Final settlement ?

[Southuk]

Hi. I’m currently with creditfix and stated to them my partner wants to gift me some money to clear my iva early

I’m currently paying 397 a month. Finish April 2020. They told me an offer of 12556 or nearest as possible more likely to be accepted

I only have potentially 9-10k to offer

My circumstances with work is due to change in 2 months time and i will be loosing 1000£ a month. Which at my current income expense would leave me in the minus disposable so have to re do to work out a figure but I’m sure it’s gonna be a lot less then 397 agreed to have. Which makes that 12556 left to pay not applicable in few months time

Would this be explained to creditors and a lower figure might be accepted? Reading around forum some say have even offered half amount and been accepted. Some say full and not. So realise not a straight science

can anyone give advice ?

[Foggy]

Could you, please, clarify your end date --- you put 2020, so about 6 months to run, which doesn't sound right on those figures. Also are you a home owner?

[Southuk]

I’m so sorry. My typo. April 2022
I am not a home owner

[Lisa Thomas]

£10k seems like a very good offer to me. Its up to creditors to accept not your IP.

Depending on how you wish to put the offer forward you will potentially make a few more payments whilst the variation meeting is called and held (of you could ask that any contributions made during the period are deducted from the lump sum payment).

Your IP possibly gave you that figure as a starting guide to try to be helpful to you.

There will be savings to creditors on their administration costs.

FYI some IPs charge c£500 for the variation meeting.

[Foggy]

I agree with Lisa that £10k is a decent offer to make --- the amount on offer is up to you, not up to your IP and I have seen many a low offer accepted (as well as a few high ones refused). Whether to accept or not is up to your creditors.

[Southuk]

Thank you for your feedback. Many posts here I have seen is people writing their letters to show this figure and including any future payments being deducted of lump sum of accepted from date of letter. How and where do I state that.

My ip is asking for

A short email/letter from the person stating his/her offer
A copy of the person’s ID/driving license/passport
A copy of person’s bank statement to show availability of funds

[Foggy]

There is a brief pro-forma letter here: https://www.iva.co.uk/letter6-f-and-f-offer-during-iva

Simply add a paragraph along the lines of "I shall continue to make the agreed monthly payments whilst this request is being considered, but any payments made between xx/xx/xx and the variation meeting will be deducted from the lump sum offered. "

Alternatively, agree a payment break, pending the creditors meeting, whereby regular payments are suspended. Keep this money aside, however, in case the offer is rejected, as the resulting arrears will need to be repaid.

[Southuk]

Can you advice best way to word about the money for the settlement of not accepted won’t be available to me
From my partner.
If rejected. I don’t have access to that money

[Foggy]

Can you advice best way to word about the money for the settlement of not accepted won’t be available to me
From my partner.
If rejected. I don’t have access to that money

"Please note that this money is being offered solely for the purposes of a F&F offer. Should the offer be rejected the money will be retained by the donor and will not be available to creditors. "

[Southuk]

Hi. If my settlement is accepted
What’s the process in completing

Send the money and then they issue certificate?
Do I need to supply further bank statements of money earned so on
Yearly review was December. Hopefully accepted settlement January

[Foggy]

They will still need to do a final review, so may require statements and pay slips.

Once the offer is accepted, you will make the lump sum payment and then the IP will start the usual completion checks -- it could be a few months before you get your certificate, during which time you are still bound by the IVA.

[Southuk]

So I’m bound till I receive the certificate. Do I still make my monthly payments ? And any extra income over the 10% still should be paid into the iva?

[Foggy]

Once you make the agreed lump sum payment you do not make further monthly payments, nor do you need to account for overtime from then. You are still bound in respect of any windfalls, inheritances or after acquired assets until the CC is issued. You are still required to pay in any PPI you might get, even after the cc is issued.

[Lisa Thomas]

So I’m bound till I receive the certificate. Do I still make my monthly payments ? And any extra income over the 10% still should be paid into the iva?

That depends on how you word, and what you offer, as part of the f&f.

Suggest you incorporate a clause that says any payments made whilst the decision is made will be deducted from the lump sum.

[Southuk]

Thank you for all the advice given

Update: just had my full and final accepted. ! Over the moon.

Quite a lot less then how much were outstanding which is even better

Thanks again
Not sure next steps once made the payment but guess I’ll find out soon enough.

Off I go to do some overtime