Is it normal practice for an IVA company to ask you to pay the full and final settlement money into a holding account before they ask your creditors to meet?
Cleardebt have told me that they can't propose a full and final settlement to my creditors within having the money first, but I have provided them with a letter stating where the money is coming from along with a bank statement showing the funds available. I need advise here as I don't see why they need the funds first when they can see they are there.
Hi, I'm not sure of this but would think it's likely so they can pay over the money asap assuming the f&f is accepted, however I would state to get reassurance this will be returned asap in the unlikely event of a rejection to the F&F.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Some firms do work this way, maybe having got offers accepted in the past and then the funds were never forthcoming ( just a guess). It also adds weight to the offer, but, if you do pay this over before the meeting insist that the money is held to your order and emphasise that the funds are for the purposes of a full and final only and, in the event of the offer being rejected, are to be returned to the third party offering then monies without any delay.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I didn't have to do that with mine - I made the payment on the day the F&F was approved. The company was aware of where the money was coming from.
Cleardebt do monitor this forum so hopefully David Mond will reply.
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I think proof of funds would be enough to then propose a full and final offer, I wouldn't be a comfortable third party having to pay funds over before the offer had been accepted
We ask for funds in F&F which are held in our Clients Account.
We advise creditors that we hold such funds and following approval of the settlement the funds are then transferred into the IVA.
If the F&F offer is not accepted the funds are returned without any deductions.
In my experience creditors are more comfortable in approving once they know that the Supervisor has the funds in a separate Clients Account which can only be released either into the IVA or returned to the fund provider.
I hope this clarifies the position of ClearDebt.
Regards
David
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Not necessarily but it makes the offer more attractive and IP able to close your case quicker if creditors accept as no delay in waiting for funds. It should mean that you receive your CC very quickly so I would complaint if that isn't the case.
