full and final advice needed

[traceyb]

hi i am eleven mths into my iva and it is for six years paying 225 for 50 mths and 77 for the remainder also has equity release tied in even though no equity and never will be due to 30k secured loan. asked if will be able ro move and in a round about way said no. therefore want to settle as wil need to move before yr 5 as it is a two bed and have two children of opposite sexes one whom may have learning difficulties and whilst i am in an iva i cant reduce my work hours so i can be at home more to support him. overall will pay back 12944 of which jusr over half is for creditors and the rest is fees disbursements etc. what would be a good enough offer? also one of the creditors is northern rock from our together mort but they will get the full amount as my husband is not in the iva and are my reasons good enough? the money to settle would come from an ppi reclaim that is going through and family

[plasticdaft]

Any ppi reclaim would be counted as a windfall and be expected to be returned to creditors as part of the IVA I believe. Certainly money from family could be used to offer a full and final though.

Paul

[traceyb]

hi thank you for your reply. sorry if i seem a bit dim still have a bit of baby brain am i right in thinking that any extra you pay in to your iva is a bonus for the creditors as they get more money it does not reduce the term of your iva. also if i could get a family member to help out what would you think would be a reasonable offer and are the fees negotiable as in hind sight i could possibly not be able to move for the next eight years!!!

[kallis3]

You're right there Tracey. The only time it would reduce the IVA would be if you were to pay your debts off in full before the end.

You would normally be expected to offer as close to the original dividend as possible. Have a word with your IP to see what they think.

Fees should be reduced if you finish early.

[traceyb]

thank you just last couple of things do you take into account what you have already paid when offering f and f and what other costs are involved also if they reject it do you carry on as normal or can the creditors bankrupt you even though the iva has been running smoorhly

[MelanieGiles]

It is a shame that these issues were not considered by your IP before the IVA was proposed. What is the current value of your property, and the amount you owe to the mortgagee and secured charge holder?

[traceyb]

hi the property is curently 105k but was 125k when the secured loan was taken out. mort now is 97 and secured loan is30 although this will be different when ppi is sorted so never will be equity as in the iva they want me to remort at max 85% ltv and from what i have read remort is few and far between so it looks like i might have to pay an extra yr making the iva seven yrs so a realistic f and f is what i need to do for reasons explained earlier

[MelanieGiles]

Do you think that your family would be able to raise enough to offer a full and final settlement which gives a similar return to that creditors originally agreed to accept?

[traceyb]

MY dad could help me out but would have to give him realistuc figures do i need to offer what the creditors would get for the entire iva and how much for fees as they are 5500 for the term can anyone advice

[MelanieGiles]

What are the basis of your IPs fees in the proposal - are they fixed or based on a percentage of realisations?

[traceyb]

they are fixed as i have been given a break down

[traceyb]

they are fixed fees [?]

[MelanieGiles]

Then you should benefit from a saving in fees for the years that you save - but the IP will probably want to charge a fee for varying the arrangement.

[traceyb]

thank you for your advice one last query if it gets rejected do i carry on as before

[MelanieGiles]

You can do - but it really doesn't solve your problem of needing to move. Have you seriously considered whether bankruptcy proceedings would be a better solution for you all to make a fresh start?