Full and Final

[Jackdaw]

Hi. My husband lost his job this week, after seven years with the company. At nearly 60 we are worried about what he will be able to find. Obviously we are in a panic. My son has suggested that he will make a full and final offer for us , which is incredibly generous. We are determined not to let the IVA fail.

We have approx 17 months left of five years and have a good payment record. With two missed months, agreed with supervisor. Our Annual review is in March.

My question is, can my son use his credit card to make the payment? It would be easier for him although he could come up with the funds in a few months.

Thank you.

[bowline]

That is really nice of your son but first look at your other options as borrowing money on a credit card is very expensive and may be rejected by your IVA firm.

Is he getting any redundancy pay? Could he get another job at a lower salary - if he could then you may be able to get the IVA payments reduced.

He should be able to get a payments break to let him job hunt. If he can't find a new job he can always proposed that his IVA is "completed on the basis of the funds paid to date" so it finishes properly and it doesn't fail. His creditors have to vote to agree that but as you are so far through the IVA they may well agree if he has given job hunting a good try.

[Jackdaw]

Hi. He has an interest free card and no other borrowing. He earns very well as an ex pat. It’s more for speed of making the offer. We will contact our supervisor in the week to discuss options.

My son is just keen to know about the credit card option.

[Foggy]

I completely second and echo Bowlines suggestions. Whilst the interest element might have been mitigated, many creditors do not like early release to be funded by further credit and may well reject the offer on those grounds. I would go with, in the absence of any redundancy pay ( you are permitted to retain up to 6 months salary) to seek a payment break while looking for work, during which time your son can gather funds.

[Jackdaw]

Thank you Foggy. That was what I thought.