Michael, do you or any of the other experts think that an offer of F&F is likely to be accepted when it's from the sale of the property and there is sufficient equity to repay more of the debt?
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
In essence yes. If the offer is rejected the client does not have to sell and can just run the clock down for the six years. The creditors will only get the contributions unless the client can obtain a secured loan which as you know is at a restricted loan to value and not available for all.
If the client offers to sell and introduce more than creditors would get from a six year IVA then there is no reason for creditors to reject. However it may come down to a bit of haggling at the time as to the amount paid into the IVA unless it is HMRC who will want the lot!
Hi Michael. Re the HMRC, why would they want to take the lot? i didnt understand your last bit . I plan to haggle re the f&f offer. I am hoping they will take 35k because we need some money left over to live/rent/perhaps a deposit totry again for a mortgage. I dont understand why the hmrc would come into it. can anyone explain, thanks
If HMRC are one of your creditors they tend to go for blood and equity release is the prime method of getting it. If they are not one of your creditors they will not be involved.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Phew, thanks for that Foggy. They are not involved. We have asked gt to accept 30k but they say they wont hold the variation meeting until august. so i guess we just have to wait and see.
Hi there
just a quick question. I am trying to offer a f&f settlement to gt but they will not even put the offer forward to the creditors. Am i allowed to insist that they put my request to the creditors at a variation meeting .what rights do i have to insist? I owe 48k but paying off 18k i have already paid 5 so i owe 13k. i want to sell my house and offer 20k as a f&f. gt say the creditors won't accept this because i have more equity and the creditors will want 100p in the pound +,but that will leave me nothing left and i need 50k to put a deposit on a new mortgage. (if i get one)can i insist that gt at least ask the creditors. without the sale of the house we are struggling.
The other side to GT's arguement is that, as things stand, you are not likely to actually be able to release any equity come the time and the creditors would only end up with whatever 12 months extension would get them, certainly not the lion's share of the equity available.
If you base your offer on the remaining payments plus 12 months, they will be getting what they expect to get -- but they will be getting it early and will save a chunk in the costs of administering many, smaller, dividend distributions over time, as will GT themselves.
They are being obtuse and ignorantly stubborn purely for the hell of it -- or at least the person you are speaking to is).
You are entitles to insist that the offer is put to the creditors -- it it their decision to make NOT GT's.
I would suggest you make a formal complaint to GT if they do not comply, possibly escalating this to their regulators.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Your IP must call a meeting of creditors within 21 days of you requesting it. However they do not have to recommend acceptance of the variation so it comes down to what creditors say.
Thank you for that. I spoke to gt again and they are still saying they dont have to call a variation meeting. because of this i will put in a complaint today. Any ideas who i complain to first. The person i spoke to at gt said there is NO governing body. Can anyone help
thank you
The person you spoke to was just trying to put you off.
See http://www.grant-thornton.co.uk/Hygiene/Disclaimer/ but these days I would say make a written complaint to the office that normally deals with you marking it specifically for the attention of the person you last dealt with plus stating that in part the complaint is about them.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
