www.iva.co.uk

Hi,
First of all great site. I've read quite a few threads on this site when needing advice which has helped loads.
I've been in an IVA for just under 2 years (will be 2 years on march 3rd 08).
I am hoping to make an offer for a f+f settlement.
I have no 4th year clause as I do not own a property.

My debts were £28,500 and i've been paying £257 a month for the past 25 months (made 2 extra payments just before it started) and an extra £1791.22.
So total in the pot at the moment is £8216.22
My supervisers fees are £3172.50 and my nominee fees are £3172.50 both of them include VAT. Total Fees equal £6355.00.
So total available to creditors at the moment is £1861.22 with 37 further payments of £257 yet to pay.
When the IVA was first agreed the original amount that the creditors were due to receive was 28p in the £. At my first annual review that went up to 31p. The second annual review is due in March and working out the figures myself I think they are now due to receive around 40p in the £.
I am hoping to offer them £10,000 which would result in the creditors receiving £11861.22 in total.
In comparison if I let the IVA run its course. The total they are due to receive is £11370.22
The £10,000 will come from my mum who is willing to re-mortgage her house on the condition that I will pay her back the full amount that I borrow and that it will complete the iva in full.

It is highly unlikely that the IVA will run its full course as I have injured my wrist and am seeing a specialist at present. I have been advised that I will more then likely need to have an operation and will need to take considerable time off work. I am thinking about offering to work in a different department which would result in a wage drop of around £100 - £150 per week. But it would enable me to at least carry on working without taking the time off sick.

Do you think this would be a fair offer?

If so what is the procedure to do this? is it just a case of calling your IP and saying i want to offer a f+f settlement with them and them saying, right ill get back to you or will there be Q's etc.
Also as my second annual review is due in March would that still go ahead if I was to offer them a F&F this week. Will I still have to pay my monthly payments whilst I'm waiting to hear if the F&F has been accepted and how long should it take for my offer to be accepted if it is accepted? My IVA plan is with Freeman Jones.

So many questions, sorry!! I guess I'm just a silly girl really!!

Many thanks in advance for your replys [:)]

For a full and final to be accepted, your Supervisor will need to put a variation to your creditors and creditors have been asking for 28 days notice of a variation meeting. At the meeting creditors can vote on the proposed variation - very similar to your first meeting of creditors on whether creditors accepted your IVA proposal.

The offer of £10k seems reasonable. Your Supervisor will need you to put the offer in writing with evidence of the £10k. Ideally a letter from your mother and ideally some evidence that your mother has in principal been agreed for this remortgage/secured loan.

However, your mother is going to incur interest on lending you this money and you will need to pay your mother back at some point. Is it worth contining with the IVA until your income drops, if it drops? As the IVA payments are effectively interest free based on your figures. Your operation may not be for say 12 months time in which case you can review the position then and you will need to borrow less from your mother to make a full and final settlement.

An early settlement, if accepted by creditors, is a win-win situation for you and your creditors. They get paid earlier, and you demonstrate that you have finalised your IVA earlier. If the opportunity arises, and your mother is happy to lend you the money, I would approach your IP for a settlement figure, and then see how much it is going to cost you in future to service your mother's mortgage.

Hi guys
thanks for your replys. I think that I will offer them the 10k F&F settlement on Monday morning. Will let you know how it goes. [:)]

Can IPs put up the minimum P in the £ that creditors are due to get at yearly reviews??

I thought the minimum was set in stone at the start of your IVA and that was it!

Not true - improved circumstances which lead to higher payments are bound to result in higher dividends!

That has got me a little bit worried!!!

I had a Minimum Dividend Modification requiring a minimum percentage of XX% return to Creditors to enable my IVA to successfully complete. I was (am??) happy with this as I have made healthy additional payments thanks to Overtime, Bonus, and Pay Award, which I was (am???) happy will bridge the gap between proposal balances and final claimed balances to ensure that my minimum dividend - as per Modification - is reached.

I may have misunderstood (I hope so!!!) - but do I gather from Melanies post that the Supervisor can - as a result of increased income - increase the required MINIMUM dividend above and beyond the percentage required by the initial creditors Modification? Otherwise the IVA may fail?

If so - that puts me in a whole new - and rather worrying situation. I had always assumed that my Minimum Dividend Mod - once agreed - would run for the duration.

Oh well - what will be will be I guess.

My point is that the minimum dividend was set by the amount of payments you envisaged setting at the time the arrangement was accepted. If you pay in more money the dividend payable will naturally rise. This does not mean that the minimum dividend set by the IVA is increased - as this could be useful to rely upon if you struggle in later years.

Hey guys ,
Just had my f+f settlement meeting on fri and they accepted £8500 which is great news,the moneys in the post and thats me all done and dusted. Really glad its all over for me and i can start getting on with my life.
Thanks to those who gave advice when needed:-)

That's really good news - good luck for the future x

Well Done and enjoy being debt free for the rest of your life !!

Hi guys, had my iva F+F settlement meeting last friday and all went good, they accepted £8500 which was the best new for me:-.
Many Thanks for the advice and keep up the good work on the site, i know its help me out when crossed with problems to do with IVA's.

Congratulations - enjoy your debt free future