Full & Final Offer Advice Please

[puzzlellie]

Hello Everyone, it's been a while since i've posted and I hope that some of you experts might be able to give me some advice please?

I have just paid my 24th IVA payment (payments are £350 month x 60 months).

My father has just split with his wife and is moving out of his home into Sheltered Housing. As he has to sell his home to pay off his wife, he has suggested a possible lump sum of money (£7k to £8k each was mentioned) to help out me and brother. Obviously if I had any chance of a payment of this nature, my first priority would be to try to finalise my IVA.

There is an equity clause in year 4 of my agreement but I cannot see this coming to fruition if the markets continue as they currently are. (My house is worth around £130-£135k but I have mortgage and secured loans totalling £126k-£128k).

If I were to offer a figure of £7k to £8k to finalise my IVA (that has 36 payments of £350 remaining), do you think it could be enough to get accepted?

My other reason for wanting an early settlement is that I work in the Public Sector and my employers are currently undergoing a major restructure following the recent Comprehensive Spending Review and the need to drastically reduce budgets. To add further insult to injury, I work on the Building Schools for the Future Project (for those who may know of this), and this has also suffered a drastic spending cut of 40% - therefore a double-whammy for me.

My total uncertainty of the future makes me even more eager to complete my IVA as early as possible.

Any advice would be greatly appreciated.

Thanks all.
xx

[liamjames]

Hi puzzlellie!

I've known all sorts to be accepted, but it depends on the change in dividend as well as the likelihood of the IVA completing successfully. You are offering £7-£8,000 rather than the expected £14-£24,000 (depending on the equity estimated in your proposal) which is a significant drop but not one to be dismissed, especially considering your fears for the future success of the IVA. Your IP will be able to tell you how this would affect the dividend and whether he feels this would be worth offering.

Please let us know how you get on.

[Shining]

Hi it may be worth speaking to your IP and getting their feelings on this, I hope it get resolved for you with the uncertainty ahead. All the best and as Liam says do let us know won't you? x

[MelanieGiles]

Your IP will struggle to justify that payment to creditors. Personally I would accept the money from your father and put it into a savings account. Then, if and when your job becomes under risk, you will have paid a few more IVA payments hopefully, and the offer sum will see much more sensible. At present, I am not sure you are offering enought to tempt them to release you early.

[puzzlellie]

Thanks everyone.

Melanie, given the numbers I have provided can you tell me what a sensible offer might be please? I am helping my father a lot at the moment given his recent 'single status' and the need to move house etc. so I may be able to negotiate a higher amount if I can convince him it would be for the greater good. (It would be cheeky of course but if needs must).

Thanks again

[stewpots]

Your IP will struggle to justify that payment to creditors. Personally I would accept the money from your father and put it into a savings account. Then, if and when your job becomes under risk, you will have paid a few more IVA payments hopefully, and the offer sum will see much more sensible. At present, I am not sure you are offering enought to tempt them to release you early.

Would you be allowed to put a windfall into a savings account, I would have thought the IP would expect it to go into the IVA ??. No expert on these matters of course.

[puzzlellie]

Hello Stewpots,

I did wonder the same thing about receiving the money and needing to declare it as a windfall. However, it is going to be a few months before there is a possibility of getting it anyway (if waiting for dad to sell his house) so as Melanie suggests, I will probably wait and a few more payments will have been made in the meantime. However, as my father is also looking at cashing in some Bonds, there may be an option of getting it earlier (and maybe more) if I could get an idea of what might be an acceptable amount.

Thanks again for all your comments and advice.

x

[Lord Soth]

Paula. I believe this would be classed as a gift rather than a windfall, your IP can confirm.

[kallis3]

I think it would be classed as a gift as well, and I agree with Mel that you should put it into a savings account.

[Shining]

Seems a very sensible option to put the money away and pay a few more payments before making an offer, would make it more likely to be accpeted should you have job problems. x

[MelanieGiles]

I would have thought that an offer of around £10k to £12k might have more merit, but ask your IP to work out a figure for you to achieve the level of original dividend pledged. Your father's gift is not a windfall, as the money would be held in trust for the sole purpose of settling the IVA.

[puzzlellie]

Hello all,

7 months have flown by since my last F&F question so I am hoping that my suggestion of an offer might now be more realistic (especially as I understand that it takes 2-3 months to get it processed). I am still working in Local Government which is on very shaky grounds and my Service Area restructure is being published in Sept making my role as indefinite as ever (especially in the world of Building Schools for the Future which is changing by the minute and our funding from Mr Gove is as uncertain as ever).

I have now made 31 payments of £350 which equates to £10850 leaving a 60 month balance of £10150. I am also thinking that if another 3 payments had been made by the time the decision is made, I will be nearer to a balance of £9000. With this in mind, would my fathers offer of £8000 for a F&F settlement now be more realistic?

I am very keen to use this offer to clear my IVA in order to remove some of the utmost panic surrounding the thought of losing my job. I am seeing good colleagues dropping like flies throughout the Council restructure and it only feels like a matter of time before it's my Deptartments turn!

Any advice would be much appreciated.

Thanks all
Paula x

[kazzafunk]

Hi Paula,

It is worth giving it a try as long as you make it clear that the money is only available for a F&F offer. You could use the threat of redundancy as a reason for making the offer to further support your offer. I would definitely run it past your IP - you've nothing to lose.