Full and final. Help please

[stickman]

Hi All,
Only my second post but help needed.
Currently on DMP with CCCS paying 230/pmth on debts of 50k realise that to go IVA route will have to increase payments by 100 approx.
If I asked for full/final settlement what are the chances of getting it and approx what would the creditors be looking for.

Thanks

[carlmcmullen]

How are you intending to raise the money for F&F?

If you are intending to raise money through a re-mortgage then if that is the case then they would probally expect you to raise as much as your income and disposable income will allow you.

If you are having a third party introduce funds (a friend or family member) then they could still ask for you to pay £230 throught the IVA for 5 years but depending on the return they may just accept a full and final. It is always difficult to advise without more information.

[stickman]

Thanks Carl,
Was thinking of re-mortgaging with NR but as you say the ammount poss raised would only be about half of what is owed and would they accept that.
Also say family did help but again only came up with half why would they poss be more favourable to accepting f&f

[carlmcmullen]

When you say are going to re-mortgage with NR is that a together mortgage that will take you into negative equity (125% LTV) ?

[stickman]

mort 70k
sec loan 40k
borrow 25k
house valued 135-140
repayment p/mth 1650
neg equity

[carlmcmullen]

Who are your creditors ?

[stickman]

Lloyds Black Horse
Abbey
Moorcroft recovery (lombard passed on)
Halifax
Cap1

[carlmcmullen]

How much do you owe blackhorse?

(sorry to ask so many questions - but lets me and other forum memebers give you some advice)

[stickman]

Thanks Carl no probs
About 12k

[carlmcmullen]

Reason i ask is that Blackhorse reject IVA's if the debt is over £4k and less than 12 months old.

So they are likely to reject, as they represent approx 24% of your total debt you will need all your other creditors to vote but on the plus side i think they all will on your list.

So i think they would accept a full and final or alternativiely you may be able to look at a 6 year IVA which might just give a good enough return to your creditors.

[stickman]

Carl
Thanks so much for all your help so far really appreciated.
Do I take it then that if I can get extra 25k through NR via re-mort or sec loan then creditors would probably accept that 25k in F&F settlement thereby writing off the other 25k making me clear of all liabilities to them.

[carlmcmullen]

I would say there is a very good chance.

You need to contact an IP to discuss your case in more detail and make a more accurate assessment of your case.

[stickman]

Once again many thanks Carl.
Could I put this proposal that we've been discussing to the CCCS who have been dealing with my DMP for the past year.

[carlmcmullen]

You could or you might want to visit IVA.com who have reviews of alot of IVA companies.

You dont have to stay with the CCCS.

Keep us posted

[stickman]

Will do and once again many thanks