full and final settlement ?

[robin1]

would the offer of a full and final settlement have to be every single savings and investment you had or are you allowed to make a lower initial offer which could be increased if necessary or if accepted could leave you with a little bit for the future.?

[MelanieGiles]

You would need to be using all of your assets to make the offer - especially if those assets were fairly liquid ones such as savings or investments.

If you wanted to keep anything back from the asset pot, you would need to provide good justification for this.

[robin1]

what figure would be likely to be accepted on a total of 130000 for a full and final settlement. and once accepted is that it finished apart from bad credit for 5 years or there other requirements and restrictions. thanks in adance

[MelanieGiles]

Whatever you can afford to offer Robin - it works by you firstly working out how this figure, rather than the other way round.

[robin1]

if you choose the 5 year repayment plan method are you allowed to switch from an interest only to a pepayment mortgage prior to entering the agreement so you are at least reducing a bit of your housing debt as well as your other creditors. also are you allowed to have any pension contributions running regular savings like isas or do they all have to be wound up prior to entering

[Viki.W]

Hey Robin, if you can switch to repayment and still offer a decent amount for an IVA then that would be possible and as you said, it will be reducing your mortgage debt a bit. You might not have enough money spare to get the benefits of an ISA, but a normal savings is a good idea for any spare overtime money or savings from contingencies.

[MelanieGiles]

That would just create a larger equity, which you would be required to release at the end of the IVA - but a repayment mortgage is always a much better idea for a homeowner than interest only. This will reduce your disposable income though, so do take specific advice from your chosen IP at to the merits of your suggestion.

[David Mond]

As Melanie has stated - speak to an IP give him all the facts about your assets (including value of your home) liabilities and Income & Expenditure - only then would the appropriate advice be forthcoming whether F&F or a mixture of F&F and monthly contribution for a period. Speak to an IP.

[robin1]

if the initial full and final is accepted is that it over or can creditors still remortgage your house and are there still reviews or is it over.

[MelanieGiles]

Once the full and final settlement is agreed by creditors, that will effectively bring your IVA to a conclusion, and creditors cannot pursue you again for debts correctly bound by the IVA.

[robin1]

if you offer a lump sum as full and final why dont the creditors demand this lump plus a monthly repayment plan as they would get much more this way,or do they prefer to get it done and dusted and off their books?

[Adam Davies]

Hi
They could do
You need to show that you have no or very little disposible income.
If the lump sum came from a third party you would state that your disposible income was to be used to repay that third party
Regards

[robin1]

my problem would be i have enough disposable income but do not want to be locked in for 5 more years. there were redundancies in my work last year and the rumours are circulating again. it is extremely unlikely not to affect me in the future ad i dont want to do repayment only for it to fail and have to go br. i have some shares which some of which are owed to a friend who loaned me money. i am sure they would allow me to offer that to help. also another friend may be able to help. Im just not sure how creditors would view it...

[MelanieGiles]

When you borrowed the money, I assume that you meant to pay it back? That is what a contributions IVA is all about, but there for people who can no longer afford the contractual payments, and wish to repay their debts over a realistic timescale.

If you have assets which could be realised to pay creditors, or friends who could help you out with a lump sum, and IVA could also work on that basis.

[David Mond]

You need to give full details of all your assets and liabilities - list them here - together with how you can organise the monies (loan from family or friend(s)- we can then (and other experts here) advise you the appropriate solution.