Problem with F&FS

[kandh]

As you may be aware, we are currently in a position to go down the FFS route.

Contacted hubby's IP who has sent a letter with suggested offer and a form for our third party to fill in.

It is this form that has now caused problems. My friend who would lend me the money has said that she is not happy filling out the form. All she wanted to do was an informal agreement between me and her and thats all she wanted to do, without any forms etc etc. The form asks for her name, address, nationality, NI number and a copy of passport/photo driving license and a copy of recent untility bill.

She is still willing to lend me the money but flately refuses to fill out the form. I obviously do not want to put a strain on our friendship.

Do you think that I could become the 3rd party for my husband (his IVA). In effect I am anyway as its my friend who is lending me the money to give to my husband. We had already told his IP that the money was coming from a third party friend. Could we contact the IP again and ask whether instead of my friend, I could offer the money instead and thereby fill out the forms myself?

Any other suggestions welcome.

[MelanieGiles]

I do not feel that this information is strictly necessary, but your IP is obviously wanting to check out that she does actually exist and that her offer is therefore going to be honoured. One way round this is for your friend to lodge the money with the IP prior to the variation meeting, on the strict understanding that it is to be returned if creditors do not accept the offer. I feel that this is better than now saying the money is coming from you personally, as the IP will still need to know where the original source is.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[kandh]

I did suggest just sending a cheque direct from my friend when we received the form yesterday but she didn't feel comfortable doing this either. [:(] I think that she just wanted hand over the money to me without having any other contact and I dont think I will be able to persuade her otherwise without

Oh well, I think maybe finishing his IVA just isn't meant to be. [:(] [:(]

[Storm]

I am not sure of the position re anti money laundering / proceeds of crime requirements.

Is your friend suggesting a brown paper bag or that they would pay you with a cheque ??

[kandh]

Goodness me! Nothing like that!

My friend has supported me all through our debt problems and the subsequent setting up of the IVA and after one of our many late night talks, she offered to pay the balance of the IVA off and I then pay her back. She just feels that it was to be a private affair purely between us and now feels uncomfortable giving out her personal details for this purpose which I can fully understand. If I really really pushed, she may do this but it is not something that I wish to puruse. I value our long term friendship more. If she decides to in the future after thinking about it, then it is her decision but I will at least have the knowledge that I have not done anything to pressurise her.

[Adam Davies]

Hi
I am sure that the info that the IP requires is due to the anti money laundering legalisation[as Storm states] as any transaction over 1k has to be checked.
It would be a pity to have the deal scuppered because of this and would think that your idea of the friend giving you the money and you being the third party as acceptable just so long as you explain to the IP that your friend does not want any paperwork etc.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[kandh]

Thanks Andy for replying. I was an emotional wreck yesterday [:(]and took a couple of comments made earlier to heart and didn't feel as if yesterday was the right time to reply.

Today I am not so emotional and a lot more relaxed [:)]. We rang our IP this morning and managed to clarify a few things. With regards to the form, apparently they just keep it on file. The information isn't passed onto anyone else etc.

We have also been advised to stop our direct debits with immediate effect in view of our impending variation meeting. Is this normal? Their letter was dated 1 Aug so it was too late to cancel Augusts payment (comes out on 1st) but will obviously be able to cancel Septs payment (hopefully given the 30 notice, the meeting would be held around the 2nd week of Sept.

We were advised that if the variation meeting does go pear shaped [:0] then we would only be one months in arrears and they would know the reasons and it would be ok. Hopefully it doesn't!

Anyway, until last night, only my hubby, myself and my close friend were aware that we had an IVA (apart from you lot and those looking on the register of course [;)]). This obviously made it very hard emotionally for us not being able to speak to anyone. However, we have just bit the bullet and told his mum. (not all the gory details, just the very very basics). Probably one of the best things we have ever done as she has now offered to help us (and is happy filling out the form and providing copies of passport etc etc!!!!).

So, she is popping everything in the post tomorrow and hopefully as soon as the IP receives the form, they can then call the meeting.

Obviously I was grateful to my friend for initially offering us the the money although I still feel a little deflated but I will get over it. However, it actually did us a really good favour in the end and gave my hubby someone other than me to talk to. [:D]

So............. we owed £62,000. Dividend was 33p in the £. We have paid in the last 33 months, a total of approx £16,000. Our FFS figure is £10,700 (including the payment due for Sept) so we are borrowing £10,200.

Just got to sit tight and wait now for the meeting. Roll on September [:D]

xx

[MelanieGiles]

All's well that ends well, so they say! And personally I would never advise a client to stop making IVA payments until the creditors had accepted the variation? This does not make sense, as you will not start to make the repayments to your relative presumably until the offer is accepted.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[kandh]

From what we can gather, they have given us a settle figure of £11,200 as of 1 August but they cannot confirm yet whether this includes August's payment that was collected by direct debit on the 1st. Having worked it all out, I dont think it does. However, we can ring up next week and get a revised figure (hopefully £460 less)

We were advised to cancel Septembers payment (again due to be collected on 1st) as this would mean we would overpay by £460 (ie the revised figure plus that months payment) Apparently it is easier and less complicated if we just pay the revised figure. So we only make the one off payment of £10,700 made up of £10,200 ish from MIL and £460 from us (being the September payment) If that makes sense??

Obviously this is all on the assumption that the variation is successful. If it fails, then obviously we would pay Sept payment straight away but unless the meeting is held before the 9th we will then have paid late for that month. Would this then be classed as one of our 3 allowed missed payments and would our IVA still be classed as running satisfactorily?

Re repaying MIL, we will start repaying this wef from 1st October.

[Adam Davies]

Hi
Good luck to you.
I have to say that I am baffled,like Melanie,as to why you have been advised to stop your IVA payments before the variation is agreed.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp