informal F&F offer

[indy]

Hi,

I am in the process of pulling together 45K. 20K from family and 25K from a secured loan to make a full and final IVA offer. I owe 55K so its a good offer and I dont want to enter a 5 year scheme. I was wondering, rather than ruining my credit history, is it possible to pay an Insolvency Practicioner to write to creditors with offers outside of an IVA i.e. an informal F&F offer.

Thanks

[MelanieGiles]

Anything is possible - I did one of these myself recently for forum member Mike S - but they only really work if you have a couple of creditors. I would say that any more than four creditors in total, and you would be better off looking at a formal route, as trying to get all creditors to agree to the same deal at the same time can be very difficult.

Best to seek professional advice on your various options and then weight up the pros and cons of each one. One clear advantage of an IVA is that you will know the outcome on a certain day in time, and this can be arranged pretty quickly for you.

[indy]

Hi,

I rang them today to see if any were receptive, I have 6 lenders and 7 debts. MBNA & Egg were receptive, Halifax, Sainsburys and Natwest Visa werent. I know Natwest current account will be receptive as they recently accepted 4K out of 6K.

The only problem is Egg want me to do an Income Expenditure and I dont want to undermine anything I put forward with my IP if I go through with the F&F IVA. May just send them an offer without the details. I told them the offer would be 73% (I have 40K and 55K of debt).

If I get an offer accepted on Natwest, MBNA and Egg, that leaves me 18K to deal with 24.5K debt (i.e. shortfall of 6.5K). I could just pay off the problem ones or pay a large chunk of each of the remaining creditors and get hammer them down with payments over the next 6 months-year.

Only thing is if I write to my creditors with an Income Expenditure form and they refuse anyway, I may undermine my F&F offer through my IP.

Thanks i

[MelanieGiles]

You seem in control of this situation, and are making some good inroads with some good ideas. Just make sure that you give all creditors the full facts of your circumstances, and try an deal with them on a equal playing field.

[indy]

Hi,

Thanks. We have made a definite decision to avoid an IVA, and also to avoid borrowing against the house unless we have to.

I am sure we have put too much detail in the offer. I have stated that I am not a home owner because my wife bought my beneficial interest so I caould pay my creditors 2 years ago (true and they will see this in their accounts). Just trying to say...hey, its a good offer - I aint got no assets (they can check the land registry).

Not sure if this is a good idea or not.

Regards

i

[indy]

..and is it normal for them to ask for an Income / Expediture?

[MelanieGiles]

Yes - and perfectly reasonable as they want to see if you could afford to make ongoing payments as well.

[indy]

Are they looking to see if is best to ignore the offer and take payments, or take the offer and then still take payments (which is how I read the message!!)

Been on a DMP for 2 years, so hoping they are open to offers if they realise I am a non-home owner (am I right to mention this?).

Thanks

i

[MelanieGiles]

Yes - they are looking for the best deal you can possibly give them to be frank.