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Hi all. I am preparing to make a full and final offer I have 7500 approximately to pay and I am paying 190 a month I have a six year IVa And have paid 31 payments out of 72

I haven’t considered the amount as yet but I’m thinking £6000 does that sound reasonable

A family member will put up the cash as a gift my question is if it is rejected the £6000 can still be used so can that money be paid in as a lump sum to reduce the amount owing to 2500 remaining and I just pay off the rest over The next year. If I want to pay off the full amount which it would be if the offer was rejected I suppose can I just pay any amount at any time to reduce the amount considering that the next annual review for my salary and incomings December this year. If I’ve paid the total amount within the next six months does the IVa Just end because it has the money set out to achieve thank you

No -- if you pay in the £6k as an overpayment, rather than a full and final it will just be absorbed by the IVA, which will continue, as now, until you have made the full number of agreed payments. You do not just "owe" the agreed amount, you still owe the full original debt, plus fees and possible statutory interest and the object of the IVA is to pay back as much of this as possible.

£6k sounds like a reasonable offer. This would have to be paid, if accepted by creditors, direct from the donors account and you should make it clear that it is only available for the purposes of a F&F only. If the offer is rejected the money will be retained by the donors and will not be available towards the IVA.

Thank you for the reply I was hoping you would reply with excellent advice to others

I have not received much information from my IVa administrator and as you alluded to in some of your other replies they are a bit distant because they are acting for both

However do I submit a letter to the creditors to be included with the offer and this is sent off to them to be considered - I want to put in various reasons to support my case for the full and final offer

Also do you put a line in the letter to say that the £6000 is available immediately on their acceptance but what happens if they take two months to decide and I've paid another £380 Does that come off the 6000 or have they just accepted another £380 on top

So in reply to your reply below the importance of putting that that money is only available for the sole purpose of a full and final offer is they have one chance to agree to it otherwise there are chances that in the next 29 months or however long no money could be not available

Taking your points in order:

Submitting a letter: Usually you give your reasoning, in writing (although I did mine over the phone), to your IP and he or she puts the case forward to creditors on your behalf. I see no reason why you could not submit a letter and ask that it be attached to the variation proposal.

Availability / timing of the lump sum: The IP will ask for evidence of the existence of the money before submitting the variation request. As well as satisfying him or her self that the money is there, this has to be done for money laundering regulations purposes. The IP will also need verification of the I.D of the donor. In your offer you can specify one of several options -- a) The payments made in the meantime will add to the offer ( not recommended as they can drag their feet to get more). b) Agree a payment break so that no further payments are made until the outcome of the variation is known. Or c) specify that payments made after a given date will be deducted from the lump sum. Personally I prefer option b.

Your final paragraph: The reasoning behind informing them that the money will no longer be available if the offer is refused is to make it clear to them that you do not have free access to £6,000, other than for this offer. If they thought that you did have free access to this money it could be declared as an asset and payable into the IVA anyway, so they get £6k more than anticipated. It is just a 'belt and braces' thing to ensure they understand (or to emphasise) that the money is not yours.