F&F Settlement in Year 3

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EMMAFUDGE

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Post by EMMAFUDGE » Sun Jul 25, 2010 3:32 pm
My partner entered into a 5 year iva in 2007, in 2008 this was extended to 6 years as he was unable to make the additional £125 month payment on top of the £360 month payment in years 2 -5 as he had lost his job and had starting working on a self employed basis. He is currently paying £360 a month and has 31 more payments to make. There is an equity release clause in year 4 but now house prices have dropped there is no equity left in his house. Rather than see him struggle each month I would like to make a f&f settlement for him but I am obviously limited to the amount which I have to offer. I can raise about £7500 - Is this worth offering at the this time? My partners work is seasonal and he struggles in the winter months so will the creditors take this into consideration?
Any help would be greatly appreciated
 
 

Shining

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Post by Shining » Sun Jul 25, 2010 3:56 pm
Hi Emma welcome to the forum.

I'm not sure about F&F amounts and will keep this bumped up for a professional opinion but do know the nearer the original dividend the better when offering a F&F.

Does sound as though your partner is struggling with seasonal work, is his IP aware of this? x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

EMMAFUDGE

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Post by EMMAFUDGE » Sun Jul 25, 2010 4:23 pm
Hi Lesley
Thanks for the welcome. Hopefully someone might help out and give us some guidance. My partner is with DFD and they are aware of the situation and also that his income has fallen dramatically since becoming self employed, but they dont seem in the slightest bit concerned and have offered no advice regarding this.
 
 

kallis3

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Post by kallis3 » Sun Jul 25, 2010 4:30 pm
I'm sure Declan will pick up on this tomorrow and help you out.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

Shining

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Post by Shining » Sun Jul 25, 2010 6:12 pm
We'll keep it bumped up for Declan as like Jan says he will help you out x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

MelanieGiles

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Post by MelanieGiles » Sun Jul 25, 2010 7:22 pm
First of all a complete re-review of his current income and expenditure ought to take place to see exactly what his disposable income actually is. If this is significantly lower than £360, no wonder that he is struggling, and this should form the basis of whether your offer of £7,500 is in line with the level of his future contributions.

It is great that you are wanting to help him out - and I do hope that you will find some common ground with this IP firm.
Regards, Melanie Giles, Insolvency Practitioner
 
 

EMMAFUDGE

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Post by EMMAFUDGE » Mon Jul 26, 2010 12:49 pm
Melanie

We have wrote to dfd explaining the situation, my b/f was made redundant from his job 6 months after his iva started, he had 6 months of unemployment and after being unable to secure a job he became self employed, he earns a low income and he also receives some tax credits. DFD are aware from the 2 annual reviews which have taken place that his income has dropped considerably, about 10k per annum and that his family are helping him with day to day expenses and his iva payments. As I said previously all that has happened is that the term has been extended to 6 years as initially the agreeement was to increase the payments by £125 per month when his eldest daughter left school and he was no longer paying maintenance, this was whilst he was unemployed and his payments that he had been making in maintenance had been reduced to £5 per week due to his situation. He therefore couldnt make increased payments, dfd called a creditors meeting and agreed to extend the iva to 6 years.
Do you think £7500 would be a reasonable offer? I really cant afford anymore but the worry of making these payments every month is getting to me
 
 

MelanieGiles

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Post by MelanieGiles » Tue Jul 27, 2010 1:38 am
It is hard for me to say - but I know a man who probably can! Declan - if you are looking in, please could you help this client of your firm who seems to be making a reasonable attempt to get creditors paid.
Regards, Melanie Giles, Insolvency Practitioner
 
 

EMMAFUDGE

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Post by EMMAFUDGE » Tue Feb 08, 2011 10:28 am
Good news, DFD held a creditors meeting yesterday, and our offer, of £6500.00 (this was reduced as it took a while to get the house valued and we had been making the monthly payments) was accepted. Just got to go to the bank today to pay the cheque in. My partner, who is not an emotional person at all, had tears when DFD told him the offer had been accepted. So happy for him. Thanks to all for your advice on here, brilliant forum.
 
 

kallis3

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Post by kallis3 » Tue Feb 08, 2011 10:39 am
Fantastic news Emma, I'm really pleased for you both.

Good luck for the future.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

Michael Peoples

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Post by Michael Peoples » Tue Feb 08, 2011 1:47 pm
Congratulations from me too and your boyfriend is a lucky man. Make sure he takes you out for a nice treat possibly on Valentine's as he is now debt free.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

MelanieGiles

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Post by MelanieGiles » Wed Feb 09, 2011 12:11 am
Well said from the expert on Valentine's Day treats Mr Peoples!!

I trust you have your table booked at somewhere pricey?
Regards, Melanie Giles, Insolvency Practitioner
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