Variation Meeting

[vlc1507]

Hi, Have a variartion meeting booked for today at 2pm. Hoping to propose a f&f offer, which a friend has agree to make for me as regularly unwell from the stress of it all and just want an end to it.
What can I expect from this meeting? what will they need to know or want from me. No info has been forth coming from GT except to fill out current expenditure sheet.
Would just like to be a little prepared for later.
Any advice on meeting or f&f would be great, thank you.

[kazzafunk]

Good luck for today!

You should just here fro GT as to whether it has been agreed or rejected.

Please let us know how it goes.

[plasticdaft]

Fingers crossed here!

Paul

[vlc1507]

Had variation meeeting bit of a strange outcome. Advised that as we can still afford payments and have kept up to date with payments till now, if we apply for a variaton to settle with a f&f they may reject and increase monthly amount and or increase the length off iva!
Suggest we increase offer but there is still a chance it wont be accepted although would recieve above the original amount back.
now not sure wether to go ahead with f&f offer or not. Any advice would be great thanks

[Foggy]

If your income hasn't increased or expenses decreased I can see no reason that the creditors would ask for an increase in payments or extension.

A lot will depend upon how the variation is presented so as not to give the creditors that idea or opportunity.

As long as GT don't try to over complicate things and simply present a variation in these terms:

Motion 1: that the creditors accept the lump sum as proposed in full and final settlement of the arrangement. Or,

Motion 2: the creditors reject the lump sum offer and the arrangement continues as originally agreed.

I would emphasise that this is my untrained line of thought and it would be prudent to await an expert's opinion

[vlc1507]

Thanks foggy no increase or decrease seemed to be based on our expenditure figures on some items being over the standard allowance. We 0we 6300 14 payments x 448. A friend has offered a f&f to a maximum of £8000. Should we offer the 8000? Or 6300? Or just stay as we are? Am confused to say the least!

[Foggy]

Assuming there is no equity clause to ponder an offer of £6300 will give the creditors all they signed up for -- and they get it a year early!

[vlc1507]

No mention has been msde in ref to equity so am not sure about this.

[Foggy]

Do you own your property, and, if so, roughly how much equity is there ?

[vlc1507]

We do own yes, not sure of equity. Owe 184000 on mortgage value am sure sure of but guessing around 240000.

[Foggy]

Yes -- that does complicate matters, as there is around £20k equity, which the creditors will want.

As a rule of thumb for F&Fs you need to add 12 months payments to the offer, which in your case would almost double the amount you consider outstanding!

So, on the premise, even £8k is a little shy. However, there is nothing preventing you from making the offer termed as couched above.

[vlc1507]

Oh I see whst your saying, probably need to be looking at an offer of 10,000 or above then?
why would the equity question not have been raised today? We have made 48 payments of the original 60

[Foggy]

It might have been overlooked, or the unspoken reason that they think the current offer is too low.

If the IVA were to be left to run, the equity would normally be addressed in month 54. I assume it has been mentioned in your original proposal and not left out entirely (in which case, mum's the word).

[vlc1507]

Yes it is in the original proposal. So guess £8000 is likely to be rejected then as total remaining payment plus 1 year in lieu of equity is 11,648. Would they consider 8000 or do you think there is not much chance?

[Foggy]

GT's reasoning is beginning to make more sense now, I am afraid (although they could have taken the trouble to explain themselves). As you can make payments and there is no immediate threat to the IVA continuing as originally envisaged I can't see the creditors accepting much less than the £11,648, bringing the dividend up to the amount they signed up for. For getting a lump sum early, they might drop to £10k.

But ... all that said, creditors are strange creatures and I have seen them accept really low offers whilst also rejecting dead certs !!

The way the offer is presented also has a big bearing and if GT think they are on to a loser this will be reflected in the energy they put into the offer.