www.iva.co.uk

Request for assistance with F&F figure.

Hello people, this is my first post here so please bear with me if I have mistakenly placed it somewhere it shouldnt be..

I started my IVA September 2012 (debt originally stood at £19,000 ish) and have been paying £100 per month.

I am now looking to try and make a Full and Final offer to the creditors but am unsure how much to offer.

I am looking to sell my flat which has some equity in it (however I am going to court at the end of next month to thrash out the equity split with the ex so at this point in time am unsure how much I will have).

Appreciate noone here will be able to tell me whether any offer I make will be excepted but if anyone is able to give me a rough guide as to how much I should offer I would really appreciate it.

Hi and welcome.

Firstly, congratulations on the impending new arrival!!

Secondly, you should offer the total of the payments remaining (or possibly a bit less). Is the money for the full and final coming from any equity in the flat? Hopefully Michael Peoples or Lisa Thomas will be along to advise further.

£100 multiplied by the nuber of payments you have left. If you think you will have an equitable interest worth over £5k you will need to add on 12 more payments for the assumed years extension that will apply for the equity in your home.

On assumption this will take you to roughly September 2014 and will take a couple of months to put the variation meeting together I think you have about 2 years to go, which will be c£2,400.

You could offer a bit less.

The more attractive the offer the more likely creditors are to accept it.

Hi. You have around a year left to run, plus, possibly, 12 months for equity if your share looks like being over £5k. So an offer would be based around £1200 (no equity) or £2400 (with equity).

I would offer £1000 or £2000 according to the equity situation.

It would be better to get a full and final done and the IVA completed before planning to sell, otherwise any of your share of the equity, when thrashed out, will go to your creditors.

It sounds like you have about a year left plus an extension for equity as I doubt you could release any funds. I would therefore think about £2,500 would get creditors what they would have received from the IVA and that should be acceptable. However, if you sell the flat creditors could ask for more so it may be better to borrow the funds if possible from family/friends and close the IVA down now. You can then thrash out whatever deal with your ex later without the complications of the IVA.

Hello all,

Thank you so much for your replies and the advice along with the best wishes.

To elaborate the situation in the hope for a bit of clarity..

I am in court on the 26th August 2016 with the ex to resolve equity split.

Myself and fiancée wish to move as soon as possible after this using any equity I get from the sale of the flat as deposit for another place.

My equity share could be anything upto £45,000....

With this in mind, and given how long it would take to sort out an F&F and present it to the creditors would they be looking for 100% or would they look at the fact we want to move on debt free and make a fresh start and allow a less than 100% offer to be made.

If we were to remain living where we were and make an F&F offer how long realistically would we have to wait to then sell the property without raising concerns from the company I have the IVA with? (Without taking the mick)

Any further advice, as always, gratefully received.

Lawrence

Hi Lawrence - per above they will be looking for an amount as close to what they would receive if you continue the IVA in the normal way.

If the property is sold prior to your IVA ending you MUST get a variation agreed first, otherwise ALL of your net share of equitable interest will be due into the IVA estate (unless and until the total debt, costs and interest have been paid in full).

Hi

Thank you for the reply.... I am so sorry I appear to be thick... But ... When you say when the iva finishes do you mean if the f&f is accepted and paid or until the original term of the iva?

Also if the iva was discharged with an f&f in (for arguments sake) September would there be anything stopping me selling the flat in October or would I have to wait?

Kind regards

Lawrence

Once you have made a payment via a full and final then your IVA is completed and you will not have to make anymore payments.

Once you get the completion letter then you are free to do what you wish with your property.

You will need to inform the judge that you are insolvent and subject to an IVA before he/she makes a decision on the equity split. Your solicitor should advise better.

Oops! Hadn't read the whole thread properly! Agree that you need to speak to your solicitor about this.

Your advice was correct Kallis but it may be too late now to try and get the IVA closed down. This may need resolved by the courts.

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by larryg

Hi

Thank you for the reply.... I am so sorry I appear to be thick... But ... When you say when the iva finishes do you mean if the f&f is accepted and paid or until the original term of the iva?

Also if the iva was discharged with an f&f in (for arguments sake) September would there be anything stopping me selling the flat in October or would I have to wait?

Kind regards

Lawrence

If a F&F is accepted via a variation order then the Trustee should be able to confirm that the IVA estate has no interest in the property and arrange for their caution to be removed whilst you await your CC. Worst case scenario you will need to wait for your CC before doing anything with the property.

I suspect you will need to wait the outcome of the Court hearing first so you can establish how much the equity split is.