Reasons for FFS

[kandh]

I have just been reading some of the F&F posts by those wanting to finish them early and a reply by Melanie to one of them asking the reason why got me thinking.............

What reasons are valid ones for wanting to offer a F&F settlement? Obviously just wanting to get rid of it isn't a good enough reason?

I ask as my hubby is going to be doing this next month (fingers crossed) with the help of a friend who is going to lend him the money to do so. We have quite a few reasons why:

we live in married quarters but have to move in November as hubby being drafted elsewhere. We currently live in substandard MQ and so pay a reduced rent. When we move, the standards of the MQ will be significantly better so will have an increased rent.

Hubby has a son from previous relationship to whom he pays maintenance. This hasn't been increased for 3 years and son approaching secondary school age so needs to increase monthly payments.

When we move, hubby has 101 courses to attend, most of which are away from the family home (ranges from 2 weeks to 3 months). Because of this he will have to pay food charges at the place he stays (taken straight from wages so no say). I dont think he has to pay accommodation fees. There is also the aspect of additional travelling expenses.

Hubby is in January being drafted to his front line tour of Afghanistan for 2.5 years. (obviously not there all the time, 6 months there, 6 months home etc etc).

Also, he got a pay rise recently but the down side to this is that the tax credits has been significantly reduced. Went from £175 to £42 [:0] which swallows up any payrise and more!

He is very keen to offer a F&F settlement for these reasons and that the fact that it is going to be a very stressful couple of years with the job and it will be much less to worry about for me on my own with the 4 children when he isn't here.

Is these good enough reasons?
Starting to worry a little now that they aren't good enough for the creditors? [:(]

[MelanieGiles]

Hi kandh

I would suggest that you have got a whole heap of good reasons there to want to effect an early settlement! Make sure that your husband's IP fully explains all of these points within the variation report to creditors.

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]

Hi Melanie. Crikey that was quick, thank you !!!

Phew! Cant help but worry sometimes. [:)]

Is there any particular reason why a good reason is required and just a case of offering a F&F just because you want to get rid of it.

[MelanieGiles]

Because creditors want to see that you are making best efforts to repay them as much as possible, and not just to get out of paying early.

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

[Adam Davies]

Hi
A full and final is much easier when you do not have the equity release clause,as in your case.
Good luck

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