Full and Final Settlement

[irish_ram]

Hi All,

I have been talking on here about making an F&f on my IVA and have decided its the way forward.

I owed 17K and went into an IVA on 13K, and have so far paid off 3K in the year I have been in it. I am thinking about making an off of about 8K to see what they say. Anyone with experience know if this sounds like a goo offer.

Also i am at my Annual review and am compiling it all to send back to them. So, for making my F&F Settlement, the money is coming from my GF.

I want to know I am ringing and asking for the right thing and not to mess anything up. My plan was to ring them and say I want to make a F&F offer and that the money will be a gift from my GF. Does this sound the right thing to do, as dont want them asking questions that I didnt have the answers for and then cos of that, them getting suspicious for some reason

[MelanieGiles]

It looks a fair offer from what you have said, but at the end of the day the final decision lies firstly with your IP and in reality with your creditors.

My personal advice would be for you to ask your IP to work out a settlement figure for you based upon you returning the original level of dividend pledged. This, in my experience, is always a good place to start negotiating.

[irish_ram]

Cheers Melanie,

Sorry for being a bit stupid, but what do you mean by " a settlement figure for you based upon returning the original level of dividend pledged".

Als when you say the final decision lies with IP, does that mean they can refuse a F&f without consulting crediters

[MelanieGiles]

Your original offer to creditors would be returning XXp in the £. What I am suggesting you ask is for your IP to work out how much would beed to be paid in to produce a return of XXp in the £ now.

IPs should not refuse to put forward offers of settlement to creditors, but they will have a good idea of whether it is worth doing.

[irish_ram]

Now I get you, sorry for the stupid question lol.

Think Ill give them a ring today and ask about the offer to match the pence in the pound I was originally paying.

[MelanieGiles]

It was not a stupid question - it was a very sensible one, and do let us know how you get on.

[irish_ram]

Cheers,

So going on that and working it out roughly myself, is this correct below.

Working on paying off over 5 Yrs if payment stayed the same

Total Debt: 17K
Total IVA: 13K
IP Fees: 5K
Total for Crediters minus Fees: 8K

8000 divided by 17000 * 100 = 47P in the Pound

Working on me offering F&F Settlement after 1 Year

Total debt: 17K
total IVA: 13K
IP Fees: 3K(Taking into account of the reduced Term of only 1 Year, so might be less or more, not sure)
Already Paid: 3K
F&F: 8K
Total paid back to crediters after fees: 8K

8000 divided by 17000 * 100 = 47P in the Pound

Is this roughly correct and if so, it looks like my offer would be covering about the same amount paid back in the pound as Original IVA, but could change depending on what Fees there would be for only one year.

[MelanieGiles]

Yes - this looks fine, and is probably in the right ball park, of course dependent upon what your IP is going to suggest in terms of his/her fees.

[irish_ram]

Cheers again Melanie for the quick a good responses.

I mean i know ill have to ring IP to find out exactly all the figures, or might be able to look at paperwork at home, but figured if i was cutting my IVA from 5 to 1 year, then with setup fees and the yeraly cost, cant be more than 3K surely.

But if i am roughly correct with figures above, the only reason I can see the F&F not accepted is if some if not all of my Crediters wanting to hold out for more pence in the pound and willing to take the risk of waiting long term for it. I know every case is individual, but are ther eany stats on success rates of Accepted F&F when the settlement figure works out to pay them back the same if not more Pence in the Pound

[irish_ram]

Also another query is, if I request a F&F from Crediters am I saying i will definately pay that and if say no after they give me one it will look bad, or if I get an Offer back say tommorow of a fee i can manage, how long do I have to pay this then, or can i specify the amount wouldnt be available till say 2 months etc

[MelanieGiles]

You really just need to put your proposed settlement to the IP - based upon the amount you wish to offer and the timescale involved and let them guide you directly.

[irish_ram]

Ok, thanks for your help again. i am not looking to be able to offer the F&F till probably March/April Time, so I will ring them and offer them my Amount and that it will be available in March, which I presume might be more of an Incentive as by April time, I will have made a further 5 months payments so another 1K on top

[irish_ram]

right I am updating this one as I seemed to have created several Topics all with same Info, apologies people but here goes

Ok, I have rang my IP and said I wanted to offer an early settlement, she said where is it coming from and i said GF, so she said i have to write them a letter addressing it to the Post Appointment office with offer and details and they will then arrange a crediters meeting if everything checks out. Is this the correct way it should be done as if it is, I will send the letter today

Does anyone know roughly how long it should take

Cheers for help

[irish_ram]

Anyone got any Ideas on this.

Sorry to sound pushy, but i spoke to just someone who answered the call and not my actual IP, so wanna make sure I am doing the right thing, as dont want to send the letter and then find out later I should have spoke to my IP and gone the wrong way about it

cheers Again

[David Mond]

You need to establish:

1. You have the lump sum and time of availability of it?
2. What discount your Supervisor is prepared to offer?
3. What will be the cost of any variation (if any)?
4.Your current financial circumstances.

When a debtor has asked ClearDebt on these matters we usually request that the lump sum is paid into our client account which will only be released once the Variation (the F&F) has been accepted.

Hope the above helps.