F&F offer advice please

[Evilmoo]

Hi

We are 7 months into our IVA. The amount we have to pay is £8700 over 72 months (6 years as its a low monthly payment).

In the summer we are going to lose about £100 a week in tax credit and child benefit cuts. My son is at college at present and was going to be taking another course next year but hasn't got the grade he needed to get onto it.

My husband is working and I have been looking for work but have developed terrible neck, shoulder and arm pain which my doctor suspects is a ruptured cervical disc (I already have a ruptured lumber disc). I'm waiting for an MRI to see whats going on.

My chances of getting a job in the rural area where we live were slim anyway but now it's almost impossible as I cannot use my right arm very well at present due to the pain and its very weak. My sons chances are also slim due to the area. We really need to consider moving but have no chance at the moment.

My brother has offered to lend us £2500 to offer a full and final as it looks like the IVA could fail and we would have to consider bankruptcy.

We have paid in £1300 so far (7 months at £122 plus interest of £450 from a PPI rebate which i claimed back that went in) so the total offering would be £3800 which is less than half of the original agreed amount.

Is there any point in us offering it?

It's that or nothing from bankruptcy but I don't know if the creditors would see it that way. Our majority creditor is Barclays so it would only be down to them if it works the same way as the IVA proposal. (80% of the original debt was with them due to a failed business).

Also we have sent off the paperwork for our IVA company to see if there's any PPI on our other debts - would this delay the completion if f&f was accepted?

Your thoughts on this would be much appreciated.

Many thanks

Amanda

[Shining]

Hi Amanda, I would talk to your IP and advise that the offer is there only for the use of a full and final settlement to your IVA. Would bankruptcy be an option for you?

[luluj]

Difficult to guage whether the offer would be accepted. Normally advice would be to offer as close to the original agreed return as possible.
Was your monthly payment based on your husbands earnings and the child tax credits etc ? If so a review of your income and expenditure should be done first to see if after the changes there is any disposable income ....this will then determine if your IVA continues to be viable or whether a full and final offer is the best option going forward.
If a full and final were accepted ppi claims would be considered and closure may be held up but your monthly payments would stop. Your credit files would still show the IVA for six years from the start date, although would be marked as completed once certificate received.

[Evilmoo]

Thank you

Yes the payment are based on hubby's income and the tax credits. We will be struggling to pay normal bills after the cuts, let alone paying the IVA.

We really don't want to go bankrupt. Surely the creditors could see our offer would be better than getting nothing in bankruptcy? We rent our house and don't have any assets of value.

I would make sure I let our IP know the money was only available as a settlement

Any ideas how long it take from making an f&f to creditor meeting to them making a decision?

Thanks again

[Evilmoo]

Another question - the amount we are paying back includes the IP fees. Would these all still be payable or would the final amount be reduced as they don't have to spend the next 5 years looking after the IVA?

Total payable £8,784
Admin Costs. £2,167

Leaving £6,616 to creditors

Thanks

[Foggy]

it depends upon how the fees are calculated, Evilmoo. Back along they were on a time spent basis, so would reduce if the IVA concluded earlier. More often, these days, the creditors amend the fee structure to a simple percentage of the realisations, so, say, 15% is the same whether the money came in overnight or over 5 years.

[Evilmoo]

So with my fees being 25% that means a total of £3800 would only leave the creditors £2850 so a shortfall of £3766.

25% seems a lot. I never took any notice before

[sandee]

hello evilmo

hope this helps-

my partner is in a debt management plan and one of his creditors recently offered to accept 50% as a full and final of that debt-which we were quite amazed at!

if you went bankrupt they would only get something like 22 or 27% (cant remember which) so i would think they would be quite happy with what your offering (but thats just my opinion)

i was told by a solicitor to try and avoid bankrupcy if possible because it affects so many other things in life

from my own experience barclays have been very good,we have several accounts with them and they have accepted as little as £2.78 per month on one of those accounts

hope some of this helps you as you you sound very worried?

[Foggy]

If your original agreement was 72 months at £122, the creditors would be expecting £8784.

From that there is nominee fee of around £1500. Then the supervisors fee, say 15%, £1100 (nearly), so that would be about the figure you have quoted.

So, the fees are 15 not 25% -- and, anyway, it's what the creditors signed up for.

[MelanieGiles]

I would personally wait until the summer when you can actually demonstrate the reduction in your disposable income. At that stage, of you can demonstrate that the IVA payments are unaffordable, the offer appears more attractive to creditors.

[Evilmoo]

Thanks

The problem is if we wait until the summer and then the f&f meeting etc takes weeks we could end up already being in a situation of not being able to pay

[Evilmoo]

Thanks Sandee


We really don't want to go bankrupt - the creditors wouldn't get any percentage from us as we have nothing!

We have just lost £44 a week in working tax credit and will lose a further £77 a week in July so it is a worry. I'm not sure how we will manage to pay our normal bills, let alone the IVA

Maybe I should just come out of it and go back to paying the creditors £10 a month forever

The ridiculous thing is if my son can't get a job he cannot claim job seekers until he's 18 (in july 2014) and we get nothing for him. How the hell does that work?!

[jeffw]

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

If your original agreement was 72 months at £122, the creditors would be expecting £8784.

From that there is nominee fee of around £1500. Then the supervisors fee, say 15%, £1100 (nearly), so that would be about the figure you have quoted.

So, the fees are 15 not 25% -- and, anyway, it's what the creditors signed up for.

Foggy, GT claim 25% fees.
I am still awaiting proof from them stating where and when I supposedly signed an agreement for 25% fees when I was unfortunately transferred to GT from BE.
Nine months passed and still no proof.
Therefore it is possible Evilmoo is with GT and 25% fees.

[Foggy]

Possibly, Jeffw, but the figure she was quoted ties up with 15%, unless they have accounted for nominees fees elsewhere. It seems one can never tell with GT.

[Evilmoo]

I'm with DFD

The reason I quoted 25% was the total fees were £2,167 which is 25 % of £8,784 our total amount payable.

Thanks