Full & Final payment offer - GT resistance

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Nicola.st

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Post by Nicola.st » Mon Jan 26, 2015 2:33 pm
Hi there,

We are 3 1/2 years into our IVA.

My husbands employers offered to loan us £10,000 to offer as a full and final settlement of the IVA.

I worked out all the figures, and took into account payments into a 6th year, as a remortgage is unlikely. The figure including PPi claims was £20,733 after 72 months

I worked out that with our offer would give £23,443 after only 45 months.

Given that their woruld be more money in the pot 2 years early we really hoped that the creditors would accept the offer.

After finally hearing back from Grant Thornton, they have said they will not even put our offer forward.

I have been told by them grant thornton, that going by our income and expenditure form, if they put our offer forward the creditors would expect our payments to raise by £300 a month! and so they would want £16,000.
I told him there was no way we could afford an extra £300 a month as we struggle with what we pay already, and that we could not be lent any more money.

And so it seems that is that, they wont even put forward our offer..... but they are not upping our payments.

After I got off the phone it actually felt like a threat.... if you put the offer forward you risk your payments going up by £300.

My husband rang them and said well we will take the risk, we want the offer put forward but they are refusing. My husband then asked if this meant they are going to put our payments up.. and they have said no, because they work on a different allowance system to the creditors.

Does this sound right? if an IVA is settled early do grant thornton loose out on monthly fees? Is it in their interest to not have full and final settlements accepted?

I feel like they are always giving resistance to full and final payment offers.. when I rang last year trying to get advice from them about selling our home and using equity to pay iva of, she wouldn't even entertain the idea or give me the final figure.

any advice or similar experiences would be most appreciated.
 
 

Michael Peoples

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Post by Michael Peoples » Mon Jan 26, 2015 2:48 pm
It does seem a bit odd and if you insist they do have to put the offer forward. If your surplus income is showing a higher amount than you are paying this could be because your payments can only increase by 50% each year of any additional income. If creditors reject the variation then the proposal reverts to the original IVA and they cannot just whack your payments up.

Most IVAs these days work on a percentage basis for fess so while GT may lose a little supervision money the variation fee and reduced workload would more than compensate for this. It does seem strange so go back to them again and ask to speak to someone more senior as perhaps there is something about your case that they know but we do not.
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
 
 

Nicola.st

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Post by Nicola.st » Mon Jan 26, 2015 3:03 pm
Thank you for your reply Michael.

Our suplus income showed £106, - we pay into the iva £270, so our surplus income showed less than what we currently pay into the iva.

They said they we taking into account my husbands cigarette expenditure, and said that our food and house hold expenditure was 'too much' I appreciate the cigarette expenditure is a non essential but they try feeding/caring for a family of 5 in london!. Even so I did think it was our right to have our offer put forward.

I think we will speak to them again. Thanks
 
 

Michael Peoples

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Post by Michael Peoples » Mon Jan 26, 2015 3:22 pm
You are normally allowed £60 per month for smoking and not all creditors reduce this figure. As to the other expenses if you email me I will forward a copy of the current guidelines so you check and see whether your allowances are overstated and also if they are all on the expense list.
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
 
 

Nicola.st

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Post by Nicola.st » Mon Jan 26, 2015 4:02 pm
Thanks for that information Michael. can you give the your email please as I tried the 'email poster' link but it says it has been suspended because of spamming. Thanks
 
 

Nicola.st

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Post by Nicola.st » Mon Jan 26, 2015 4:05 pm
I'll email enquiry@mccambridgeduffy.co.uk with F.A.O Michael Peoples.

thanks
 
 

Michael Peoples

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Post by Michael Peoples » Mon Jan 26, 2015 4:14 pm
Click on my name Nicola and you will get my direct email address.
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
 
 

Adam Davies

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Post by Adam Davies » Mon Jan 26, 2015 6:10 pm
Hi

I think they are duty bound to put your offer forward

Try writing to your listed IP with full details of your offer

Regards
Andam Davies
 
 

MKM76

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Post by MKM76 » Wed Jan 28, 2015 1:48 pm
I too just made a F&F offer to GT and the way they spoke gave me the distinct impression they didn't want to go down this route (which I do understand)

My figures are;
Orig Debt £23000
Total to pay over 6 years £10700 (no equity)
GT confirm balance after 29 mths is £7530

I have a friend that will pay them £7000 which I hope is a reasonable offer. I am not trying to get out of paying what I owe - I simply need to be released as my wages are reducing and I cannot pay them £180 and live on whats left - done the I&E and it leaves me -£150 per month and its seriously affecting my relationship with my 3 children(they live with their mother) I have no money to spend on them - I used to always pay for their football hobbies etc

Its also causing massive stress between me and my ex as I have always supported her financially for my children above and beyond maintenance and now I cant its affecting her also.

Fingers crossed they accept
 
 

Michael Peoples

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Post by Michael Peoples » Wed Jan 28, 2015 2:09 pm
Best of luck and it seems a fair offer to me. I cannot see why GT would be reluctant to put this forward as it seems a good deal all round.
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
 
 

MKM76

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Post by MKM76 » Wed Jan 28, 2015 2:29 pm
Thanks - can you give me any advice as to how long it would usually take to hear back from an offer. And if accepted how long the procedure would take ?

I am reading about things being delayed for some people due to PPI claims but GT put me in touch with a company over 12 months ago that checked and I got a small payout (which I didn't even know I was entitled to) which GT had from me so hopefully haven't got anything else.

Also, if they accept and its settled and my payments end am I then free to live my life financially as I wish.

By that I mean if for example my job / earnings changed or I wanted to contemplate the sale of my house. Things that are long term thoughts and ideas but be useful to know where I stand.
 
 

Michael Peoples

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Post by Michael Peoples » Wed Jan 28, 2015 2:42 pm
It is normal to give creditors four weeks notice of the variation meeting but I canot say how long it will take GT to draft the variation. Once it is accepted your payments will cease but there may be delays with the PPI issue but you just need to keep the pressure on. Until you receive your certificate of completion you will face restrictions so hopefully they can get it sent out quickly.
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
 
 

MKM76

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Post by MKM76 » Wed Jan 28, 2015 3:17 pm
Thanks for the info - I assume they will issue me with paperwork to explain what my restrictions are ? I have done everything right so far and don't want to do wrong unknowingly.

Looking forward to being free but feeling extremely anxious :0/
 
 

Nicolad8752

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Post by Nicolad8752 » Wed Jan 28, 2015 3:29 pm
Hi MKM76.

Could you inform me of what financial evidence GT requested from you in order to request your Full and final settlement.

I ask as I have enquired this with GT who has now sent me a booklet to fill out with all my financial income and expenditure that also states that all my 12 months wage slips and latest p60 need to be sent with they have had already as my yearly review was only done last September. but the booklet also states that further information will be required if a creditors meeting is to be set such as bank statements, benefit letters if applicable and receipts or bills detailing the amounts I pay on my household bills if not by direct debit through my bank. It all seems more intense than when I set the original IVA up over 4 years ago.

How have you submitted your offer and what has been requested from you at this stage, thanks. Nicola
 
 

Nicola.st

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Post by Nicola.st » Wed Jan 28, 2015 3:42 pm
GT finally agreed to put our offer forward. They have told us the process with take at about 2 months.

They have now arranged for a courier to collect evidence documents, then arranged a telephone interview so they can gather details to write their report.

They say they then aim to complete this within two weeks.

Once complete A copy is sent to all creditors and ourselves. They then have 28 days to respond and a fixed virtual 'meeting' date is set where all responses must be faxed or emailed by.

Then they say they can either accept, accept with modification or reject.

I assume this is all the same process so they should tell you the same. Good luck with your offer too.




font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by MKM76

Thanks - can you give me any advice as to how long it would usually take to hear back from an offer. And if accepted how long the procedure would take ?

I am reading about things being delayed for some people due to PPI claims but GT put me in touch with a company over 12 months ago that checked and I got a small payout (which I didn't even know I was entitled to) which GT had from me so hopefully haven't got anything else.

Also, if they accept and its settled and my payments end am I then free to live my life financially as I wish.

By that I mean if for example my job / earnings changed or I wanted to contemplate the sale of my house. Things that are long term thoughts and ideas but be useful to know where I stand.
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