Can absolutely anyone make a F&F offer ?

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michael983
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by michael983 » Fri Oct 20, 2017 11:37 pm
Can absolutely anyone make a full and final offer to their IVA? I'm thinking of doing it when I have around 20 months left (that would include the equity clause year) as I'd rather not go through the equity clause as it could trigger and I'm fearful of this. My partner and I would also like to move in together and for obvious reasons, it's not economically viable until the IVA ends.The worry of what outcome may prevail with the equity clause is also causing me massive unwanted stress. My partner could raise the money and will gift it to me so to meet the IVA's requirements.We both own our own properties and I'd like to be able to sell up and go forward with a reasonable lump sum to put towards a new home for us. I've read that F.A.F.O's are only looked upon favourably if redundancy looms or you're in some kind of financial trouble that would prevent you from making your remaining payments.Is this correct? or once again, can an offer be made under any circumstances at all? Thanks if you can help with an answer.
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Foggy
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by Foggy » Sat Oct 21, 2017 7:04 am
Hi. A F&F offer can be made under any circumstances. It should be based on the months remaining, plus 12 in your case, multilpied by the monthly amount.

Generally this amount can be reduced slightly if you are knocking off a fair amount of time, saving them administration costs, or, as you mentioned, in dire circumstances which might threaten the IVA in the near future.

Depending upon who you are with it could take 2,3, or in some cases, up to 6 months to get sorted. So factor this in. You could put in a condition that the lump sum will be reduced by the amount of interim payments.

At the end of the day, though, the better the offer, the better the chances of acceptance.
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michael983
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by michael983 » Sat Oct 21, 2017 8:42 am
Foggy wrote:
Hi. A F&F offer can be made under any circumstances. It should be based on the months remaining, plus 12 in your case, multilpied by the monthly amount.

Generally this amount can be reduced slightly if you are knocking off a fair amount of time, saving them administration costs, or, as you mentioned, in dire circumstances which might threaten the IVA in the near future.

Depending upon who you are with it could take 2,3, or in some cases, up to 6 months to get sorted. So factor this in. You could put in a condition that the lump sum will be reduced by the amount of interim payments.

At the end of the day, though, the better the offer, the better the chances of acceptance.


Many thanks for that. I have one other question if you could help, please?

When equity release time does kick in during my IVA, I will have approimately 65K equity on a house worth 165K with a 100K mortgage remaining. However, I will have paid off 34K of the whole 43K debt involved in the IVA. Does this mean I only need to get 9K to settle the IVA in full, or would they still be looking for me to give them 85% of the 65K equity if any lender would borrow me those funds?
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kallis3
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by kallis3 » Sat Oct 21, 2017 8:57 am
You would be looking at paying back 100% in the pound plus fees and possible statutory interest. Once you hit that your IVA will finish and any remaining equity will be yours.
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Foggy
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by Foggy » Sat Oct 21, 2017 9:07 am
As Kallis says -- there are also fees and statutory interest to be paid if you get that close.
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Michael Peoples
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by Michael Peoples » Mon Oct 23, 2017 8:06 am
You could look at raising some equity on the property which would hopefully satisfy creditors. Once the IVA is over you could then sell the property and do what you like so maybe contact Shaun Vickery from Select who posts here as he has access to these type of products.
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michael983
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by michael983 » Mon Oct 23, 2017 2:38 pm
Many thanks for all the replies.

I have another question if you could help, please?

I took out my IVA in the autumn of 2014. I've looked at the T&C paperwork and regarding the equity clause, it only says I must try to remortgage to raise further funds. During my initial phonecalls with my provider I was told that I would have to try to remortgage with 2 reputable mortgage lenders and if I was refused, the IVA would then Continue for 12 months. All well and good. My worry: on the website, their IVA terms now stipulate" remortgage and secured loans to be applied for." If I decide to let this go as far as the equity clause, will my IVA still only require for me to adhere to applying to the aforementioned "2 reputable mortgage lenders" as was explained to me when I took it out? Or will I be expected to try to raise the money also through a secured loan as is now stipulated? I have it in writing from them and only a remortgage application is mentioned. Are these companies known to try it on a bit or usually good for sticking to what is written on the paperwork you were provided with.

Also, are you allowed to reveal which company is actually known to take 6 months to set up a full and final offer creditors meeting?

Thanks again :)
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Foggy
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by Foggy » Mon Oct 23, 2017 3:00 pm
In 2014 the Protocol was altered to include secured lending as a release option, though not all providers use that clause. If secured lending is not mentioned in your clause they cannot force it on you. Though, to be fair, if you did manage a remortgage (unlikely) the secured lending might be the better option.
Some firms do try it on, either from not reading your proposal and quoting generic terms, of, in a few cases, literally trying it on!
Payplan is the firm most reknowned for slow service of late, routinely taking up to 6 months for a F&F to be actioned, though they do seem to have shortened this very recently, but still must be one of the slowest in the race.
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Michael Peoples
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by Michael Peoples » Mon Oct 23, 2017 3:43 pm
It does seem that there are lenders out there who will provide remortgage facilities to those in IVAs. I do not know the rates but if you qualify for a remortgage a loan may be cheaper as you may not want to extend the term or switch the entire balance to sub prime rates.
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Shaun Vickery
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by Shaun Vickery » Wed Oct 25, 2017 4:43 pm
In this position I always suggest weighing up your various options....that way you can make an informed choice armed with all the information.
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