Advice on full and final

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Diane.20

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Post 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 ?

Foggy

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Post 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.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Diane.20

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Post 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 .

Diane.20

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Post by Diane.20 » Thu Aug 23, 2018 4:06 pm
Sorry I meant equity not interest.

Foggy

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Post 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 ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Diane.20

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Post 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 :(

Foggy

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Post 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.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Diane.20

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Post 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.

Foggy

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Post 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.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Diane.20

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Post 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 ?

Foggy

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Post 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.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Diane.20

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Post 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

Lisa Thomas

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Post 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
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
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