At least amongst the posters here, the majority of F&F offers, based on the anticipated return from agreed regular payments, are accepted. The creditors are getting what they agreed, but are getting it early and in one lump --- and saving on time and administration costs. 'A bird on the hand is worth two in the bush' and all that.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
That all sounds very reasonable and true!
One last concern before I write to Iva.org. When my Iva was set up and the creditors meeting was arranged there was supposed to be 5 creditors voting, however only 2 did (both Santander, current acc and cc) the vote was carried by these 2 but as the others didn’t put in a plea are they likely to be difficult when I propose a f&f payment?
Tue May 31, 2022 5:22 pmDapplesES wrote:
That all sounds very reasonable and true!
One last concern before I write to Iva.org. When my Iva was set up and the creditors meeting was arranged there was supposed to be 5 creditors voting, however only 2 did (both Santander, current acc and cc) the vote was carried by these 2 but as the others didn’t put in a plea are they likely to be difficult when I propose a f&f payment?
It is anyone's guess, really. Much will depend on why they didn't engage in the first place. They were happy to accept the outcome initially, so might just be happy to roll with it now.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Sorry to keep asking questions and advice but this situation is worrying me sick!
As you know from above I really need to move to a more suitable location. So I’ve been trying to look at ways of dealing with my IVA and sell/buy without losing a huge chunk of money to the Iva.
One option I have not so far considered is a injection of money from a family member as a full and final offer. Basically I should be able to borrow from my brother in law. My Iva was over 6 years and I will have paid 7 months of £100 by end of June. I would hopefully offer look at offering £6000-6500 as a full and final payment. Would there be additional fees to pay on top of my offer? I would stipulate that if the offer is rejected then the offer of help would be withdrawn. Also would I then be able to sell/buy without my creditors looking for more money afterwards?
Obviously I have no idea how long the relocation process would take and so the creditors could be possibly waiting considerably long if they waited for my property sale to go through.
Ask as many questions as you wish -- it is why we are here.
Yes .... settling on a F&F with monies donated from your brother would be a great solution. IP and creditors do not need to know if you intend to pay this back after the dust has settled and some do not like to accept offers based on borrowed funds.
Once the IVA has been completed you are free to do whatever you wish regarding the house. It would also take a lot of the pressure off and make the move easier to handle.
There will be an additional fee of around £300 for a creditors meeting, but this generally comes out of the payment offered, rather than you paying extra.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks Foggy!!
When you say completed do you mean when the f&f proposal is agreed or once I got the completion certificate or is it somewhere in between?
Also could the creditors come back for more money once my house is sold if that happens before completion?
There are different ways of treating a F&F. Usually it is simply a stop on regular IVA payments between paying in the lump sum and the completion certificate being issued. Often there still could be a call on windfalls, inheritances etc. if they happen before completion. To be on the safe side we always say to wait until you have that completion certificate issued before you can consider yourself safe and can sell up.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks Foggy, I may have dropped a clanger, the house was put on the market last week. There has been nothing from the estate agent since.
When we bought this property 18 months ago it had been on the market over a year! Property in rural Spain can take years to sell! I can only hope that we get a positive result for the f&f before the tourists start arriving this summer. I hope to be able to write to Iva.org tomorrow to get the ball rolling!
Ok after discussion with my brother in law and a long and anxious wait over the bank holiday weekend for his bank to deal with issues of money moving in his accounts my bro in law has said he can gift me (loan) £6100 as a full and final offer to settle my Iva.
My Iva is over 6 years (in lieu of equity) paying back £7200 of £23500 debt.
I will have paid 7x £100 by end of June possibly £900 by meeting so would you suggest £6100 is a fair offer? I am on a pension and so no major increases likely and my wife doesn’t work either as she has to look after me because of my limited mobility.
One final issue is a debt recovery agency seems to be dealing with the debt I have with one of my creditors. I informed my IP when they emailed me around Easter and have heard nothing since. Might they prove a problem at the variation meeting?
I want to get your feedback and suggestions before writing to IVA.ORG
Well the £6100 will get them pretty close to the figure they would be looking at over the next 5 and a half years, so, from that perspective, it is a good offer. Also, regular payments of the order of £100 get largely eaten up by admin and time costs, so a lump sum will be beneficial to creditors as opposed to the IVA continuing 'as is'.
This debt collection agency are as bound by the IVA as the original creditor, so have nothing to gain from being awkward, but, at the end of the day, we have no way of knowing how they will react until they cast their vote.
Best of luck.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Ok so this morning I received the variation documents to electronically sign. The creditors meeting is set for 27/07 which is actually my birthday so it could be the best birthday or the worst!! The other unfortunate thing is that the 27th is the day before I make a payment. I was hoping to make at least two payments before the meeting.
One question I have though is, the supervisor wrote that if the offer wasn't accepted then she may have no choice but to end the the IVA. What does that mean? Would I be made bankrupt? Is this a normal circumstance?
Thanks as always for your advice.
