Hi I’m just going through the process of applying for an Iva using swift, making a payment of £150pm but my farther in law has offered to make a full and final payment but swift are saying this is not possible as I have the means of making monthly payments is this correct, they have also said I have to make payment for 6 months before I can Offer full and final
The total amount of dept is £31000 and they won’t even give me a rough price for a full and final
A full and final can be made at any time regardless of the ability to pay the regular installments. However, some proposals do have a condition that any variation cannot be proposed in the first 6 months or year. So check your proposal and Chairman's Report for that if your arrangement is a relatively new one.
Full and final offers (It is important that you do not use the term "settlement") are based on the number of payments you have remaining multiplied by the current monthly amount. They are often reduced a little due to the fact that creditors will be making a saving on administration as well as the "bird in the hand" factor.
However -- as you have not started your IVA (have not had the creditors meeting), why not put a hold on it and approach your creditors directly with offers ? Or opt for a lump sum IVA ?
If your father in law is lending the money your surplus will be needed to repay him. You can also call a variation any time you like so there is no requirement for a six month wait. However if you did propose an IVA at a monthly payment and then settled six months later the IP would usually get a bigger fee than if you had just proposed a one off at the beginning. I suggest you get a second opinion.
