How much should my Father in law offer for a f&f settlement ?

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Sharon2018

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Post by Sharon2018 » Fri Jul 11, 2014 4:13 pm
How much should my Father in law offer for a f&f settlement. We have 46 months left of a 6 year IVA. We have a equity clause with a 12 month extension if we are unable to remortgage in the 5th the year. My Father in law wants to make an offer but I dont know what to suggest given the equity clause, there is no knowing what equity would be in our home in 4 years, but even if there was I'm told it is highly unlikely we would get a remortgage anyway? Please help, any advice would be much appreciated.
 
 

Foggy

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Post by Foggy » Fri Jul 11, 2014 4:41 pm
Generally arrangements make provision for a 12 month extension in lieu of equity release, if a remortgage cannot be obtained, so an offer should be based upon the remaining payments plus 12 multiplied by the monthly amount.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

Sharon2018

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Post by Sharon2018 » Sat Jul 12, 2014 8:16 am
OK, so I've talked it through with my FIL and we currently pay £672 a month, with 46 months remaining and 12 extra months, that comes to around £39,000. My FIL suggested he could offer £33,000, is there any chance this would be accepted as F&F or would it have to be the full amount?
 
 

Foggy

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Post by Foggy » Sat Jul 12, 2014 9:36 am
I would think that would be a fair offer (maybe even £30k -- but you don't want to push your luck). Remember that the creditors benefit too, from having the cash in a lump, rather than dribs and drabs, the IP has, ultimately, a little less to do and a "bird in the hand is worth two in the bush".
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

Michael Peoples

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Post by Michael Peoples » Sat Jul 12, 2014 2:28 pm
You could offer £30k and if rejected there is a little bit of wriggle room.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
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