Full and Final

[Pbryan10]

Hi All
We have a F/F meeting for 25th Oct where we are proposing selling our house and paying a set figure from the proceeds into the IVA as full and final. We are having to do this because of my wife being made redundant and getting a new job with a lower income.
The question is that if it is agreed do I have to keep making the current payments until my house sale completes and I pay the lump sum?
Thanks

[ray_a]

Hi Pbryan

Welcome to the forum!

Basically you should keep making the payments!

You need to watch out for any 100% payments to creditors as you may need to pay statutory interest in your IVA.

Perhaps you could give us some more info so we can advise you as to what you should do!

I did the same and had a major problem with statutory interest!

Good Luck

[Pbryan10]

No prob with stat interest as My original debt was circa £170 k and I'm paying back 26p in the £ via f and f (the same as original proposal)

[ray_a]

Great News

Pleased about that!

Statutory Interest and I are big time enemies!

[jpj]

Is that right Ray A ? ...Ive been told you stop paying monthly payments when your full and final figure is oficially agreed and then you have 12 months to pay over the f+f figure!

[Adam Davies]

Hi
I stopped paying mine once my F+F was agreed.
I think that you will need to take advice from your IP but I would say stop your payments unless the F+F requires you to sell your property as this could take some time.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

Assume that you are talking about a variation of an original IVA? This issue should have been detailed within the IVA proposal, but my view is that you should continue to make the payments until the house sale has concluded. What does your own IP have to say on this?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[ray_a]

Jpj

I think it all depends on what you agree with your IP and how much you are paying.

If the house sale reaches 100% pay out to creditors then you can stop making your monthly contribution. That was what I was told when I agreed to come out of my IVA!

[jpj]

So you could end up with your house selling in 6 months time, 6 more months of repayments you claim you cant afford and have to pay a "fixed figure" when your house sells??

[MelanieGiles]

Good point jpj and one I had missed. If the variation was necessary due to unaffordability, and this has been explained to your creditors, you should not need to make ongoing payments - but your IP will give definate guidance on this point.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[jpj]

Welcome back Melanie...Im sure i read somewhere that you endured 24 hours in an airport lounge....?? Uggghhh.. I would sooner do a 5 year IVA![:D] Hope the rest was good though.
I know all the members realise what a valuable asset you are to this site, your dedication is truly honourable.[:)]

JPJ

[MelanieGiles]

Fortunately not in an airport lounge but in a posh hotel on the beach, so I didn't feel too bad about things!

And many thanks for your kind words - I have had a very difficult day battling with creditors meetings and consoling upset clients today, so you have made me feel a little perkier! Even IP's sometimes get fed up!!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp