Full and Final Settlement

[ian1968]

Hi all - i am currently with Grant and thornton who have been excellent. I have 17 payments left of 324 per month. My girlfriend has offered to pay my IVA off - do u think if i offered the 17 x 324 in payment they would accept or not. Unsure of criteria - just need to get out of this IVA for personal reasons. Also how long does the process take and do all creditors have to agree. thanks

[kallis3]

Hi,

I think that if you offered the full amount it would be accepted. I take it you don't have any property?

A variation meeting has to be held but it is similar to the original ceditors meeting. I'm not sure if it is the same percentage who have to vote yes or if everyone does.

Have a word with GT and see what they think.

[MelanieGiles]

This would seem to be a very good deal, and I am sure that your IP at GT will look favourably upon it.

[lil.me]

they would snap your hand off at that and have a sly snigger as your back was turned.

17x324=5508 take off final year fees and a bit more,look at offering 4k max to start with and if your feeling lucky as low as 3.5k.

[kallis3]

I doubt they would snigger, they would just be pleased to be able to get their money.

[lil.me]

I doubt they would snigger, they would just be pleased to be able to get their money.

im trying to point out that "sound" advice would involve offering a lower amount than just adding up the monthly amounts would equate to.

[MRBLUESKY]

lil.me it doesnt work like that ips fees are secured within the agreement they even get a fee for a lump some,%10 or %20.all f and f offers are judged on individual circumstances,some reduced offers can be accepted but generally creditors take the shortfall and they decide what is acceptable.the criteria for a offer is important,so your ip is best placed to advise you on your particular circumstances.

[plasticdaft]

I certainly wouldnt offer the full £5.5k,an offer of £4k may well be acceptable.
Remember though that any defaults will remain with you for 6 years from the date of your IVA starting,so credit will be very hard to get until that point.

Paul

[kallis3]

It's a common misconception with some people that as soon as you make your final payment your credit record will be fine.

Not so unfortunately.

I would try an offer of £4k first.

[Debtwitch]

Hi Ian

I'm sure that when you speak to your IP, they will agree that your offer is acceptable.

Your variation proposal has to be put together by your IP, agreed by you and circulated to your creditors with a minimum of 2 weeks notice for the variation meeting. The admin following approval of a variation should hopefully take no longer than 2-3 months before your IP can issue your completion certificate to confirm your arrangement has been satisfactorily concluded.

It is very kind of your girlfriend to offer to help you out. I take it she has savings that she is looking to use and not thinking about taking credit to help you out?

[robert25]

And I think your girlfriend is making a fantastic offer. You must have a great relationship. Well done

[Mr Hadenuff]

We have 28 months to run on our IVA and have been told that it will take up to 6-8 weeks to process an early settlement offer if the insolvency practitioner puts our offer forward.

The total amount to pay would be around £26k and we have offered £24k stipulating the funds would only be made available for the settlement.

DFD would not say how likely this offer is to succeed.

I have written a comprehensive letter to them explaining our uncertain job position, divorce, stress and the chronic diseases afflicting us along side the stress of making ends meet for a family of 6 in 2009 with high grocery, fuel and energy bills and the financial straight jacket of an IVA imposed nearly 3 years ago.

How do you think this offer will be viewed?

[Michael Peoples]

If this money is only available as full and final creditors should snap your hand off. The dividend may actually increase if the fees reduce and given the shorter timescale this appears to be a very generous offer.

[MelanieGiles]

It sounds like a great offer to me - and I wish you the very best of luck. Let us know how you get on in due course.

[Mr Hadenuff]

These are the only funds we will have access to for this purpose.

DFD have said it might not be enough. If they accept the offer it is 95% of the original IVA sum...which thye are getting 2 years ahead of time. My greatest fear is thye will not accept it.

Anyone who says an IVA is a soft option needs to live it. The hamster wheel of the IVA wage slave turns very slow. Forgive the political comment but the very people who chase me down for my debt just brought the global financial system to collapse.....and Freddy still drives a very good car....and nice house. Shame on them.