I have been in my IVA for 20 months and have 40 months left to go. My debt when I entered added up to £26k and through the IVA it was reduced to £13,600. Since going into my IVA my circumstances changed for the better and every month I have paid in extra due to having to give 50% of anything over the agreed amount of earning, meaning to date I have paid in an extra £5k.
I now want to get out of my IVA through a Full and Final settlement and a family member has kindly said that they will gift the money to me. So to date I have paid £9,500 and the offer will be for £4k. Do you think this will be accepted?
I was also advised to put a letter together for the creditors regarding ther F&F but I'm unsure what to write..can anyone give some advise on this?
Just state that a family member has offered a lump sum of £**** to settle your IVA. This loan will only be made available if it is used to settle the IVA and that you will be using any disposable income going forward to repay the third party each month
Hi Jodie. Not wishing to put a damper on things, but, the creditors are expecting a further £9000 if you make the standard repayments ... more if you continue to pay in extra. so an offer of £4k might seem a little short without compelling reasons for them to accept.
Have you discussed this with your IP ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Although you entered with £26k and it was estimated you'd pay £13600, you could end up paying more than £26k as the IVA is only finished when time is up or 100% of original debt + fees is paid
The fact that things are changing for the better and you are paying more than planned, I can't see helping a full and final. If things were changing for worse the creditors may look on the offer differently, sorry sucks I know
Jodie.tr unfortunately or fortunately, depending on how you view your improved circumstances, I think you'll have a difficult time having a f & f approved, after all as others have stated, the creditors will seek to obtain their maximum funds returned to the best of your ability, and why would they settle for the minimum agreed of £13k when they stand a better chance of obtaining more return through the continuance of your IVA to its full term?
I always believe that "shy bairns get no sweets" so theres no harm in seeking a f&f, but at your next annual review, depending on how your extra payments/uplifts have been funded, you may actually find that your standard contributions could rise accordingly.
In any event good luck.
Last edited by Pennyless on Fri Jan 31, 2014 8:53 pm, edited 1 time in total.
I came into this world with nothing and still have most of it left!
Thanks for all your replies - much appreciated. I did wonder whether with my new circumstances, my F&F offer would be seen to be too low. It seems from your comments that this very much likely to be the case.
Are there any disadvantages to going ahead with the offer anyway? Presumably if it is declined and I want to make another offer in, say 1 years time, I will be able to do so?
What sort of offer do you think would be required for them to accept?
My IP have seen the offer and are happy to take it to the creditors but presumably they are unable to advise if the offer is likely to be good enough or not?
Another question - are the creditors made aware of my current income? Do my IP provide them with payslip figures etc?
There is nothing stopping you coming back with a revised offer later and, if your IP is willing to give it a shot ... why not try?
Make sure the offer is couched so that, if refused, the IVA continues on original terms.
They will, in all probability, do a full review for the offer, which will require sight of recent pay slips.
The creditors are expecting a minimum of £9000 over the course of the IVA, so an offer should be close to that ----- but, in the past I have seen creditors accept really low offers and also refuse really good ones !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
