Want to Settle IVA Early

[mazalamar]

Hi Andy,

Thanks for the quick response. Just one more question (at least I hope it's only one more!):

- How should I word an actual email/letter to the IP telling them I wish to make a F+F offer? I want to be as specific as possible including:

- Asking them to confirm removal of my name from the Insolvency Register

- Making sure all Creditors update my credit file to say whatever it is it needs to say to ensure that in year 6 I don't have a problem getting credit.

Thanks

Mario

[flozza]

HI Andy,

Thank you for your reply.

I agrre as far as the house is concerned, but my IP's alternative was to offer 6 months before auctioning my house if it hadn't sold. I imagine they would receive less if that was the case.

Hopefully with him suggesting it, there will be some hope.

Thanks again.

[flozza]

HI Andy,

Do you know if the unclaimed creditors amount is claimed when offering a F&f?

Thanks

[Lisa2009]

Flozza when our F&F was going through, hubbys IP sent notice to creditors that hadnt yet submitted claims, outlining that that have a certain ammount of time to make that claim or be excluded from the dividend.

Check your original chairmans report. Hubbys had it stated in that, perhaps you will too.

[MelanieGiles]

With regard to the letter to your IP - simply lay out exactly what you would like to offer - eg

"I am writing to advise you that I wish to offer the sum of £xxx to my creditors in full and final settlement of all liabilities included within the voluntary arrangement. The money is to be provided by ??? who has confirmed that it will be made available by ???. I would be grateful if you would confirm the timescale under which you anticipate being in a position to submit my revised offer to creditors and, on the assumption that it will be accepted, the further timescale required to close my case"

With regard to the creditors updating the CRAs this is outside the hands of your IP, and if it is important to you you will need to arrange this directly with the creditors themselves.

[flozza]

Hi Mrs Skint,

Thank you and will do! I think I read your posts - did your F&f get accepted, and if so, how much did they accept?

Thank you!

[mazalamar]

Hi Melanie,

Thanks for the letter format. Is it worth insisting in the offer of a F+F that the offer is being made subject to the creditors updating the CRA's and also is it worth advising the IP that the offer could be increased for a quick resolution and completion?

Thanks

Mario

[MelanieGiles]

I personally would not get too insistent on demands to your creditors - remembering that they are being asked to agree an early settlement, but seek the advice of your IP on that point. IPs generally do not get involved in CRA matters, but I do appreciate that this is important to you.

[flozza]

HI Melanie and Andy,

With regards to my last posts, I wonder, what sort of letter will my mother to write by way of offering funds?

Her broker is writing to say that the funds will be availiable in the next 10 days and that she has interest in my property, as is her solicitor. She is offering the funds as a f&f settlemnt on my behalf, having alreay invested over £7000 on refurbishment costs previously when the house went on the market over 10 months ago(unfortunately the price has dropped a few times and the dividend avaliable for creditios, should it sell, would be less than her financial interest.)

Obviously she is entitled to over £23000 worth of the property and this will be stated in the solicitor's letter.

My IP needs the documents in order to call a meeting of creditors.

My mother is not too sure how to word the letter. Any advice appreciated.

Sorry if this sounds a little garbled.

Thank you.

[MelanieGiles]

I would word it in a similar way to the way you have worded your post - which would seem to explain the situation exactly as it stands.

[flozza]

HI Melanie,

Thank you!

[mazalamar]

Hello All,

I just wanted to update you on where I am up to with all of the above.

I have just sorted out funding to pay off the IVA through a friend. So I am just about to start the process of making a full & final offer to the creditors.

I will keep you posted of progress and will keep posting to this topic any information I can share with you about my experience through this final stage of the process!

Wish me luck!!!!

Mario

[Skippy]

Good luck, I hope your F & F is accepted x

[mazalamar]

Hello All,

Well here's an update. Debt Free Direct finally got back to me after nearly two weeks with my 100 pence figure.

They've told me the 100 pence figure is £94,454.94. And they've attached a breakdown.

They've outlined their fees/etc.

They've also asked for:

1. The reason I wish to settle
2. Supporting docs for the offer
3. Completed budget planner

2 and 3 are easy - but what should I say for 1 above? 'Because I want to' doesn't really sound like a reason.

Any tips for when I send back the offer?

Thanks

Mario

[MelanieGiles]

Just be honest - if it is because you want to get on with your life, and are paying 100p in the £ - why not say that it is because you want to see creditors paid earlier.