Please advice what offer would be likely to be accepted

[Hot and cold]

Hi, 3 years 9 months in a 5 year IVA, have been offered money by family to make a F&F payment and would like to get some advice on what we should offer. We are with Payplan and are paying £271 a month with 15 months remaining -amount due of £4065. When plan started if unable to release equity at the end of year 5 we will have to pay a further 12 months payments which would make the amount due £7317. No equity, please advise what offer would be likely to be accepted? Thanks for your help

[Michael Peoples]

If there is no equity and no extension to be applied I would think £3,000 would be a reasonable offer. However Payplan seem to be very slow in calling variations so make sure this does not happen to you.

[kallis3]

Also, Payplan have a habit of putting a bankruptcy clause in any full and final offer. Get them to remove it and they will.

[Hot and cold]

Thanks for the replies,how do I know about the bankruptcy clause?

[kallis3]

It will be in the proposal so read carefully and then get them to remove it.

[Hot and cold]

We do have a year extension as equity won't be able to be released, any suggestions on what we should offer? Thanks for your help

[Lisa Thomas]

Are you certain the equitable interest in your property is over £5k?

This is your starting point - to get a current valuation to prove the extra year won't apply.

If it does apply, an offer of c£5k would seem attractive but at the end of the day it's up to creditors to vote on what they will accept.

The more attractive the offer the more likely they are to vote in favour...

[Hot and cold]

Hi, thanks for your reply, we are quite new to all this would it be possible to speak with someone so that we know better what we need to do? As we have a lot of questions?

[Foggy]

The first thing you need to do is to establish whether the equity extension will be triggered. If not, then the offer of £3,000 is attractive. If it does get triggered, you would be looking at nearer twice that.

[Lisa Thomas]

I'd be happy to talk to you (01752 786800) but it's best for forum members if you post your queries on line so they can learn/share the advice.

[Hot and cold]

Thank you for all your replies,very helpful. Our mortgage is for £150 k and houses in our development selling for £95k to £130k but pay plan said at the start if we could not release equity we would have to make a further 12 months payments when we entered into the agreement so would we offer £5-6k? Thanks

[Lisa Thomas]

You need to get a proper valuation of your property from an estate agent who has actually been around to look at it.

[Foggy]

Have a read of your paperwork -- the extension usually only applies if there is more than £5k of equity which you are unable to release --- no equity = no extension.

[Hot and cold]

Thank you for all your replies, called payplan and only need to pay an extra 12 months if we have more than 5k equity. We are going to get the house valued but are nearly certain it is in negative equity, so do you think a £3000 offer would be enough for a F&F to be accepted? Thanks so much for your help for the first time in years, we feel there might be light at the end of the tunnel!!!

[Foggy]

These things can never be second guessed -- but it is a credible offer -- don't forget they will all be saving on admin costs going forward, as well as a bird in the hand being worth two in the bush.