F&F

[Oliveoyl]

Hi. I'm new to the forum and am after some advice.

I'm nearly 3 years into my IVA. I've recently moved in with my partner and he's just sold his house and has offered to pay off my IVA.

I currently pay £231 a month and have 26 payments left (38 if I'm unable to release equity from my home).

Do you think an offer of £9000 would be acceptable?

If the offer is accepted and I decide to sell my home in a year or 2, what happens with the equity?

Some advice would be great!

[Shining]

Hi, welcome

to offer as near to original payment expected is usually the general rule, your creditors get their money early.

Not sure how much equity you have to release but if you offer a F&F and your offer is accepted, monies paid and your completion certificate is received you're debt free, and your equity is yours to keep as your IVA will have concluded.

[Lisa Thomas]

If you can prove you have less than £5k equity interest in your home the remorttage/extension will not apply.

So you would either pay c£6k in 26 months or £8,778.

Establish the equity first then make an offer.

I wouldn't offer £9k - that's more than the maximum you would pay.

Say £5k or £7k depending on equity.

Don't tell them he can afford more or they'll probably insist on more!

Best of luck.

[Oliveoyl]

Hi

Thanks for the responses.

I probably have about £20k equity in my house. Do you think £7k would be acceptable?

[Lisa Thomas]

Hi

So the higher amount would apply to you.

It will be up to creditors to decide - the alternative is for them to wait 3 long years before its over.

If they reject it you could always go back with a higher offer.

If you want comfort the most attractive offer would be to match the remaining payments of £8,778 but personally I would see if you can settle for less and keep some money back.

[Oliveoyl]

Great. Thanks for your help.

[Shining]

Fingers crossed for your offer.