Hello everyone, firstly thanks for providing such an excellent and helpful forum for which is a complicated and sensitive subject matter. I've been reading various posts on making a full and final settlement offer. My IVA ends August 2017 and I currently pay £140 per month. I'm assuming an offer equating to the remainder of the IVA x £140 would be wise? (approx. £4500). What I'm unsure about is the reason to give. The truth of the matter is I currently live on my own, so am classed as single for the purposes of the IVA. However, I am in a relationship (living apart ~ assume this is allowed and partners earnings is not taken into account as not living together?). To move the relationship forward, I've been asked by my partner to move in with them. This is something I'd like to do but not with the IVA hanging over my head. Likewise my partner doesn't really want me to move in with such debts, which I fully appreciate. Therefore, my partner has offered to provide the funds to make the settlement payment. However, I'm not sure this would be looked at as a favourable reason by my creditors. Would it be an acceptable reason that a partner wants to have all debts cleared before moving forward in a relationship? Also, am I correct in thinking proof of the funds needs to be provided when making the application? If so, what is needed, just a copy of a bank statement? Most grateful for any advice you can give. Many thanks.
Sorry, just to add to the above, I might be being totally paranoid, but am worried if the creditors know I want to move in with my partner, they may refuse the offer on the basis they could get a higher monthly amount if I did move in with partner but stayed in the IVA. In reality, if the offer was rejected, I would stay put until the IVA ended. Thanks
Hi. Just wanting "the monkey off your back" is a good enough reason. There are advantages for the creditors too: they get the monies they are expecting in a lump sum, which will cost them a lot less in administration than dribs and drabs over the months ahead.
Compelling reasons only come into play when the offer is lower than the expected dividend.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks Foggy. So being in a relationship isn't an issue for the IVA as I live on my own?
Are there any templates to use for making a settlement offer?
Thanks again
No templates I am afraid. I made my full and final verbally and the IP drafted a suitable variation.
You do need to confirm that the funds are coming from a third party and are for the purposes of a F&F only. Should the offer be rejected the third party will be keeping the money and it will not be available for the creditors.
Regarding being in a relationship, it isn't really your IP's business apart from working out your disposable income. There are a couple of firms that will take a partners income into the payments, wrongly in my view, but most don't.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks again Foggy. Do you think £4500 is a viable offer? It is based on my current monthly payments x the remainder of months left in my IVA. I'm assuming it is not in my interests to offer lower than this.
Full and finals are normally based around what the creditors would have got had the IVA run to term (subject to availability of the funds of course). If there are extenuating circumstances such as ill health or pending long term unemployment, lower offers would be entertained.
Yes, I would think the £4500 is viable.
At the end of the day it boils down to how your particular creditors vote on the day. I have seen very low offers accepted as well as generous ones refused.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I agree with other posters that the reasons offered matter less than the amount offered.
All of us just want to see the IVA come to an end and move on with our lives.
Good Luck !
If the offer is rejected by the creditors, do they ever give a counter offer and/or is it possible to put in a revised offer, or is it a once and only opportunity?
Any ideas on the timescale from when you request F&F and outcome?
I'm with Payplan, not much has been mentioned about them in the forums, I'm assuming this is a good thing and they are one of the better companies to deal with?
In my experience if you are offering the full value of payments the creditors are not interested in the reason you are offering it, more they are interested where you are getting the money from and why they cant have this one off payment AND your monthly payment. They may want evidence of the source.
They won't come back with a counter offer and you can revise your offer ( but bear in mind that the first offer is supposed to be the best you can make!). Payplan do not like making revised offers.
Timescale would be a month to draw up the offer, maybe two, then the creditors have to be given 28 days notice.
Payplan have thousands of happy clients and are good when the IVA is straightforward and you hit no bumps. However, should you ever need anything sorted it is sometimes an uphill struggle and you will NEVER speak to your IP (as should be your right).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I made a F + F on the basis that it was no longer affordable (my lodger moved out)
Here is a copy of my F + F offer letter..
To whom it may concern,
This letter is confirmation that I would like to make a lump sum offer of £*** in
respect of the above IVA in the names of ***** and ***** as full and final payment.
Please note this offer is only available to “complete” the IVA.
I will make payment within 30 days of the variation meeting.
Yours faithfully
*****
I hope this helps and my name isn't really ***** !
Thanks ever so much everyone for your comments. Payplan have just advised me that the IP has agreed I can make the settlement offer and that the variation team will draw up the variation proposal. What they have advised which I was unaware of, is that in the event the offer is rejected, it could lead to bankruptcy although unlikely as I would be able to continue my payments. Does anyone know what the process is if the offer is rejected. I assumed everything would just continue as it was prior to making the offer. Thanks
