F&F offer rejected

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by Suzanne.n » Thu May 11, 2017 7:50 pm
I am in a position to settle my IVA, my original debt was 30000. I have been paying £346 per month for almost 3 years. I have made an offer of 26000 but this has been rejected and the creditors want 100p in the £. I have paid in almost £11000 but this has made no difference to the balance as it would appear that my contributions of £11000 are going to pay off the IVA fees. I am struggling to comprehend how this is the case. The last 3 years have been a total struggle so this is a real blow :(
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by Foggy » Thu May 11, 2017 8:24 pm
I fear this is possibly down to terminology --- did you ask the "settle" the IVA or to make a full and final offer ?

If you have 2 years left at £346 the creditors are only going to get a further £8304 -- and should be happy to get this amount in a lump sum. Maybe an etra 12 months payments on top if you have equity to be addressed.

Might I ask who you are with ?

Edit: Ah -- I see this was funded from a house sale ----- as previously advised this is a windfall and, as such is payable into the IVA in full. The IVA would only end early in these circumstances when you pay the full original debt, plus fees and possible statutory interest.
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by luluj » Thu May 11, 2017 11:48 pm
Agree with foggy's edited comments - unfortunately it is under the windfall clause and therefore you will be required to reach the maximum return
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Lisa Thomas
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by Lisa Thomas » Fri May 12, 2017 8:31 am
Unfortunately if you sold your house BEFORE getting an offer agreed ALL of your share of the equity has to be paid into the IVA unless and until the total costs, interest and debts have been paid in full.

If there are not sufficient funds to cover all of this then your contributions will therefore continue in the normal way until the term has come to an end (usually after 5 years) so it sounds as if you have 2 years of contributions to go.
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