There is no need for this clause. This person is not at risk from the IVA failing, they merely want to offer an alternative solution. To suggest that if the variation terms are not accepted that they be bankrupted is a complete nonsense - and yet the offending clause should definately be removed.
Thank you for your query.
I have today spoken with the IP and specialist variation team at here.
If you are unhappy with any of the variation clauses that have been drawn up you can ask that they are removed.
The clause stated is a standard clause inserted to cover the eventuality that should the full & final be rejected by your creditors and you were not in a position to resume regular monthly contributions, it may result in failure of the arrangement, it won’t necessarily be applicable in this instance.
Please do not hesitate to contact me should you require any further information or assistance.
Good to see Samuel on here clarifying the point about the clause. Standard clauses can sometimes confuse clients if they actually bear no relevance to the proposal in question.
Fuzzy_dunlor, some people have to offer a F&F because of a negative impact on their circumstances - reduced income, mortgage increase etc where it means their DI has greatly reduced or disappeared, In that case if the F&F was not accepted and no negotiation could be agreed on, then the alternative might be to go bankrupt. AS the others have said, yours is different - you just have a new opportunity to settle early. Fingers crossed for a positive outcome for you, and what a lovely friend you have!
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Spoke to payplan this afternoon and they have assured me that BR will not be an issue in the event of my f&f being rejected due to the fact I have enough surplus to cover my monthly payments .
The clause apparently is intended for people who have very little or nothing to offer in the event of rejection .
Tbh im still a bit peeved with this as anyone who has or is in debt will vouch that things like this send worry and stress levels through the roof.
Possibly in future payplan should look at this one size fits all clause as it must cause needless anguish when a simple bit of admin would make things clearer.
Thanks to everyone who has replied on this it made my monday more bearable
Therefore the clause is not relevant to you and should be removed. It is your variation proposal, as Foggy has correctly highlighted, so instruct them to remove the clause from the offer forthwith, and before the paperwork is issued to creditors.
Thanks for letting us know Fuzzy and I`m pleased Samuel clarified matters.
Congratulations Pedro[:)]Out of interest how does the figure of £9k compare to the sum of payments remaining in the arrangement?
Had my variation meeting this morning and my f/f was accepted hasn't sunk in that its almost over yet.
I would just like to thank everyone on the forum from the experts to the everyday posters as I don't think I would have made it without your advice and the information I have taken in over hundreds of topics i have read.
I would also like to thank payplan and in particular Julie Kerr my last case officer (a credit to your company) for everything they have done to help me it hasn't been the smoothest of rides but we got there in the end.
For the record my creditors accepted 27p in the pound f/f as aposed to 32p full term .
Had debt problems for almost a decade now so being debt free will take time to sink in .
Once again thanks everyone your lifesavers.
I have told your Case Officer of your kind words and she expresses her gratitude and well wishes in return.
On behalf of Payplan I also would like to express all the best wishes for your (debt free!) future.
Many Thanks
Samuel
Payplan Representative
Payplan offer a range of solutions including IVAs and free DMPs. To find out more and to contact us please visit www.payplan.com
