Possible F&F opportunity

[Robbus]

Hi all,

First post here, so a bit about my IVA, I started paying in February, £132/month so a total of £7920 over the term is expected. I've paid three instalments (£396) plus two other payments, one of £210 (non-personal injury part of an accident claim) and £820 (part of yearly bonus), so that totals £1426. All very straightforward and I'm happy with the arrangement.

The only other thing is that one of my creditors has sold on my debt

Yesterday though I was told (happily I should point out) that I'm redundant as so I'm going to receive a decent lump sum. Light bulb moment, can I end the IVA early? Fingers crossed! The things I'm wondering about are; what amount to offer and is my IVA to young for a F&F offer to be taken seriously?

On the sum front, I could offer maybe up to £10000 meaning my total contribution would be £11426 which is £3506 over the expected, however reading on the net it seems people are often offering slightly less than the expected total. Naturally the more money I can keep hold of the easier life will be as I look for a new job, so I was wondering about a low offer of £6494 which with the £1426 already paid would meet the expected total for the agreement.

I'm also wondering about the debt that was sold, presumably the company that bought the debt must have known it was subject to an IVA and therefore would be unlikely to realise more than the dividend agreed with my original creditor, so I guess they paid less for the debt than the amount my creditor would receive? Just wondering if they'd be the first to put up any objections at the creditors meeting? On that front, I presume that for a F&F offer to be accepted, all the creditors have to agree to it rather than the majority when the IVA was created?

If anyone can offer some advice on where to pitch my offer I'd much appreciate it.

Also any thoughts on whether a F&F would be even considered due to the short time my IVA has been in place would be very helpful.

Cheers,
Rob

[ClareSilver]

An F&F offer will be considered at this early stage, however you should be offering 100p/£ if you can. Is the amount you will be paid in severence more than your total debt level? If it is, then you will most definitely be looking to offer 100p/£ plus fees and possible statutory interest (currently 8%). The creditgor who has purchased the debt (most likely to be Max Recovery or Eversheds) are bound by the terms of the IVA. Your offer will need to be approved by 75% of your voting creditors.

[Robbus]

Thanks for the quick reply. Unfortunately my severance isn't close to being able to offer 100p/£. My debt is just under £40,000 so my dividend is around 13p/£.

The debt was bought by Eversheds.

Cheers,
Rob

[ClareSilver]

Ok, that puts a different slant on things. It's likely that you will need to pay your severence payment into the IVA for the benefit of your creditors. You can keep up to 6 months of the severence payment whilst you look for work, however as the payment is not going to make 100p/£, it's highly likely that you will need to continue with your payments into the IVA once you've managed to secure a new job. The best way forward is to speak to your IP. Many creditors are not keen on variations within the first 12 months of approval unless you can offer 100p/£.