Some FF advice please

[downandout]

Hi all i am looking at offering a full and final offer by drawing my pension at 55. I am also looking at the worst case senario should it fail. We have a total debt of £45000 and have made £17,848 in payments consisting of 37x£220 = £8360 and paid £2100 in overtime payments and a £7388 ppi payment, can anyone give me a ball park figure of what would be the maximum i would have to pay to finish the iva if the full and final was rejected and I used the lump sum to pay it up. We are offering £23080 as a FF as we will have the 6th year to pay and we have a property linked to the iva we are still trying to sell, the income from this is estimated as £15600 + 34 payments x £220 = £7480 = £23080 sorry to be a pain. Cheers

[kallis3]

Hi,

Check that you are not going to leave yourself short if you draw down you pension, even if you sell your house and have income from it you need to make sure that you can manage.

As regards the F&F being rejected, you would still be expected to carry on paying and possibly end up having money taken from you enough to pay off your total debts in full.

[downandout]

Cheers Kallis when I draw the pension I will still be working, the house is an inheritance that was declared. I am after the worse case senario if the ff failed, how much it would then cost to pay it off. As far as leaving myself short, I have a second company pension to draw at 65 which is equal to the one I am drawing, probably the best thing I have ever done was to join a company pension at 21. The common sense thing is to see this through for the next 3 years then draw the pension, I know, but we had been in a mess for probably 6 or 7 years prior to the IVA, and we are in more control now than we have ever been and if costs us our lump sum to be debt free after all this time then so be it, we just feel so tired of being tied to debt.

[Lisa Thomas]

If sums paid on basis IVA continues as normal are c£23k I would offer c£20k

[downandout]

Cheers Lisa, my initial reaction is that i am reducing my chances of the offer being accepted, but i will put that forward and see what happens, he says clenching his bum cheeks.

[downandout]

Had the night to mull this over, would you still offer £20,000 even though the larger portion is actually from the sale of a property and only £8000 is actual payments owed.

[kallis3]

Is the £8k the amount to the IVA? If you are selling a house the company may well want more towards the total debt outstanding.

[Lisa Thomas]

If you had sufficient to pay everything off in full with interest and say assumed 15% costs on top you would need to find c£70k to settle the IVA.

So far you have paid c£33k.

If you sell the property without a variation agreement in place first then all of the equity will be due in and the future contributions as you have identified.

Check whether interest is applicable in your case.

Then personally I would put forward a variation to ask creditors not to require statutory interest and settle at whatever figure will give them 100p/£ plus costs.

Your IP can give you this figure.

If their costs are fixed at 15% then the total sum would be c£52k less £33k paid = £19k.

Definitely worth putting in a f&F.

Do you want to sell the house or would you rather keep it...?

[downandout]

The house ( flat ) is a third share and the figure of £15000 was agreed at the outset and is probably about right with what it is on sale for. The arrangement state 15% costs, also states total fees disbursements must not exceed £15000 including vat, i assume this doesn't include interest.

[Lisa Thomas]

The interest point I referred to is on the creditor debt of £45k - that will be a separate clause somewhere in your terms.

[Lisa Thomas]

You could put a variation forward to sell you interest to the other 66% owners as f&f settlement...

[downandout]

If by the other 66% you mean my brother and sister, they don't have the money to buy my share.

[Lisa Thomas]

Perhaps you can propose an extension in lieu of this to keep your share.

What did your IVA say was to happen with your third?

[downandout]

Just that £15800 was the expected sum to be put into the iva upon sale, I had to sign some forms so they had a hold on the property.

[Lisa Thomas]

Did the joint owners have to agree to that? Bit strange that you agreed to sell a property they have an interest in...