F+F offer advice please

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stu1970

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Post by stu1970 » Mon Oct 26, 2020 9:47 am
On December 1st I will be starting my 5th year of my IVA with Stepchange
My payments are £318 with 12 left But I have a joint 10 year mortgage with my wife on our home and a secured load So I really don't think I will be able to Remortgage
So I no ill have an extra 12 months extended on my Iva

So on December 1st 24 payments of £318 = £7632

My question is my parants have offered to help out in making an Full and Final offer What would be an good offer to make that will get accepted ?
and how do my parants do it ? ie. do they give me the money to put in my bank account and I make the payment that way or dose it have to come from there own bank account My parants are in the 70s so not very good on the internet

Regards
Stu

Foggy

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Post by Foggy » Mon Oct 26, 2020 11:28 am
On those figures an offer around £6.5k might do it ( it is impossible to guess, really. I have seen low offers accepted and high ones refused! ).

Your parents will need to make the payment to your IP direct and not give you the money first. When you speak to your IP about it, make it clear that the money is for the purposes of a F&F only and, if the offer is rejected, your parents will retain the funds themselves. Your IP will need to see proof of ID and proof of the existence of the funds ( usually a bank statement ).

You make the offer and the IP will present this to creditors in a variation meeting. If they accept then your parents transfer the funds to your IP and the usual closure procedures begin. A F&F offer can take 2 or 3 months to get through, so you might also want to mention in your offer that payments made after a given date will be deducted from the lump sum, or agree with the IP to suspend payments while the offer is being dealt with.
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

stu1970

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Post by stu1970 » Mon Oct 26, 2020 3:00 pm
If the offer is rejected can you still make a second one or it that it ?

Foggy

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Post by Foggy » Mon Oct 26, 2020 3:01 pm
You could make an improved offer --- but not too many times -- it is, after all, supposed to be the best offer you can make.
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

stu1970

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Post by stu1970 » Tue Oct 27, 2020 9:53 am
Thank you for the info Foggy
is there a temple to use to make the offer or is it just put it all in e email and send it to my ip ?

Sorry for all the questions I just want to make sure I get it 100% right the first time
s marsh

Lisa Thomas

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Post by Lisa Thomas » Tue Oct 27, 2020 11:03 am
I agree with Foggy £6-6.5k seems attractive.
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

Foggy

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Post by Foggy » Tue Oct 27, 2020 11:04 am
There is a template here: https://www.iva.co.uk/letter6-f-and-f-offer-during-iva which I would alter by the addition of a paragraph along the lines of : "This lump sum is being offered by the donors for the purposes of a full and final offer only. Should the offer be rejected the funds will be retained by the donors and will not be available to creditors."

You can also add in any time limiting conditions, for instance, that the amount of any regular payments made after [ given date ] will be deducted from the lump sum payment -- unless you have otherwise agreed with your IP that payments be suspended pending the outcome of the offer. (Keep these suspended payments aside as they will be needed to catch up if the offer is eventually rejected).
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

stu1970

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Post by stu1970 » Sun Nov 08, 2020 10:57 am
just an update

iv just had my 4th annual review and my payments have been reduced to £261 pm
so my last year on my via is 12 payments of £261 x 12 = £3132 I no ill have an extra 12 months added to the end of the iva has I have a mortgaged house so in total

24 x of £261 = £6264

Im going to put forward an f+f offer of £5000 witch my Parents will make
do you think this offer has legs in ok with still paying my ongoing months payments while the offer
is being considered so that would reduce my figure

Thanks

Foggy

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Post by Foggy » Sun Nov 08, 2020 11:41 am
On the reduced payments I would think that the £5k has legs --- certainly worth a try.

Best of luck ! Let us know how it goes.
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

stu1970

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Post by stu1970 » Mon Nov 09, 2020 9:05 am
Would putting that I’m going through a marriage break up help with the f+f offer? Or is this something the creditors are not really interested in

I’m just about to put it all in writing today so want to put it the best way I can

Thanks

Foggy

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Post by Foggy » Mon Nov 09, 2020 9:28 am
Mon Nov 09, 2020 9:05 amstu1970 wrote:
Would putting that I’m going through a marriage break up help with the f+f offer? Or is this something the creditors are not really interested in

I’m just about to put it all in writing today so want to put it the best way I can

Thanks
Use all of the ammunition that you have. A marriage break up is very pertinent as it could affect the IVA going forward with altered I&E and living arrangements. After the dust settled with my marriage break down it was apparent that the IVA was unaffordable and my F&F, based on payments made to date, was accepted.
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

stu1970

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Post by stu1970 » Mon Nov 09, 2020 9:48 am
Thank you Foggy all the information and help you provide is a really help and a lift I really want this offer to be accepted and I can breath a little easier wants it’s been sent off

I’ll let you know the outcome

Once again a BIG thank you

stu1970

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Post by stu1970 » Mon Nov 09, 2020 11:45 am
Foggy can you please advise on this.
Iv rand stepchange this morning to tell them of my office and Iv got an email that reads.

Please confirm that you propose the below:
I would like you to arrange a meeting of creditors to settle my IVA from a third-party lump sum of £5000.00
Provide a full explanation and reasons why the offer is being proposed.
So I can prepare the variation report please send me the following information:
Provide the third-parties name and address.
Provide a redemption statement for your mortgage and any other loans secured against your property
Advise if your IVA contributions will continue until the variation meeting has been held? If no further payments are to be made please provide an explanation why not.


Can you please confirm this is correct

Thanks
s marsh

Foggy

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Post by Foggy » Mon Nov 09, 2020 11:55 am
Yes, this is pretty standard, although I would question why they want a mortgage redemption statement. In the normal course of events they are, of course, assessimng the availability of equity so as to be able to advise creditors fully. However, as we are currently working under the recent Covid-19 amendments (see here: https://www.gov.uk/government/publicati ... a-protocol ) which have been extended until April 2021, there is no need for such an exercise.

"1.12 No attempt should be made to realise a consumer’s home equity under paragraph 9 of the protocol during the pandemic unless the consumer agrees to proceed. The supervisor will retain the discretion to extend the IVA for up to 12 months in order to allow the consumer to complete their IVA. Voluntary release of equity can continue to be included in new proposals."

You have already factored the 12 month extension into your offer.
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

stu1970

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Post by stu1970 » Mon Nov 09, 2020 12:55 pm
Do I just reply to this then with the info and that’s my f+f offer done. Or would you also send a covering letter email with my offer if you were me ? Sorry for all the questions I just want to get it right! First time.
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