F&F Advice

[woolybully]

Hello All.
Having read through the discussions on here (and frying my brain) I thought I would ask for advice on F&F settlements.
My parents have asked me to see what would be required to settle the IVA with a view to making an F&F payment.

The unsecured debt was c.£33k and I am 3 and a half years into it. I was paying £139pm due to being the only person working at home but now my wife has a part time job the payments have leapt to £313pm. I have paid in over £2k in overtime in recent year so have paid around £8.5k against an original IVA contribution estimate of £14.5k.

There is an equity release proprtion of that estimate which at the time of set-up was £6.5k. I understand my equity will have increased now with years or mortgage payments, house price changes, and only having 9 years remaining on my mortgage.

I had considered looking at a £9,000 offer for F&F but have no idea whether this is adequate or not so haven't taken the plunge. Would anyone be able to advise?

Thanks.

[Foggy]

A F&F is based upon what the creditors would be getting should the IVA run it's course, in this case, assuming 18 months plus 12 in lieu of equity, we would be looking around £9390.

That increase seems one hell of a leap based on a part time wage now coming in .... are you with Payplan ?

Anyway --- I would go in with an offer of £8k.

[Lisa Thomas]

I agree with Foggy - that's if you have 30 months to go.

If you can prove no/nominal equity and the 12 month extension will not apply then offer c£5k on the estimated 18 months remaining.

[woolybully]

Thanks for your replies all.
My concern was the level of equity as I know that the equity level has increased since the setup of the IVA in 2013.
Would the equity increase affect any F&F offer or can I just base it on their original estimate?

[Foggy]

Equity level will not effect the F&F amount, apart from the fact that if it is less than £5k you won't need to factor in an extra 12 months payments.

[Lisa Thomas]

If you have less than £5k equity you have 18 months to go.

If you have more than £5k, regardless of the level, you have 30 months to go.

[BobBaxter]

Posted in the wrong location.

[kallis3]

Hi,

Good news - I would state though that the payments between now and then be deducted from the final amount.