www.iva.co.uk

Hi, I am just wondering if anyone could help me... I am 18 months into my IVA and have been offered some money to make a full and final settlement offer.

I have been told by my advisors that if I make an offer then the creditors could take the money but expect me to carry on, is this true?? my understanding is that if the settlement money is from a third party and on a full and final settlement basis creditors either accept or reject the offer, and can't take it plus more...

the amount I am offering is fairly low - £5000. I had a variation shortly after starting my IVA due to a breakdown in relationship. I paid £344 for about 4 months and have been paying £184 per month since. I have a clause on year 4 to remortgage but as I would be the sole mortgage applicant I doubt I would get another mortgage. Based on todays market there is no equity.

I am not sure if the offer is just so low it is not worth creditors considering or not? and if I put the offer forward and it was rejected whether this damages my agreement.

Its possible I could raise £8000 max. I have been told by debt management co I need to be offering about £10k but this to me does not make sense as this is more than I would repay if I did the full term.

I am at risk of redundancy towards the end of the year and already rent my house out at a financial loss.

Any advice would be gratefully received, I really don't have any confidence in my debt managment co, and I am not sure if asking specific questions to my IP costs extra fees. Can anyone help, Thank you!

Hi - my understanding is that if you are offering a F&F offer because of a change in circs (health, redundancy etc) then it can be accepted. As you rightly say you need to stress that it is to end the payments to the IVA and also get the 3rd party to stress the same in their letter. If you make a payment without any circs to consider then I think they can ask you to carry on.
To be honest with you, unless there are circumstances then they may not accept a low offer.
Best hang on for professional opinion on here. It's a shame you don't have confidence in your DM company. It might be better to wait to see if you are made redundant or not. I have had the threat of redundancy over my head for 2 years now but it has never come to it.

Hi
8k sounds a good offer to me and would be made only if the full and final was accepted by your creditors, so utter dribble from your advisor in stating that creditors would grab this and your continued monthly payment.
Put your offer in writing outlining the redundancy threat etc

Good luck
Regards

Hi,

I agree with kazza. You must stress that this money is only available for a full and final and if that isn't accepted then the offer will be withdrawn. They cannot take it and then make you carry on if this is the case.

Thank you for your replies. I agree, it is horrible having redundacy over you I know. I did think it seemed strange that they could keep the money and make me seem more - no point in making an offer! Thanks Andy I have written to them explaining and that was the advice I was given from them, but I will write again making sure I am very clear that it is full and final etc

If I were you I would get the letter from the 3rd party and write in formally asking them to ask the creditors to consider your full and final offer. You can say that you are in negative equity, your property is rented out at a loss and you have the threat of redundancy that is incresing your stress. You don't know until you've tried!