Ive read that a f+f will only be accepted if your family or someone gives you the money for that purpose,we have five children and are struggling to pay our iva.We pay £368 per mth.In aug when our eldest leaves school we will lose tax credits and child benefit for him.There is a possibility of my husband getting a lump sum of arrears of pay that we could use to offer a full and final would this not be allowed as when our money goes down i dont know how we:re going to afford repayments.Also if the arrears do come through our tax credits will stop as it goes through the pay i feel we:re between a rock and a hard place here.p.s the lump sum is a one off payment
The arrears of pay are actually a windfall in the IVA, which creditors would be entitled to receive in any case, however if you are no longer in a position to carry on with your repayments creditors might agree to accept the money as a full and final settlement.
Three years in july there is no equity release if we where to get 20,000 we have about nine left to pay inyo iva would they take it all?what would we live on as tax credits would stop
Always best to be truthful and honest always works out better in the long run!
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
I dont want to be untruthful but wiyh five kids things are tight.If and it is an if because at the moment they;re still dealing with the union and we dont know when and if it will come but if it does and is say 23,000 one of payment we would need to hold onto at least ten to cover the tax payments to live on for the year,would we be able to buy a car and then offer the rest as a f+f i ask this because we havent had one whilst in the iva but with 7 of us our bus bills per mth are terrible plus my husband is due to move workplace in october plus two of my children have regular hospital appointments????
It depends on a number of factors and what the offer will give creditors now as compared to what they would receive over the duration of your IVA. I suggest an offer of around 10% to 15% less than your total offer over 5 years which might be acceptable and it is worth discussing with your IP and "borrowing" the money from a family member. However you must ensure that the voluntary redundancy is going to come through though!
Last edited by David Mond on Sun Feb 08, 2009 3:25 pm, edited 1 time in total.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Hi
If you are not going to be able to carry on with monthly payments due to loss of income then your creditors may well be happy with a full and final, even if it comes via a windfall.You will need the expertise of your IP to put this forward in a well worded variation.
Have a chat with your IP now, just be sure that it s your actual IP that you are talking to and try to get a response in writing.
As othes have said it alway pays to be 100% honest with your IP
Regards
