What Are My Chances?

[Aceshigh1993]

Hello,

I've recently explored the prospect of getting a Sprout loan to free me from my IVA 2 years earlier than scheduled. (I'm with Creditfix)

Sprout loans offer 80% of the money the IVA company would receive if I was to continue with my normal payments.

I currently pay £129 a month, so if I was to continue the creditors would receive a share of £2967.

Sprout is offering a final settlement of £2550. Before the variation meeting, I would have paid another £129 in October as part of my normal agreement, and I'm guessing that I might pay another £129 in November too before it's all wrapped up (If successful)

In short, my creditors will receive £417 less than they would if they continued with the payments as is, or £159 less if I pay 2 more payments and Sprout does not adjust their offer to give them 80% of the outstanding balance with those 2 payments taken into account.

What do you think my chances are?

I can understand that it's more beneficial for them to continue with my agreement as it stands now, but a part of me sees a lot of benefit for them in ending it early too. A lot can happen in 2 years, and I'm hoping they'll consider the £417 as a negligible price for a settlement 2 years early

[Breezy]

I think the figures you put forward are favourable and, with any other IVA provider, I would say had an excellent chance. CF might well push for the full amount, as they often do, but it is your offer to make, not theirs.

Best of luck with it.

[Aceshigh1993]

I think the figures you put forward are favourable and, with any other IVA provider, I would say had an excellent chance. CF might well push for the full amount, as they often do, but it is your offer to make, not theirs.

Best of luck with it.

The variation meeting has already been arranged for 26/10/22. Would this alone indicate that Creditfix thinks it's a fair offer?

I was under the impression that IVA companies are no more than mediators in a sense between the creditors and the debtor. I didn't think Creditfix had a say in whether or not the offer should or shouldn't be accepted.

[Breezy]

The variation meeting has already been arranged for 26/10/22. Would this alone indicate that Creditfix thinks it's a fair offer?
I was under the impression that IVA companies are no more than mediators in a sense between the creditors and the debtor. I didn't think Creditfix had a say in whether or not the offer should or shouldn't be accepted.

Seems CF are happy to proceed, maybe due to the relatively low sums involved, or a recent change in policy. You are correct in that the creditors are the deciders in these matters, but, in the not too distant past we had numerous posts where CF refused to entertain less than the full outstanding payments.Our advice was that it was the posters offer, not CF's, to make and, after a polite exchange, the offers were put forward (and, on the whole, accepted).

The reasoning we can only guess at, but CFs fees are a percentage of whatever you pay --- bigger offers mean bigger fees .... cynical I may be, but this firm and some connected to them have been pulled up for being fee-centric before. Hopefully that is all behind them now.

[Aceshigh1993]

I think I've put forward a compelling case.

I've told them about my struggles with mental health and stated the benefit for both parties of ending it 2 years early from my perspective. I've also told my IP that there's a possibility that my family and I may be leaving the UK. It's a very slight possibility but hopefully, they'll factor that in with their decision.

Cheers for your insight. I'll update the forum with the results of the meeting after the meeting.

Fingers crossed. So ready to be done with this IVA now.