F&F offer after 3 months of IVA to high street bank creditors

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by gedo » Tue Jan 16, 2018 4:35 am
I am 3 months into a Iva and I am paying in 150 pounds a month. I would be able to borrow some money from my parents! The creditors are high street banks. Is there a tolerance or % they tend to accept when making an offer! My discounted rate mortgage ends soon and I will struggle to maintain payments as I have not a penny left at the end of each month! Also can you request a payment break for a month or so!
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Forum Expert
Posts: 27708
by Foggy » Tue Jan 16, 2018 7:55 am
The idea is that you do not have much, if anything left over at the end of each month! As long as your allowances cover the essentials, the rest goes to the IVA. If you feel your allowances are wrong you should get them looked at. Yes, in an emergency, your IP has the discretion to agree a payment break --- but these are lifelines, not to be used needlessly, and can be refused.

As for a full and final offer, this is a game of sorts .... you make your best offer --- the higher the better. I have seen low offers accepted as well as high ones refused ----- it is impossible to tell. Usually you offer an amount based on remaining payments, which you can round down slightly to reflect potential savings in administration costs.

If yours is a 5 year IVA and you rent, so have no equity to address, your creditors would be looking at getting back in the region of £150 x 57 = £8550. In your shoes I would be looking at an offer of around £7,000 - £7,500.
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Lisa Thomas
Industry Expert
Posts: 7186
by Lisa Thomas » Tue Jan 16, 2018 9:58 am
I agree with Foggy and note the money from your parents can't be a loan it has to be a gift.

Quick video here on F&Fs:

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