Payments Whilst Waiting for F&F Answer

[Peasy]

Hi all,
This is my first post but will be posting some more very shortly including my IVA story. I have only 9 months to go on my IVA and I have made a full & final offer. If I continued monthly payments until the end it would be approx. 5k to go but I have offered F&F of £1500 which I think is a good offer as looking at figures from my IP, the creditors are getting 5p more in the pound than the original amount 4.5 years ago.
Anyway, since I sorted the offer out and now waiting for an answer back, I will have made another montly payment so if the offer of £1500 is accepted, will the payment be deducted e.g. monthly payment is £500, so would I then only have to give £1000 to go with that for the F&F payment?
Thanks in advance for your help
Lewis

[David Mond]

I personally don't think that your offer is big enough to be accepted. Creditors only have to wait 8 or 9 months to get 5k rather than now 1.5k.

To answer your question - it depends what was stated in your F&F offer as to whether the current monthly installment comes off the F&F offer.

[MelanieGiles]

I would hesitate to put forward that sort of offer when you are so close to finalising the IVA. What justification do you intend to present to creditors for paying them less than they are entitled to receive under the terms of the arrangement?

[David Mond]

That was the reasoning behind what I said.

[Peasy]

The agreed amount at the start of the IVA was 41p in the pound with a monthly agreed payment of £371.00. Since the beginning I have always paid the additional monies required when I earned more etc which is why the payment is now £541 per month. The IP looked at all the figures and I have actually paid more into the IVA up to this point than the creditors were expecting from day one which is how we came up with the offer of £1500 to end early. Would the IP not say they would not suggest the offer if they thought it was too low?? I can see the point about it being so close to the end of the arrangement but I am getting married soon and want my life back to start the saving in a big way. It has really worked out for me the last 4 years in the IVA and if I have to continue until the end in Feb next year, I will. I made the mistakes when I was young and got into the mess.
I'll let you know what feedback I get on the offer.

[MelanieGiles]

Does the £1,500 mean that creditors would get repaid in full? If not, then the additional monies you refer to had to be paid into the IVA in any case, so I do not see creditors letting you off at the end for the sake of it.

But I am not your IP - so if they think the offer is worth putting forward let them crack on. Let us know how you get on.

[Peasy]

Guess we'll see how it goes then. Will keep updated

[David Mond]

The agreed amount at the start of the IVA was 41p in the pound with a monthly agreed payment of £371.00. Since the beginning I have always paid the additional monies required when I earned more etc which is why the payment is now £541 per month. The IP looked at all the figures and I have actually paid more into the IVA up to this point than the creditors were expecting from day one which is how we came up with the offer of £1500 to end early. Would the IP not say they would not suggest the offer if they thought it was too low?? I can see the point about it being so close to the end of the arrangement but I am getting married soon and want my life back to start the saving in a big way. It has really worked out for me the last 4 years in the IVA and if I have to continue until the end in Feb next year, I will. I made the mistakes when I was young and got into the mess.
I'll let you know what feedback I get on the offer.

If your IP was party to the offer you are making then that should be fine especially as to the "extra" you have been paying.

Let us see what happens - I am sure they will accept the advice of your IP. Good luck.

[Peasy]

Just a quick update,

The variation meeting is on 12th June.
I also asked for any othe rupdate when I spoke to my IP and 6 outof my 10 debts were sold to max recovery (I think that was the name) and they have already voted in favour of the offer. What happens in a variation meeting?

Thanks
Lewis

[kallis3]

It's exactly the same as a normal creditors meeting Peasy, so if you get enough votes, then it will go through with no problems.

[Peasy]

Variation meeting tomorrow!! It makes typing this message difficult with my fingers crossed!!

Had another update today, not 7 out of 10 have voted in favour of the offer.

[kallis3]

Good luck for tomorrow - I'm sure it will be fine and that you will be debt free tomorrow.

[wonder]

Good luck, looks like it will be passed then, fingers crossed.

[Vickilou28]

Good luck! I have my fingers crossed for you! [:)]

[MRBLUESKY]

all the best for today.