For Andy Davey

[dots]

Hi Andy, hope you are well, long time no chat... I just thought I would drop this question to your professional ears and ask your opinion...

After the next payment on July 1st, it will leave just 18 payments left for the 6 year term, which; including arrears will total outstanding: £8,240.26 ... Do you, in your infinate wisdom see that if my friend was to offer £2,500 as a F&F that it should be accepted without wasting time to offer it? ... I would not like to see a bum-steer on this if the creditors would generally look to a higher level, even though the term reduction would decrease the IP fees in favour to creditors as well...

In view of my changes since new job, I will look to do a new I&E at the point of offering F&F that will show that a review would otherwise be requested down from £450 per month to between £250/300 if that would be accepted, but naturally, I would be putting strength to F&F, especially as I am also only just half way through my 1 year probationary period with employer... what-cha-think???

[luluj]

I know I am not Andy, but this appears to be too lower an offer - near the 50% of the amount might be more reasonable!

[dots]

Hi Lulu,

I have seen some pass through at just over 20pIN£ in past and was just really seeing if it was still viable... As Andy might remember, I sent enormous extra dividends in year one and two and the fact that the term being reduced by 18 months will also increase the dividend to creditors as reduction in IP fees.

The alternative will be to accept a variation likely to be return just about 260 per month (@ £4,700 including arrears...

The F&F would appear to be the more welcome option under those circumstances???

[freelili]

Hi Dots

As far as I am aware from reading the forum, I think its OK to offer a lower dividend as an F and F and if its all or nothing, there have been a few quite low dividends here that I have read also. It might bring equity release into the equation though, as per your chairmans report. Not sure if this applies. The fact that I didnt have any assets really worked in my favour.

I am not Andy either, so best wait and see.

[Adam Davies]

Hi Dots
Hope yopu are well
I would love to say yes but I'm afraid that I can't see it being accepted.Your Ip may well charge a variation fee and an early termination fee,both together will gobble up your offer.
Regards

[MelanieGiles]

What disposable income would you be left with assuming the offer was acceptable - and I agree that it probably won't be. Creditors will not accept a short settlement if you could still afford to pay them on an ongoing basis.

[dots]

... No Assets or mortgage

... It will be one or the other... Variation down from 450pcm to 250pcm that I have now finally calculated. Or... If the offer F&F should be enough, then the variation is not relevant as an alternative.. The alternative to that is to drop by £200 per month (x18).

... The weight I am trying to use here is the difference between the loss of monthly dividend, the fact that I am still on probation at work so not formally on-board so to speak, and a bulk pay-off.

... If £2500 is not enough just to offer a F&F... what do you think I should be looking for?

[dots]

SUMMARY:

After July payment, my outstanding will be 18x 450 = 8100.00 + arrears of 140.26 = 8240.26

Recalculating a variation means disposable income is reduced from 450 to 250 per month and so dropping by 200 per month... At 250 per month the 18 month would be 4500 + arrears = 4640.26

If my friend can raise sufficient for a F&F, if 2500 is not enough then what would be realistic? bearing in mind that if I do not go for F&F the return would be less than 5000 anyway for the 18 month period.

Bearing in mind of topic I created earlier in the year, maybe my parents would be able to make up some difference as what they suggested and maybe between parents and friend I could look at F&F that way but waiting until parents' money comes in... The awkward thing on that is dealing with two benefactors.

Seems a shame that if you could offer a bulk reduced pay-off, that it incurs such a fee, when bearing in mind it comes to full term the fee does not exist but the same work is done!

[dots]

The car is also creeping in extra bills again, so will take that into mind when/if writing to IP, as this also weighs to the burden of being able to maintain current level... Bills too high, but also cannot afford to get another car as no residue of any residue!!

[dots]

I am wondering what would be expected if the 18 month calculation was 8240.26 if I could manage to get that clubbed together... would it be closer to 10,000 just because of fess so to settle early... They would have their money early... surely they would snap the hand off, thank you sir! Waiting until January 2010 for snail payments exact, surely does not balance with their fee system??

[dots]

Or even £5,000 settlement??? I really do not know what ball park to aim for here for a swift settlement. I really do not know to what extent assistance can go to... I have not agreed for my friend to help me, just thanked them for their generous offer to help and would consider very carefully once I know what is feasible to make this work...

I would not want to burden close friendship foolishly, especially when known but a short time and meaning so much... It is just now a turning point in my personal life and would be great to move on from th IP once and for all and have a clean slate.

[dots]

I would by nature speak to my IP, but since they transferred to Synergi (you may recall), I just want to be armed with fired-up demands/instructions and no third party comments by under-zealous staff... So as always, since on this forum, I always look for real viabilities from people who actually DO know!

[MelanieGiles]

Gordon

You raise many issues in here, which are difficult to answer without full knowledge of your case. Your IP really is the expert that you need to approach here, to discuss a settlement figure which is affordable for you partner and beneficial to the creditors.

[dots]

Thank you Melanie, I take your words on board very seriously and will have to churn through the matter with deliberation and hope that the IP is on a good hair day and he IS actually available to talk to me direct and not through his dominions or relying on slow mail processes... Thanks again, even no resolution for an answer is still a valued answer to work on and move forward...