Advice on full and final

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Diane.20
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by Diane.20 » Thu Aug 23, 2018 2:41 pm
My IVa finishes next March my original debt was 13000 I have paid 9600.00 my dad had said he will give me a lump sum to pay IVA I don’t know what to offer full final settlement... any advice ?
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Foggy
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by Foggy » Thu Aug 23, 2018 2:52 pm
A full and final settlement is based on the number of months remaining multiplied by the current monthly amount. If you are a property owner add 12 months.

To be honest, with 7 months left, a F&F is not really worth the hassle and will gain you very little.
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Diane.20
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by Diane.20 » Thu Aug 23, 2018 4:04 pm
Thanks for your answer , just worried as they said they are reviewing for interest to be released on property and if I can't do this the IVA can be looked into extending to a maximum of twelve months, hence me speaking to dad as I can't face another 12 months .
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Diane.20
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by Diane.20 » Thu Aug 23, 2018 4:06 pm
Sorry I meant equity not interest.
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Foggy
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by Foggy » Thu Aug 23, 2018 4:48 pm
Ah right, so you are a homeowner, which means, for the purposes of a F&F, if there is going to be more than £5k equity (to trigger the clause) you have 19 more payments expected (to include the 12 in lieu of equity release.

So the F&F offer should be based on 19 x your monthly payment. As you will be saving them a years admin costs, you could round it down slightly, but, obviously, the better the offer, the more chance of them accepting it.

You mentioned that your original debt was £13k --- was that the full pre-IVA debt amount, or the expected IVA payments ? How much do you pay monthly ?
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Diane.20
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by Diane.20 » Thu Aug 23, 2018 5:18 pm
SOA balance was 13368.00 . My pays first year was 110.00'plus paid 900.00 extra with overtime then second year it was 285.00 remaining years after till march has been 170.00 a month . I was with Knightsbridge and they sold my iva to Creditfix who wrote to me saying the fees had increased needless to say I didn't sign agreement and also told them on phone,, this wasn't who I signed up with :(
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Foggy
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by Foggy » Thu Aug 23, 2018 5:32 pm
So, currently, your creditors are expecting to see another £3230 (inluding the extension, assuming it would kick in). So, maybe, offer them £3k. On such a small sum (to them) their is little room to haggle really.
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Diane.20
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by Diane.20 » Thu Aug 23, 2018 5:41 pm
So do you think 3k would be acceptable ? Would rather pay settlement then go through another year.
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Foggy
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by Foggy » Thu Aug 23, 2018 5:53 pm
Diane.20 wrote:
So do you think 3k would be acceptable ? Would rather pay settlement then go through another year.


I would say that it had a fair chance. At the moment CF are having long delays with variations, having stopped them completely for a while, so it might be wise to add in a condition that the lump sum amount will decrease by the amount of payments made after a given date.
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Diane.20
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by Diane.20 » Thu Aug 23, 2018 6:01 pm
Sorry I am a bit dumb , what does variation mean ? Also do I put offer in e mail or post ?
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Foggy
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by Foggy » Thu Aug 23, 2018 6:22 pm
Diane.20 wrote:
Sorry I am a bit dumb , what does variation mean ? Also do I put offer in e mail or post ?



By wanting to end early by paying a lump sum you are varying the original terms of the agreement, so a variation meeting needs to be held to ask the creditors if they agree to your proposed offer.
Email or post will do --- personally I prefer things of importance to be started by post (recorded delivery - keep a copy), so there is proof of delivery -- CF are not very good with communications, so best to keep track of everything.
They will tell you what they want, but most firms require a letter from the donor and evidence that the funds are available. Do not let dad pay any into your account to pay them -- it has to be from a third party.
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Diane.20
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by Diane.20 » Thu Aug 23, 2018 6:36 pm
Thanks very much for advice and answering my question, will put in writing as you suggest and will keep updated with how I get on . Fingers crossed :D
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Lisa Thomas
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by Lisa Thomas » Fri Aug 24, 2018 8:20 am
I agree with Foggy - £3k seems reasonable but ensure you check the equity clause will kick in first.

Here is my short video explaining the full and final offer variation:

https://youtu.be/h4dozq9aGak
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