Taking low payments and offering Full and final offer

[Jake1195]

Hello,

We currently within an IVA, however we are struggling to make our agreed payments due to a change in circumstance.

We have reached out to creditfix who have offered us lower payments but this will extend the length of the IVA.

However we are currently in the process of raising funds to make a full and final payment. If we where to accept the lower payments extending the IVA will this affect offering the full and final payment? Such as this being accepted or having to offer more, even though we would be paying the same over time.

Or are we better leaving the IVA at the current payment without lowering until we are able to offer the final payment ?

Thanks for your time.

[Foggy]

A full and final is based on the remaining number of payments at the rate paid at that time, so any offer now would be calculated at the current rate and any offer after the reduction at the new rate, but over more payments.

Assuming CF have used the usual clauses in the IVA they should be able to reduce by up to 15% without recourse to creditors or to needing to extend --- read your proposal carefully. This is, however, at their discretion and, dare I say it, would lose them some fees.

[Jake1195]

A full and final is based on the remaining number of payments at the rate paid at that time, so any offer now would be calculated at the current rate and any offer after the reduction at the new rate, but over more payments.

Assuming CF have used the usual clauses in the IVA they should be able to reduce by up to 15% without recourse to creditors or to needing to extend --- read your proposal carefully. This is, however, at their discretion and, dare I say it, would lose them some fees.

We currently pay £253 a month and have 30 months left (£7590 to pay).

Would an offer of £7k be taken seriously as a way to just end the IVA and not extend it out even further?

[Foggy]

We currently pay £253 a month and have 30 months left (£7590 to pay).
Would an offer of £7k be taken seriously as a way to just end the IVA and not extend it out even further?

With any other IVA provider I would say that an offer of that order would be looked on favourably. Arrangements run by CF are less predictable.

[Jake1195]

We currently pay £253 a month and have 30 months left (£7590 to pay).
Would an offer of £7k be taken seriously as a way to just end the IVA and not extend it out even further?

With any other IVA provider I would say that an offer of that order would be looked on favourably. Arrangements run by CF are less predictable.

Would you recommend a higher offer/the exact amount we owe given that it's CF we have to deal with. We were with the FWG who were amazing, we wish we would have done this with them!

[Foggy]

CF do tend to push for the full amount of remaining payments. They did, at one time, also ask for the variation meeting fees of £300 on top, but no-one has mentioned this happening of late.

It is not my place to recommend an amount for, what is, after all, your offer, nor, indeed, it is CF's. However, the higher the better, really. As I have said before: I have seen low offers accepted as well as high offers refused -- it is truly in the lap of the gods / creditors.

[Jake1195]

CF do tend to push for the full amount of remaining payments. They did, at one time, also ask for the variation meeting fees of £300 on top, but no-one has mentioned this happening of late.

It is not my place to recommend an amount for, what is, after all, your offer, nor, indeed, it is CF's. However, the higher the better, really. As I have said before: I have seen low offers accepted as well as high offers refused -- it is truly in the lap of the gods / creditors.

Thanks again for you help. We just wanted to hash out our sums to see if this makes sense to you.

We've looked at our original IVA proposal as suggested.
Original total debt : £22,456
Original payment plan : 60 months totally £17,082 (3 months of a higher payment then 57 months of £277)
We have since paid more a month than that due to pay increases (but now pay decreasing is the reason for us doing this f&f)
We have paid in total to date: £11,249
So technically according to the original agreement we have £5833 left to pay.
If we offer slightly more than that is our maths sound i.e. do credits look at this the way we do and go off the original IVA proposal amount?

Thanks!

[Foggy]

No, you cannot rely on the original dividend proposed, the figures need to be based on remaining payments due. The extra payments you have made, whilst gaining you 'brownie points', are simply a bonus for the creditors. But do cash in those brownie points by labouring the fact that they will, in the end, be getting more than was originally envisaged.