Is this a good offer ?

[whichwaynow]

With my proposal only days away my debt is £90000.00, the amount of equity I have in the house is £43000 my IP costs are £3000 for a F&F offer. So if I am right my creditors would get back about 44.5 p in the pound. Does this sound like a fair offer or should I be thinking about a plan B ?

[hara]

with so much in equity cant u make full and final offer or sell house,down size and move clear some of the debts and pay rest over the years.

if you offer 44p in the pound and if iva succeds, there wiil be clause of remortgage in the 4th year and if house prices improve the credotors may get their full 100p in the pound.

full and final rather than a IVA semms ideal here.

hara

[whichwaynow]

To expensive to move in the area we are in. Only have about £100.00 pm spare after all the bills (not cc, loans) have been paid. Hence remorgage and IVA F&F offer of £40000 after IP costs.

[hara]

Best is to seek advice from a reputable IP

hara.

[MelanieGiles]

Hara makes a good point here. Increasingly I am finding creditors reluctant to accept a full and final offer from equity release, when they could have five years worth of monthly repayments followed by an equity release at the end - potentially when the property has increased further in value. If you currently do have any disposable income, it may be difficult to get creditors to accept just a full and final offer now.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[whichwaynow]

The reason I was told to do a F&f offer was because the amount of spare cash I had was so low after all the bills had been paid. I thought that you had to have at least £200.00 spare pm to do a IVA over 5 years.

[hara]

True that y I think my solution appeals to if I were u.

As the forum does not know full details, it may be a good idea to give full details so that an expert on the panel like Melanie Giles may able to guide in the right direction.

But u have to make final decision.

hara

[hara]

With so much equity in the house there may be other alternatives such as remortgaging, a secured loan selling house and renting or down sizing.

Remember IVA ties u down for almost 5 years,with added perils of failing and the dreaded 4th year remortgage.

hara

[MelanieGiles]

A full and final settlement would then possibly work in your case, but if you have little disposable income how will you be able to manage to service increased mortgage payments?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[hara]

IF I were whichwaynow,

I would sell don sise so taht I would be paying same morthage or less.

Also therer may offers of mortgages so that with a bit of shopping around and hard work may b able to less in mortgage .

hara