If you want to offer a full and final settlement it is up to Payplan to propose this. You have valid grounds for this and it is up to creditors to accept or reject the offer and not for Payplan to prejudge. If NRAM are also unsecured they may well have a large vote and could be happy to accept a F&F now with a switch to repayment mortgage immediately afterwards.
thank you for reply michael, payplan have said as I can afford payments and are not in hardship they wont put forward F&F I've around £10,000 to pay to make div offered at beginning of IVA but can only scrape together around 4-5K for F&F, I'm more worried now about them saying they'll extend IVA with reduced payments, they've said if you can make payments of £100 per month they can reduce and extend IVA, how long can they extend it for? If I offer £5000 thats nearly another 4 years worth of payments at £100 they can't extend it that long, I'm annoyed that they have to wait untill I'm forced back on to repayments rather than putting forward F&F now.
Hi deepinit - Payplan are being paid to supervise your IVA and represent you to your creditors. If you have a new proposal to offer them, Payplan should put this forward and support you. You have sound reasons why you are looking at this option and you now have the offer of a lump sum. If the likelihood of NRAM moving to repayment is strong then you are trying to pre-empt this now to protect your IVA rather than be faced with a sudden reduction in disposable income and be at risk of your IVA failing. I can understand they may want to wait to see what happens before proposing it but this then becomes a timing issue and variations can take a while to be accepted.
Clarify with Payplan what the terms in your IVA are, are you bound by a final dividend? How long would they propose extending it for.
Bottom line is an IVA is between you and the creditors - Payplan are there to administer communcation and instruct as required to maintain the legal arrangement. The creditors make the ultimate decision based on what they are presented with so make sure Payplan put forward a good, well presented and credible proposal for you to give you the best chance.
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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I have just emailed payplan telling them that I would like to start process I've spoken to Nram and my payments rise by £508 and my IVA payment is £505 I wont be able to make both in sept when they are due
As Tina says you are trying to deal with the problem before you go into default so Payplan should put this offer forward. You can continue to pay the £505 until September but that would be included in the variation report and is easy to do.
Thank you for your advice payplan haven't replied yet so I'll just have to wait, I've asked for what paperwork they'll need off me for a F&F so at least i can get that sorted
Well I'm still waiting for payplan to reply to my email, sent another one today, I'm just wondering where I stand with asking them to put forward a F&F, do they have to put it forward as it seems they are dragging it out I just want to get an answer off them, can I demand that they put the offer forward or can they refuse? The reason I'm asking is when I ring I'd like to be able to counter the reason and waffle they may give for not putting it forward, I'm now having sleepless nights worrying that if it takes ages to a meeting sorted my IVA could fail due to me being unable to make payments due to increase in my mortgage payments.
They cannot refuse to put your offer forward, however they can give you their opinion on whether they feel the offer will be accepted or not, a lot will depend I guess on how they word the variation, ie, they need to word it to present the best case possible, this really is why you need them on side to agree to the f and f
In my variation is the phrase "I recommend acceptance of this variation". I guess they are also entitled to phrase the recommendation differently! As Lem says, you do need them on your side to put a good arguement forward.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I thought that would be the case if they put F&F forward I'll be around £3200 short of what was proposed at the start of IVA, they will also be getting it 18 months early so fee's can be taken off whatever that may add up to, they just seem to be dragging it out and don't want to put it forward untill aug/sept but by sept I won't be able to afford mortgage and IVA so could be forced into BR if it takes 3 months to set up meeting for F&F.
Thank you for all your advice I've spoken to payplan and they have now decided to go forward with the F&F now rather than waiting till sept, I sometimes wonder if they ever listen to you on the phone as the reason was because I'd still have to make my payments in july and aug, which I've never said I wanted to miss I soon as I agreed that all payments and overtime would be paid up to sept they said "can't see a problem putting this forward now" we'll start ball rolling, so hopefully I'm in the final stretch of my IVA
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