Full And Final Offer Advice

[Si1991]

Hello,

Looking for some advice, I currently am paying £100 PM in a joint agreement.

Myself and my ex have since split up and i'm looking to settled my agreement up and be done with it for good..

We have 2 1/2 years left - £3000 to pay including the 6th year, We only have one creditor (Lloyds Bank) i'm looking for some advice on what they might accept, I know its difficult t gauge but if i went in for £2500 do you think this would be looked at seriously? what happens if it is rejected? Can you come back with another counter offer?

Thanks

[Foggy]

OK --- when you say 'joint agreement' you are both in your own IVA's but they are interlocking. Are you looking to finish the whole shebang, or just your part of it ?

If the whole thing I would think £2.5k would be looked at seriously and, yes, you can come back with an improved offer if it is rejected.
I have to say that, for peace of mind, the whole thing being closed early would be better, otherwise there will still be potential issues with the other arrangement affecting the property when it comes to equity release.

What happens if it is totally rejected depends on how your offer was couched ---- if you say "Our marriage has broken down and we wish to clear finances up and no longer be associated", then you can stipulate that, in the event of a rejection, the IVA will continue 'as is'. If you say " Our marriage has broken down and we can no longer afford to make payments", the IVA could be failed.

[Si1991]

Hello Foggy,

Yes they are interlocking, I have just have to take the hit any pay it all myself (My Farther) as its one less thing to think about and sort every year.

Do you know how long it usually takes to get a response? Having lloyds as the only creditors is this a better situation than multiple?

Also the fact she would like to be paid out of the house, Which my Farther is going to help with this also on a deed of trust.

[Foggy]

It usually takes 2 - 3 months to get this done. Covid might slow this down. Having just the one creditor makes things simpler, but gives them all the voting power.

[Si1991]

Thanks Foggy,

Will they take £100 off each month we are waiting for it to be agreed?

Also what is the best way to approach this? Just contact our IP?

[Foggy]

There are several ways of dealing with payments and you have to ask for which one you prefer:

1) Continue with payments -- gives creditors slightly more, so better offer, but can allow the IP to drag his feet in the hopes of getting more !
2) Specify an end payment date -- you still make the payments but state that any payments made after a given date will be deducted from the lump sum offer. And
3) Agree a payment break with your IP, effective when you make the offer. This has to be agreed in advance and, if the offer is rejected and the IVA continues as before, the 'missed' payments will be added back on at the end.

Different firms have different ways of starting the ball rolling. Some will be happy with an email, some would prefer a letter whilst a few will act on a phone call. When my marriage went south I basically started with a phone call saying "Help!" --- but I was lucky and the person at the other end basically took over everything.

[Si1991]

Thanks Foggy for your help, I mean does any one of the 3 help get an acceptance quicker or more likely?

[Foggy]

As broad as it is long really --- depends on how efficient your provider is.

[Si1991]

I think it is Ebengate - Was Vanguard, I have had a few calls with them recently and they are not very helpful one bit :/

[Foggy]

Your firm is still Vanguard (Mr Jackson ? ) but Ebenegate do all their administration now. The company is Mauritius based and I get the impression that an IVA is a new thing to them, so support at the moment is a bit hit and miss.

[Si1991]

Yes foggy Peter Jackson, I had called a few times and i have spoken to a couple of people who i couldn't understand and didn't really know what i was asking.

Let's hope that in the department i need its simple.

[Si1991]

Just another question on this Foggy,

What if i asked to split the IVA so i can pay my side of things off only? would this be an option that saves me paying her half of the IVA?

Does both parties have to agree to split it or can i just tell them that i want to do this?

[Foggy]

Even if you do split the arrangements hers will still have a call on equity on the property, so you would not be free of it anyway. Also the minimum payment to make an arrangement viable is usually around £80 to £90, so the amount required from you would not change much.

[Si1991]

Thanks Foggy,

So basically get it all cleared up and take the hit myself then.

[Foggy]

Thanks Foggy,

So basically get it all cleared up and take the hit myself then.

All I can say is that, if I were you, that is what I would do --- then at least you know this is that on the IVA front. There is likely to be a restriction on the title deeds, so make sure that is removed by your IP when they issue the completion paperwork ( It is sometimes overlooked) .