Full & Final - Income & Expenditure

[Beau77]

Why is an income & expenditure review necessary when offering a sum of money for full & final settlement from a third party? I have no problem in providing the info, just curious? Thanks.

[Michael Peoples]

Your IP will want to show your creditors that it is a good offer and creditors should accept. However, if creditors would achieve a much higher return by letting the IVA run it's course they may decide to do this. Your IP really only wants to give the full story to creditors and this will improve your chances of acceptance.

[Beau77]

Michael, thanks for your response. The trouble I'm having is that I am going on maternity leave in 2 weeks & the IP is asking me to prove income & expenditure of which (until the baby is here & I know how much I am having to spend on him each week/month) I don't know. They are also asking me to provide details of child care costs when I return to work .....I haven't had the baby yet!! Is this normal, it seems extreme to me???

[MelanieGiles]

Try and give best estimates - and you and get hold of childcare costs by ringing round a few child minders and nurseries. Your IP is being reasonable - and I would be asking for the same things if you were my client.

[Beau77]

Thanks Melanie, I want to be as cooperative as possible just finding it difficult to estimate costs. The other point being that I only intend to return to work part time & at this time am not sure what the hours will be (haven't even thought about it, let alone discussed with employer) so all I know is that income will be quite dramatically reduced but to what I don't know.

[MelanieGiles]

You can only do your best - make some assumptions and caveat your calculations on the basis that they are your best estimates at present but the figures may be subject to change.

[Beau77]

Thanks, I will do my best. They are asking to see my bank stats & pay slips etc ...I understand they are entitled to do this but they obviously show my current full time wage etc which won't match up to my estimated income & expenditure review. I am worried that they will think I am trying to deceive them somehow.

[Shining]

Good luck Beau77 with your full and final offer, I would pop a letter of explanation in so they realise you're having a little one and planning to return to work part-time rather than full time and any other change of circumstance you think of.

[Beau77]

Thanks Lesley, I must admit I'm finding it quite stressful & I worry my poor baby is feeling it!!

[Michael Peoples]

If in doubt lift the phone and ring your case worker. If you explain as you have done on this forum it should be easy enough for your IP to be able to recommend your full and final. We would also ask all the questions to give creditors all the info but as Melanie says these are only estimates and anything that can back up your figures would be helpful.

Many congratulations on the upcoming birth and try and keep the stress down. There will be enough of that after the baby is born.

[MelanieGiles]

So speaks the voice of a first time father!!

[Michael Peoples]

Exactly!