I wanted to know what are the main reasons creditors often use to reject full and final offers?
I have made an offer for £3000, as I pay a monthly payment of £230. I have 15 more payments to go. My offer is due the fact I am struggling at the moment to make payments and to prevent arrears and failure of IVA.
I am afraid they seldom give reasons, but generally it will be because they think they can recover more if the arrangement goes to term. They will also weigh up the chances of the IVA failing before this. Some weight is placed upon the IP's recommendation as well.
In your case, the offer is close to what they would be getting ( assuming there is no equity to be playing with)so I can't see them rejecting it.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I did attempt to remortgage but was declined. So the next option was a 12 month continous of IVA payments. So this offer is technically in place of this.
I'm reading others' posts and sometimes I feel like the outcome will be good, but other times I feel sick to my stomach thinking of rejection and the implications this could have
My IP has just given me a date for my meeting. I will keep you all updated, 28 days is going to feel like forever and I will officially become an insomniac
In my experience, creditors always give reasons for their rejection - well they do when I ask them! - and if your IVA is governed by the IVA Protocol then they are obliged to.
It is a good offer Preggaiv, and one which is very worthy of acceptance given your circumstances.
Thank you Melanie, for some reason I feel more at ease when you answer one of my questions. I really appreciate your input and you always give an answer which is correct.
After reading my variation report, I have found that the contents is a summary of more factual information and nothing like the letter I sent in which was full of feeling and sentiment.
I was assuming maybe some of my letter maybe included in the report, but it only included the facts of my not being able to continue due the reasons I wrote.
We generally use passages of script our clients provide to support their variation reports, for our own clients - especially if we feel that a client's direct appeal to their creditors would be helpful. Have you asked your IP why they did not include the material you had provided.
Last edited by MelanieGiles on Wed Feb 05, 2014 6:33 pm, edited 1 time in total.
I feel disheartened because my variation report has been sent to creditors and I have spoken to my supervisor in regards to the report not including any positive factors that I had included in my letter, like fulfilling all my obligations and also paying in more whenever I could with increased income.
Apart from stating the fact that there is no more disposable income it doesn't mention anything else about my situation.
It doesn't mention how sorry I am for putting myself in this situation, and the fact that I want the creditors to accept this full and final and pardon me.
It just seems like a 'cold' report. Unlike my heartfelt letter explaining my reasons.
