www.iva.co.uk

Hi,
I have a 5-year IVA, already paid for 2 years. However, my health has now deteriorated significantly due to a long-term condition. This is impacting both my physical and mental health and I am having ongoing treatment.

I would like to FFS the IVA and focus on my treatment. The IVA with 3 creditors is being handled by one of the finance company

One of my relatives has agreed to help me out and pay the FFS amount.

I am not sure how much is sufficient so that creditors will be happy to accept.

Background: Year 1 paid £150x12= 1800
Year 2 paid £180 x12 = 2160. (after the annual review payment was raised as I had a pay increment). After long-term sickness, my pay has now been halved.

The total amount paid so far is £3960

Am I right in thinking that the total IVA agreement for the whole duration was 150x60 = £9000?

So if I offer (£9000-£4000) = £5000, via my relative, will it be acceptable to the creditors? Do I calculate the balance on the basis of first-year payments of £150 or second-year payments of £180?

Any advice will be highly appreciated.
Thank you

F&F are usually based on remaining payments at the time --- so in this case - 3 years left -- 36 payments of £180 is what the creditors are expecting going forward. So the offer needs to be near 36 x 180 = £6480.

That said, if income has been reduced there is scope that the regular payment should also be reduced. If that happens the offer would then be based on 36 times the reduced payment.

Thank you very much for your advice Breezy. It's very useful information. Kind regards

Hi,

Unfortunately, I have been informed of illness with poor prognosis. I would like to FFS as soon as possible via a third party. One of my know person has offered to help.

How do I approach this so that I can agree on an early settlement? How do I propose the offer to the company dealing with my case? Do I ask my friend to approach and offer? any useful template that I can use. thank you

Sorry to hear of your health problems. You need to let your IP know of your situation and the reason why you wish to make a full and final offer. Don't call it a settlement as this means you need to pay off all of your original debt, not just what was agreed with the IVA, plus fees and possible statutory interest.

You must also say that the money is only available for the offer and will not be available if it is not accepted. Your donor will also have to provide proof of where the money is coming from. This is to check for money laundering.

Let us know how you get on.