F&F offered

[Cole24]

Hi, looking for some advice.

I'm at the end of my 4th year of my IVA with DFD, I've never missed any of my £501 a month payments and it's been a struggle. I split with my wife 18 months ago but because of the payments I cannot afford to move out, but this is now putting a stress on me, my ex and our 7 year old daughter to the point that I have to move out. I spoke with my parents who have offered me £6000 to offer a full and final settlement which I have done and provided all the information and documents they need. There is equity in the house but my wife won't agree on remortgage as she will be staying in it while I move out and the repayments would be too high. I have stressed to them that if they don't except the offer then I'll have to look at reducing my monthly contribution to about 100 so I can move out.

Do you think this type of offer would be accepted? I'm now stressing again as I can't live here anymore especially for the little one as it's very hard on her, and if they don't accept or let me reduce payments I'm stuck living this hell.

[Foggy]

You are looking at an extension of 12 months instead of equity release --- so another 2 years at £500 - odd a month --- so the creditors are expecting to see at least £12k. I woudl have thought an offer in the region of £10k would be more in the right ball park -- but -- never say never -- I have seen very low offers accepted ( as well as high ones refused!).

On the proposed reduction front -- you cannot name the figure --- you can ask for a new I&E for them to calculate the new disposable income --- if this is too low they might fail the IVA -- on the other hand you coud ask creditors to accept payments to date and call it quits. But ...you have to tread carefully, as a fail now could put everything you have done at risk, as well as the house itself, should a creditor call for bankruptcy if the IVA is allowed to fail -- which would not be in the ex's interests, so she should be minded to co-operate to protect the house.

[Cole24]

That is foggy, do you think they would take circumstance I to account? If there's a possibility of the iva failing or payments being reduced would the offer be better than what pots totally could be less in the long run? DFD said the equity might not be an issue as I'm moving out?

[Foggy]

That is foggy, do you think they would take circumstance I to account? If there's a possibility of the iva failing or payments being reduced would the offer be better than what pots totally could be less in the long run? DFD said the equity might not be an issue as I'm moving out?

Yes, they will take circumstances into account -- the more dire those are the lower offer they will entertain.

I am not sure what you mean by the equity not being an issue due to you moving out ... residence has no real bearing. It is ownership that matters .... if you remain on the deeds you have access to equity, which the creditors will want to see addressed.

[Cole24]

Thanks again for responding Foggy, I sent all the documents on Tuesday so just waiting now. I'm keeping everything crossed.

[Foggy]

Thanks again for responding Foggy, I sent all the documents on Tuesday so just waiting now. I'm keeping everything crossed.

Best of luck.

[Almostfree]

Thanks again for responding Foggy, I sent all the documents on Tuesday so just waiting now. I'm keeping everything crossed.

Have you heard anything back yet?

[Cole24]

Yea, the £6,000 wasn't put forward as the IP didn't feel it sufficient. Spoke with my parents who have offered extra so I've offered £10,000. Today, 2 1/2 weeks later I received the report which I have accepted and now waiting for a date for the creditors meeting. Feel I'm so close to getting this nightmare sorted.

[Foggy]

Shouldn't be too much longer --- good luck !

[Cole24]

Thanks Foggy

[Cole24]

Amazing, got a letter today, creditors meeting is on 7th september.

I'm with dfd, all I've seen is bad posts about them. Yes their fees are high, but they are upfront about their fees. Every time I've called I get an answer and the creditors meeting is within 5 weeks of making my offer. I haven't had an issue with them, annual reviews have been easy and straight forward.

[Cole24]

Just had the call and my f&f has been accepted. Also was advised that as I have made a payment recently that is deducted from the offer. I could not be happier, feels like a huge weight is lifted and I can get on with my life

[Foggy]

Congratulations Cole. Nice result with the deduction of the last payment too