F&F settlement offer declined

[MYLO20]

Hi... after a painful 10 weeks the dreaded day arrived and my offer has been declined.

I currently have 34 payments remaining at £120 = £4080. Based on redemption/ online estimates my property is excluded for insufficient equity purposes.

The decision is based on an increased disposable income of £209. This x 34 = £7106 and therefore creditors feel its worth the risk. Understandable, however... I have a horse and have done for 20years. Im maxed in the area of pets and therefor cant fully disclose the true cost. My disposable is less than the £209 they have on paper.

Barclays sold majority of my debts to PRA group, and it seems as though they want to hold out for the max profit, seen as theyl have paid a small amount to take ownership of my debts!

My iva company are great...Jarvis...previously Aperture. My workplace has recently been taken over so due to less than 2years service, I can withdraw my pension or transfer. I've gone back with an increased offer of 4k...jarvis will try £3500 first.

I understand this offer is low compared with the increased outstanding, I just feel like I'm in a corner due to not being able to fully disclose the expenditure as mentioned.

I know that no one can know the outcome, but would anyone have anything positive to tell me? Anyone been in a similar situation?

[Foggy]

Not many come back with outcomes, so I can't comment on that --- I just wanted to wish you luck.

[MYLO20]

Thanks foggy...il need it!

Very disheartened after a long wait to be told the expect another 3k but such is life. With Covid, redundancies and so much uncertainty i honestly thought they'd see the benefits of a cash sum.

Fingers crossed on the increased offer...il keep you posted!

[Shaun Vickery]

When you say 'based on redemption/ online estimates my property is excluded for insufficient equity purposes' can you just tell us how you have calculated this? I'm just wondering if that has been factored in correctly as it might be influencing their decision.

[MYLO20]

Hi Shaun

They asked me to submit an online valuation and a redemption statement. The 85% stipulation means I would have around 2-3k equity.

I've since found out TIX the insolvency exchange act on behalf of most of my creditors and this doesn't look to be a food thing. My increased offer was sent last week and they still havnt responded. My 14 days are up on tues coming so if they don't respond it looks like I'm tied in for the long haul.

Thank you

[Shaun Vickery]

Ok, it's just that, if you are unable to release equity from your property in accordance with the terms of the IVA, it will usually be extended by 12 months payments instead. Did you factor this in to your offer?

[MYLO20]

The 12 month extension is for those that have the equity but are unable to release it with a remortgage or loan.

Those that do not have sufficient equity do not get the 12m extension.

Having read my iva contract, the above is how I made sense of it

[MYLO20]

Its also worth mentioning, my contract states equity would have to be over 5k in order for it to be factored.

A lot of people seem to believe the 12m extension is for anyone with a property whether they can release funds or not, but that isn't the case!

It wouldnt be fair for a homeowner with little/no equity to have theirs extended but for someone renting or living with family not to. The end result is the same...no extra money hiding away they can have access to!

[Shaun Vickery]

Sorry, yes, I have misinterpreted (misread!) the figures. I supposed the only argument may be that, just because there is insufficient equity now, it doesn't mean that there would be when the equity release obligation actually becomes due. Ultimately, in any respect, the decision lays with your creditors...let's hope your increased offer is accepted.

[MYLO20]

Yes, of course they could be holding out for a miracle! Seems strange to me given the uncertain times we're in, as there's a higher chance of job loss than a lottery win!

Fingers crossed. If they decline theyl get less money in the long run..taking in to account fees and risk. Iv offered the outstanding as based on my original agreement so il keep everything crossed!

Il keep you posted!

[Shaun Vickery]

Creditors do occasionally vote in slightly unpredictable ways but I agree with you. Hopefully they do too!

[MYLO20]

Hi guys...

My 14days were up today and creditors finally accepted. My increased offer was 4k and they've accepted this! I'm no better off financially as I would have paid in £4080 continuing...but no annual reviews/ restrictions on income and i can work on my credit rating with a small credit card so I'm not starting afresh come the time it drops off my credit report.

Very long stressful time but im over the moon thank you for all of your help and advice

[Foggy]

Glad it was sorted -- not entirely what you wanted, but at least you can draw that line in the sand now.

[Shaun Vickery]

Great news. Congratulations on reaching the end of a hard road and all the best for the future.

[MYLO20]

Hi All...

So my F&F was accepted on 25th January and I recieved my completion certificate yesterday 11.03.21. Cant put in to words how amazing this feels as I can finally move onwards and upwards!

Just wanted to update you all, as I know a lot of people tend not to post once accepted etc.

My IVA was originally with Aperture...bought out by Jarvis who completed the F&F but are now renamed again as Debt Movement I believe.

Good luck to everyone