Full and Final Offer

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Cupcake08

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Joined: Sat Jan 20, 2018 3:31 am

Post by Cupcake08 » Wed Apr 08, 2020 5:31 pm
Hello,

Due to anti-social behaviour escalation I wish to sell my share in my home (50% share). This will also enable me to make full and final offer with part of equity.

I have contacted my IP and and put together an offer for creditors to come from the equity which is equal to the number of contributions left (including additional year for equity clause).

When I contacted my IP I made it clear this was to complete in full but as a full and final offer which the creditors could accept or reject as they see fit.

I also detailed the figures carefully to moving costs were clear and evidenced.

The IP agreed they would call a Variation Meeting with Creditors but have now queried the amount of equity I would retain.

What with the issues the Anti Social Behaviour was causing me, the stress, recent illness and the current Covid 19 and how it is impacting life I feel really overwhelmed and upset. It doesn't help that many of the debts have been resold and I get regular statements of the debt in full from the 3rd parties.

Property value- £67,500 50% share

Mortgage- £39062.82

Equity- £28,437.18

The costs you provided are:

Estate agent fees-£2400

Conveyancing £1500

New rent costs - £10,050

Total costs - £13,950

This leaves £14,487 and you would like to offer £7000. This leaves £7484 is there a reason you need to retain this? As your debt balance exceeds the £7000 you are offering your creditors would want to know why you aren’t offering more. Please advise me if there’s another reason why you need to retain the £7484

I pay £220 per month and my IVA started in August 2016.

My understanding was even if the IVA continued and the equity clause was invoked I would still be able to retain an amount.

Can anyone advise? I don't in these circumstances expect to give all equity to creditors.

Thank you and hopefully no judgement.

All the Best

Minnie

Foggy

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Post by Foggy » Wed Apr 08, 2020 6:26 pm
If you sell during the IVA you are expected to pay the equity to your creditors .... all but 15%, which you keep.

To use equity as a bargaining tool in a F&F needs to be approached differently. Unfortunately you have already put all your cards on the table! What should have been done was to offer to sell, for the purposes of a F&F only ---- if the offer was rejected you don't sell (as far as IP and creditors are concerned).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Cupcake08

Posts: 17
Joined: Sat Jan 20, 2018 3:31 am

Post by Cupcake08 » Wed Apr 08, 2020 6:34 pm
Thanks Foggy. By my calculations the £7k equity they are querying would exceed the 15% so the offer I made in good faith is at least in order. I have reached the decision to sell after 2 years of real difficulties of living which has impacted by health and well being significantly.

The IP requests full disclosure when requesting variation. I feel the offer is fair and made in good faith; it is giving them what they would receive as I don't believe the maths stacks up for a remortgage when the time comes as I have factored in an additional year of payments.

It is just a bad business all round. Hopefully being honest pays off.

Foggy

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Post by Foggy » Wed Apr 08, 2020 6:50 pm
May I ask the reasons for you havinbg a 50% share ? Have you purchased with a partner / friend / parent, or is the property a shared ownership property with a housing association ?

I ask because, if the latter, there is every likelyhood that a remortgage or secured lending would be impossible anyway, so the creditors would have only got the 12 monthsn in any event.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Cupcake08

Posts: 17
Joined: Sat Jan 20, 2018 3:31 am

Post by Cupcake08 » Wed Apr 08, 2020 7:08 pm
Yes Foggy, the remaining 50% is owned by a Housing Association.
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