F@F Questions.

[michael983]

Hi.

I thank you in advance for any replies to my questions.

After my IVA payment in May, I will have 30 payments remaining, that will include the added equity year. This totals 15K, give or take a minimal amount.

My partner has offered to take out a personal loan and gift it to me to make a full and final offer. That way, my terrible constant stress will be relieved, we can move forward with our relationship and I can be rid of my I.P whom I don’t have a vety high opinion of. I’m going to use the template letter on this superb site and add that any intermediate payments are to be deducted from it in the time it may take to go through

My questions:

1) Will it matter that the person who is gifting the money to me has taken a lian to get it? She has an excellent credit rating and will get it at a prime rate over 3 years.

2) At what point will the IP wNt to see proof of the monies to be donated? Obviously, if it takes 6 months, she will only require a loan of 12K if proof is required towards the end of the process (I’ve allowed 6 months as I’m with Payplan) or 15K if it’s imediate.

3) I’m going to send it recorded delivery. Should I address it to my current case officer or their general adress?

4) How long would you expect to wait for any kind of response as, to be honest, my experience is that it can be like dealing with the iron curtain and it’s so depressing.

Thanks again for any help or opinions

[Foggy]

1) Will it matter that the person who is gifting the money to me has taken a lian to get it? She has an excellent credit rating and will get it at a prime rate over 3 years.

It shouldn't do -- but some creditors do not like F&F offers to be loan based.

2) At what point will the IP wNt to see proof of the monies to be donated? Obviously, if it takes 6 months, she will only require a loan of 12K if proof is required towards the end of the process (I’ve allowed 6 months as I’m with Payplan) or 15K if it’s imediate.

They will want to see proof of availability of funds prior to calling the variation meeting ... the timescale with your provider is a total guessing game!

3) I’m going to send it recorded delivery. Should I address it to my current case officer or their general adress?

Address it to your IP (Supervisor)

4) How long would you expect to wait for any kind of response as, to be honest, my experience is that it can be like dealing with the iron curtain and it’s so depressing.

Under the standard terms and conditions they are supposed to draft the variation within a few weeks of getting the offer and then give creditors a couple of weeks notice -- but this is all academic to Payplan, who live by their own rules !

BTW -- It is common practice to reduce an offer amount slightly to account for the savings in administration costs to the creditors (obviously, though, the larger offer has more appeal).

[Lisa Thomas]

Are you sure you have sufficient equity for the years extension to apply? Bottom this out first before putting forward any offer as you may be offering too much.

Your partner needs to be certain about this as it will be legally classed as a gift so they cannot formally pursue you for repayment. If things go wrong between you then s/he will not be in £15k of debt...

[Lisa Thomas]

* now

[michael983]

Are you sure you have sufficient equity for the years extension to apply? Bottom this out first before putting forward any offer as you may be offering too much.

Your partner needs to be certain about this as it will be legally classed as a gift so they cannot formally pursue you for repayment. If things go wrong between you then s/he will not be in £15k of debt...

Thanks for replying to both of you.

Hi Lisa.

Yes, I have around 55K equity so thought I'd put in a better/more attractive offer to help the proposal through, although now, I'm going to round it down a little after Foggy's advice. My partner and I have been together over 3 years and I'm not the type of person to ever betray somebody who has helped me. We will eventually marry, no doubt. My job is very secure and should I die, it will be more than covered so everything's in order.

Living like this is chipping away at my mental health and its seriously the right thing to do as I'm constantly worrying about what may happen towards the end of it and also it is so frustrating dealing with a supervisor who, to say the least, seems to just palm me off when I call and thinks that losing emails that require response by very worried people seems to be acceptable practice. I so wish I'd known about this forum before I embarked upon this journey, but that's life.

[Lisa Thomas]

Just bear in mind that if you die before the IVA ends your share of equity in the property and other assets will likely vest in trust for the IVA costs, interest and creditors so there may not be enough to cover repayment to her.

[michael983]

Just bear in mind that if you die before the IVA ends your share of equity in the property and other assets will likely vest in trust for the IVA costs, interest and creditors so there may not be enough to cover repayment to her.

Okay, thanks for that.

Anyway, should it all go through smoothly (or not) I'll be back on here to let everyone know.

[Lisa Thomas]

Best of luck

Here is my short video on F&F's for you or anyone else interested:

https://youtu.be/h4dozq9aGak