Is this right?

[HelenB]

Hello everyone,

I have recently offered a full & final settlement to my ip. I must admit it isn't a great offer, but it's from my mum on the sale of her car.

First of all my ip badgered me for a reason as to why I wanted to offer a F & F, I said that I wanted to start a family without debts hanging over me and they basically said that starting a family is not a good enought reason for wanting to get out of debt!

But more importantly, they have said that to arrange a variation meeting my mum would have to send them the payment first, and that if my offer was unsuccessful then the money would be returned to my mum minus their £575 fee. Is this right that we should have to give the money upfront? I've heard that a variation meeting can take a couple of months to arrange, which means that money is sat in their account earning them interest! Plus I really do not want to lose £575 of my mum's money - can't I just add the £575 onto my iva?

Any advice would be greatly appreciated.

Thanks,
Helen.

[Michael Peoples]

An IVA is not a barrier to starting a family and if your mother wants to offer a settlement figure it is up to creditors whether to accept or not. Normally the variation fee is deducted from the IVA pot. However, creditors have been restricting the variation fee so possibly your IP firm wants paid up front in case creditors refuse the variation or reduce their fee.

I suggest that you speak to your IP and explain that it is your mother's money and if the variation is rejected your IVA will continue as normal and you will make up the £575 before the IVA is completed. She should send a letter offering the money on confirmation that the IVA has been varied successfully but she should not hand over any money in advance.

[MRBLUESKY]

good advice from michael there helen,i have just had a full&final accepted,the cheque was sent the day it was accepted.in the proposal it was stated that if the funds were not recieved in a reasonable time period after acceptance my ip would notify my creditors.and if the funds were not recieved it would not be classed as a failure of my iva and i could continue as normal with the agreed monthly payments.the bottom line is iva,s are very flexible,and most ip,s would help you conclude early if funds from a 3rd party were available,my proposal was fine tuned by my case officer on behalf of my ip to get it accepted.one more thing helen i always found it easier to send emails and letters,that way you dont have to listen to people talking bull ...t on the other end of the phone.good luck and what a nice mam you have got.

[kallis3]

I agree with Michael, that you need to speak to your IP in the first instance.

Good luck with the full and final. Hope it goes ok for you.

[MelanieGiles]

It would not be my style to hold your Mum's money if the variation was not accepted, but if the IVA proposal provides for this then I suppose they are doing nothing wrong.

[HelenB]

Thanks for the replies everyone. Its so nice to finally find somewhere to ask these questions.

Also ronald.h1, thanks I have been writing to my ip but they always seem to reply with a phone call - very annoying! But I'm now going to change tactics and actually ask for a written response, congratulations with your f&f.

[Shining]

Helenb send them an email and ask for a reply via email rather than a phone call, that way you'll have full conversation to print if necessary. x

[MRBLUESKY]

thanks helen i will be a lot happier when everyone on this site has completed there iva,s one way or another i know how difficult it is,but it is a excellent solution to get back on your feet,good luck.ive had so much help from this forum,i thrive on members completing their arrangements,dmp,s bankruptcies and iva,s.[:)]

[HelenB]

Hi everyone,

Thank you so much for all your advice. Tomorrow I am sending the letter offering my full and final settlement, included is a letter from my mum.
Also I'm adding my recent valuation on my home (as requested in my annual review) which shows I'm in negtive equity - obviously I don't really want to be in negative equity, but I'm hoping in this case it will do me a favour.
So fingers crossed and watch this space.

[Michael Peoples]

Good luck with the offer Helen. the negative equity will certainly not hurt as it shows there is nothing else.

[HelenB]

Hello everyone, my variation meeting was held this week and I've had the leter saying it was approved!! I feel so strange and just wanted to say thank you to everyone on this site - I couldn't have done it without you.

[Skippy]

Congratulations, that's really good news.

Good luck for the future x

[MRBLUESKY]

hi helen fantastic news i,m so pleased for you and i know how you feel,just before xmas aswell great,your completion certificate will follow soon mine took about 6 weeks,have a great weekend and good luck to your future,regards ronald.[:)][:)]

[MelanieGiles]

We were very happy to help and support you at this time Helen, and what a great result for all concerned.

[kallis3]

Fantastic news Helen - so very pleased for you.

Good luck for the future.