They were needed in my case to show that going forward they would get no more from a 5 year IVA than the amount I was offering, but really would encourage you to speak to an IP
Was speaking with my partner last night about the whole situation regarding my debt and she came up with an idea which I want to mention on here and get some advice on.
She said instead of doing a f&f with a IP/Iva why not contact them directly in writing and offer amounts either pro-rota so stating in the letter equal amounts that will be paid to each creditor so they know they are getting a fair offer... Or, a letter as above but not detailing what I will be offering other creditors so I could try and offer less to a DCA for example.
I would,nt go there,if you want the Job doing right i would go through a IP,they are specialists,and no the right criteria to get Iva,s and F&f settlements accepted.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by MRBLUESKY
I would,nt go there,if you want the Job doing right i would go through a IP,they are specialists,and no the right criteria to get Iva,s and F&f settlements accepted.
Ok thanks mate.
Can I ask hopefully if my f&f settlement got accepted (so concluded straight away), i understand it will stay on my file for 6 years... do u get the competion letter straight away or after the 6 years?
Also can i start to try and build my credit up once i get the completion letter? e.g. mobile contract or high interest credit card like vanquis but pay of every month
You would get the completion letter a while after when all the admin is done and the loose ends tied up. It is a good idea once you've got your completion certificate to tidy up your credit files(make sure there are no defaults after your creditors meeting date) and then start to rebuild your credit rating. I got a Vanquis card which I pay straight away. I only put £30 per month max on it
I will try and give you a recent example of a case I worked on in order to give you a clue.
As you may know, the firm I work for organises both DMP's and IVA's, amongst other things. My clients, Mr and Mrs Bloggs (names may have been changed to protect the innocent) had been with us for a couple of years on a DMP. Circumstances dictated that, although they would have preferred an IVA at the outset it just was not possible. They paid £250 ish per month and things were ok. However, recently their circumstances changed in about 3 different directions at once. To cut a long story short, they had over £50k debt still, were now in a position that their DI was negligible but they did have £28k as a lump sum. After 4 hours of ringing around each individual creditor, what they would settle for was beyond their means (over £35k if I remember, greedy so and so's).
Their creditors, or rather creditor representatives at creditors meeting, have now settled for £17k as a one off lump sum under an IVA, leaving my clients with £4k of their lump sum to settle a CGT bill, and £7k to purchase a more modern 7 seater (lots of kids) as the old one was on its last legs.
There isn't so much of a moral to the story other than it is absolutely true and serves to illustrate the respective differences in leverage with creditors that apply generally to DMP's and IVA's, also that creditor representatives tend to be a lot more bottom line orientated when faced with cold hard cash than collection departments do.
It won't hurt you to speak to an IP on this, you have nothing to lose and everything to gain.
Regards.
Last edited by size5 on Tue Jan 24, 2012 11:50 pm, edited 1 time in total.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
IVA all the time as far as I am concerned - the benefits are that you get an agreement on a set day in time, rather than faffing around trying to get individual deals with all creditors.
We often have people approach us just like you, who are in neverending DMPs when there are perhaps better alternatives upon reflection. Creditors love full and final settlements, and everyone wins at the end of the day.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by size5
I will try and give you a recent example of a case I worked on in order to give you a clue.
As you may know, the firm I work for organises both DMP's and IVA's, amongst other things. My clients, Mr and Mrs Bloggs (names may have been changed to protect the innocent) had been with us for a couple of years on a DMP. Circumstances dictated that, although they would have preferred an IVA at the outset it just was not possible. They paid £250 ish per month and things were ok. However, recently their circumstances changed in about 3 different directions at once. To cut a long story short, they had over £50k debt still, were now in a position that their DI was negligible but they did have £28k as a lump sum. After 4 hours of ringing around each individual creditor, what they would settle for was beyond their means (over £35k if I remember, greedy so and so's).
Their creditors, or rather creditor representatives at creditors meeting, have now settled for £17k as a one off lump sum under an IVA, leaving my clients with £4k of their lump sum to settle a CGT bill, and £7k to purchase a more modern 7 seater (lots of kids) as the old one was on its last legs.
There isn't so much of a moral to the story other than it is absolutely true and serves to illustrate the respective differences in leverage with creditors that apply generally to DMP's and IVA's, also that creditor representatives tend to be a lot more bottom line orientated when faced with cold hard cash than collection departments do.
It won't hurt you to speak to an IP on this, you have nothing to lose and everything to gain.
Regards.
Hi Size5 cheers for your comments.
Based on £45k do you think £13500 is likely to be agreed? in your experience.
Also regards trying to improve my credit report by taking out a vanquis card etc (for example) do you mean after the 6 years I can start doing that or when I get the completion letter?
you can start rebuilding your credit after 6 years from the date of your IVA F&F, the IVA or DMP will be on your file for 6 years anyway regardless of which one you do
What you need to do is check your CRA files as soon as you have completed to make sure there are no defaults registered after the date of IVA acceptance - if so then you should write to those creditors, enclose a copy of your completiton letter and tell them to remove the defaults.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Secure69, if £13,500 is your best offer then go for it would be my advice, although I would suggest that you find an IP who will propose it without any upfront cost, no win no fee for want of a better phrase. That amount would provide a very decent return for creditors almost instantly instead of over the traditional 5 year period, and it is clear that the money is from a 3rd party, so they will have no claim on it should they reject. I do wish I could give you a 100% guarantee that they will accept, but of course no one can do that at this point. I can, however, heartily concur with Mel as to their general attitude, and tell you that in nigh on 15 years of doing this work now I personally have never as yet had an IVA of this nature rejected at creditors meeting, so it would not be unrealistic to suggest that I think your chances of success are extremely high.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
Secure,
i can't recommend Size5 highly enough, he helped me loads in giving up his time for me and the recommendations he gave me mean't he ended up not earning a penny from me.Also Size5 was very friendly and understanding and non judgemental.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by lem
you can start rebuilding your credit after 6 years from the date of your IVA F&F, the IVA or DMP will be on your file for 6 years anyway regardless of which one you do
Hi lem, so if the f&f got accepted and therefore Iva was concluded upon starting one, I could start applying for stuff like vanquis then to try and repair my credit file?
Cheers size5 you certainly give me some confidence in it all... you can but pray! [:)]
