Reasons for F&F

[Nix2010]

Hi Everyone

I just wondered what everyone put down in their letter for wanting to pay their IVA off early? I want to pay mine off however the reason is just because my family have offered to give me a lump sum and I want to make an offer.

Thanks in advance

[kallis3]

Hi Nix,

I'll just bump this back up as I have no idea what you should put down.

[MelanieGiles]

You should confirm the identity of the person making the offer, confirm their identity with photographic confirmation, and evidence that they have the funds available to make the offer and within what timescale.

[bepto]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by kallis3

Hi Nix,

I'll just bump this back up as I have no idea what you should put down.

Just about to pen a letter for the same thing and find myself with the same dilemma. Is the fact that the money has been offered by a relative a good enough reason for creditors?

[menorca]

Hi Bepto, my sister helped us out with a f&f offer which was accepted so don't worry about the fact that it is a relative helping.Make sure though that the letter of offer is ONLY made on the basis of clearing the IVA and will only be paid into the arrangement for that reason only.
Good luck

[flaminskint]

I too have been asked to provide a reason in my letter to my IP.

Do the creditors see this letter?

The main reason is that I want to be shot of it if the opportunity is there like most people I would guess. I am however considering a career change which if I took the dive would see a decrease in my income meaning I would struggle to make my current payments to the IVA. Would they accept this as a good enough reason beings as I have the choice to not change my career and therefore control over my future income.

[clee123]

If I can Hijack this thread a year later!!
I have the opportunity to clear my IVA from a close family friend who has inherited some money and wants to help me pay it off. I am on my third year and have 30k in my property ( I too have the end property clause) but wonder what and how this could progress? do I offer the amount remaining? does my IVA company suggest an amount or do I? how does it work? I can't seem to find these questions and answers in other threads.
Thanks Guys

[Foggy]

Hi Clee -- you have to offer what you can raise -- you are making a "best offer" to settle. With that sort of equity you would have to factor in at least 12 months extra payments. So, your offer would be your remaining payments plus 12 multiplied by the current monthly payment.

If there are no mitigating circumstances that might jeopardize the creditors getting what they signed up for, then an offer near that above would be best.

You could try to reduce it a little based on the fact that they are getting a lump sum ( bird in the hand being better than two in the bush). But, push it too far and they could start salivating over the equity and a lot there will depend upon the exact wording of your equity clause.

Anyway, once you have decided the amount you ask your IP to put forward a full and final offer of £xx. Explain that the money would be coming from a third party and is only for the purposes of a full and final. Should the offer be rejected the monies will be retained by the third party and will not be available to the creditors.

[MelanieGiles]

Whatever offer you make now, the equity release provisions will need to be addressed, and if there is equity that you could raise now it is likely that your IP will want to see that included in the offer for early settlement.

[clee123]

ok, so I have spoken to my case handler today and she advised me to put (like above) that I have 22 months left of my plan and that I am unlikely to get a re mortgage so offer then 22 months, plus 12 additional months at my current rate £292.00 pm(that would be approx £10k) and see what they say.
am I right in thinking melanie that they would still want me to persue the equity release on top of the £10k ?
my house is worth £100k and I owe £69000, so the 85% ruling would be say £15k if I was to have obtained a mortgage (but then I wouldn't be paying the extra 12 payments of £292)
(I only have £5500 outstaning in my original plan - and my payments hgave increased substantially due to new job)
cheers

[Foggy]

If you increase your offer by the 12 months, make it clear that this is in lieu of any equity and the property is to be excluded from the arrangement.