I will shortly be in the position to offer a full and final. I will be offering the total of the remaining payments (3.5 years to go). In terms of context for the letter to my IP:
- I want to offer a full and final settlement as a family member has offered to pay off my IVA
- These funds are only available for a limited time for the IVA settlement and if the offer is rejected I will continue my IVA payments as expected
- I want to exit the IVA sooner hence my reason for making this offer given assistance offered from my family member
Can I also mention these two? :
- My current employer is in the middle of a redundancy programme and although I have not yet been directly impacted the future of my current job and therefore income is not certain
- creditors will get the required money returned sooner with less admin costs.
On a side note I have property clause but have massive negative equity (circa 80k). I intend to enclose a valuation and also a mortgage statement.
Keen on any other feedback you have in terms of what I should include.
Last edited by running99 on Thu Jul 09, 2015 7:58 pm, edited 1 time in total.
Thanks Foggy. Just to check, is it relevant ok to mention the job situation and redundancies with my employer? Or would they not take that into account?
Do offers up to the final amount generally get accepted and looked as positively? I mean if I was a creditor I would bite my arm off especially as they will get their agreed p in the pound from proposal.
Last edited by running99 on Thu Jul 09, 2015 8:22 pm, edited 1 time in total.
I would mention that your employer is in the process of rationalisation and that continued employment cannot be guaranteed --- on reflection don't use the word redundancy as that brings compensation to mind.
As you rightly say they will end up with more, in real terms, as a chunk of admin costs will be avoided. The same applies to your IP --- the same return for less work ... no brainer really.
That said, nothing is certain.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
You should make sure that the offer decreases each month as you make a payment. Some firms are slow at proposing variations and you could end up overpaying if they delay too long. There should be no delay as the I.P. has 21 days to call a variation whether R3 or Protocol mT&Cs are used but some firms ignore this obligation.
You could also try and reduce the overall payment a bit as creditors are getting their money earlier without risk so may accept a reduced amount.
Hi there. Foggy's advice is really helpful. I'm not sure what your figures are but I would offer c3 years worth as settlement. Michael's point is also a really good one to incorporate.
Sorry for radio silence, took a bit longer than planned for third party to have funds ready but today I posted off my letter of offer, my letter from my third party and bank statement to show evidence of funds.
I am offering the full amount right from now, a really good offer in hope it will be accepted as creditors are going to get their expected dividend 3 and a half years early. I will keep you all updated. I feel like I am getting excited but also very anxious as I have a number of creditor representatives that all need to agree.....fingers crossed. IP to draft proposal for me, then send to me then I assume date is set for meeting. I am hoping all this can be done in 4 to 6 weeks at best.
Given my offer I am thinking creditors will hopefully 'bite my arm off' for this and agree but perhaps there is a fly in the ointment as to why they wouldn't? I am hoping not.
Thank you all again for the advice, I have incorporated everything I have seen above - limited offer, only on acceptance, offer to decrease with payments etc.
Last edited by running99 on Mon Sep 14, 2015 9:07 pm, edited 1 time in total.
Had a bit of a setback today when I called my IP firm to find out there is a 4 month backlog to call creditor meetings. Cant believe it. Is this even allowed? I was hoping assuming I would be accepted that this could be all done and dusted before Christmas.
Michael, reference the 21 days R3 / Protocol can I quote this in hope it speeds things up?
I have just checked my terms and conditions and it mentions this.
On other thing to add is that because I work in financial services technically if my employer finds out about my iva my employment could be terminated. Should I mention this also as even more reason to accept my offer?
The second person I also spoke to yesterday who told me about the delay didn't seem to suggest my offer was a good one and that creditors would only accept even the same amount if there was evidence of my circumstances changing for the worse.
Anything that adds weight to your argument should be used.
There have been a number of companies coming up with the 3 month scenario around backlogs - seems like everyone is taking Lisa's advice and coming up with full and final offers.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
By all means mention the 21 days as specified in the T&Cs. You have obligations to the IP that you must keep otherwise they can terminate your IVA and your IP has obligations to you. Your contributions pay the wages of the IP nad their staff so tell them you want it done quicker as per the T&Cs and in particular because of your job. If you do not get any satisfaction you have the right to complain.
4 months is really not acceptable, especially as the aim of your offer is to settle the IVA early. It takes a couple of hours to write a report and post it to your creditors. Personally I would remind them (in writing) that they have 21 days to call the meeting and keep a record of all of this in case you need to make a formal complaint in due course.
