will this be acceptable as F&F payment?

[Delfi1980]

Hi, I have been in my IVA for 11 months and my parents have offered to pay my IVA off. My initial debt was for 78k and my creditors agreed to accept 25k. So far I have paid 5.5k into this agreement. If my parents pay the remaining 19.5k will this be acceptable as F&F payment? Any advice would be much appreciated. Many thanks

[Adam Davies]

Hi
I presume that you do not own a property and therefore do not have an equity release clause within your IVA.
You are paying £500 per month with total IP fees of 5k.So yes I can see no valid reason why your creditors would not accept 19.5k as settlement.I think that they will bite your hand off !!
You could offer slightly less as there should be some savings on your IP fees but it may just be better to offer the full amount.
Some IVAs have a clause for no variations in the first two years of an IVA so check this out with your IP.
Finally make sure the proposal states that the loan from your parents is only to be made if it is to be used to settle your IVA and your disposible income will be used to repay them.
Speak with your IP
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

I can see no reason why this would not be acceptable either, but wonder why your parents did not make this offer before you entered into the IVA - as it is a relatively short time since you made the agreement.

I would not offer slightly less if I were you - you still want to be making best offer - and you do want to ensure acceptance.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[iva_squirrel]

Hi Delfi1980,

It seems like a good offer. You should talk to your IP and make sure your IVA agreement allows you to have a variation at this early stage.

Regards,
Michelle P.