F&F funds

[esgt1967]

Hi, looking for advice on possible F&F (although not for some time yet)! If a third party is offering you funds for a F&F, does the IP usually insist on seeing evidence of the funds eg a bank/savings statement before they will put the F&F offer forward or would a letter from the third party with the usual offer wording be sufficient? A third party may be able to give us the funds for a F&F at some point in the next year or so but they may have to borrow the funds themselves to settle the F&F and we would pay them back rather than pay the IVA. Therefore, they wouldn't want to take on the loan until they were sure the F&F would be accepted so there would be no proof that the money was in their account, only their intention to provide the funds. Is this good enough or would the money have to be proved to be physically available? Hope that makes sense.

[kallis3]

Hi,

The IP will need to know where the funds are coming from (it is to do with money laundering) and the person putting the funds forward will need to state that these are available purely for that purporse.

I think, personally speaking, that as long as they can prove the funds are there you should be ok but hopefully one of the other experts can help out.

[Lisa Thomas]

The point is to ensure the source of the money in case it is somehow coming from you and you have been hiding assets somehow that are all due into the IVA regardless.

You will need to liaise with the IP on this but I think a variation could be worded suitably that the funds could be acquired within certain timescales if/when the variation is approved and the third party can then prove the application and funds etc are coming from them, not you.
Best of luck with it.