Full and Final settlement never had annual review

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Rick.87
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by Rick.87 » Wed Aug 15, 2018 10:38 am
Hi,

I am currently just into my 4th year of my IVA and may be able to offer a full and final settlement. The first 3 years of my IVA were with Harrington Brooks and I never had a financial review of any kind. As some/most of you may be aware Freeman Jones recently took over HB so my IVA is now with them.

If I was to offer a F+F figure for my outstanding balance what sort of documentation would I be expected to provide?

Thanks

Rick
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Foggy
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by Foggy » Wed Aug 15, 2018 12:06 pm
Rick.87 wrote:
Hi,

I am currently just into my 4th year of my IVA and may be able to offer a full and final settlement. The first 3 years of my IVA were with Harrington Brooks and I never had a financial review of any kind. As some/most of you may be aware Freeman Jones recently took over HB so my IVA is now with them.

If I was to offer a F+F figure for my outstanding balance what sort of documentation would I be expected to provide?

Thanks

Rick


Usually they just require proof of the funds (third party bank statement or somesuch) and proof of the I.D of the donor. If you are a home owner, the amount offered should include an amount in respect of equity release (the 12 months extra payments in lieu), unless you wish to maintain that the equity release clause would not be triggered ... in which case you would have to provide proof by way of a valuation and mortgage redemption statements.

The lack of previous reviews might prove a hinderance to a F&F as FJ would want to make sure that the IVA was in order before closure. It may be that they would let the matter rest and, initially, I would be disinclined to poke that particular sleeping dog.
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Rick.87
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by Rick.87 » Wed Aug 15, 2018 12:55 pm
Hi Foggy, thanks for your quick reply. I don’t have any equity release clauses as I’m not a homeowner. In the what way would a provider normally make sure an IVA was in order? Completing reviews or a final review at least? As I’ve never had any correspondence with either company really apart from the notice of takeover I’m not really aware of what the procedure would/should be at all...
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Foggy
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by Foggy » Wed Aug 15, 2018 2:36 pm
Rick.87 wrote:
Hi Foggy, thanks for your quick reply. I don’t have any equity release clauses as I’m not a homeowner. In the what way would a provider normally make sure an IVA was in order? Completing reviews or a final review at least? As I’ve never had any correspondence with either company really apart from the notice of takeover I’m not really aware of what the procedure would/should be at all...


The main thrust of the completion process is to revisit old reviews to make sure no income was missed / undeclared and no pay rises overlooked. Then a final review for the last 12 month period.
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Freeman Jones
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by Freeman Jones » Thu Aug 23, 2018 7:38 am
Hi Rick.87,

Thanks for your post. I am one of the team here at Freeman Jones.

We would of course be happy to chat through the options for a Full & Final settlement with you. We'd want to understand how your circumstances have changed - because we'd be asking the creditors to agree to the F&F they would want to know why it is in their best interest (compared with you just making the remaining payments into your IVA for example).

In terms of documents they will vary depending on the source of the funds - but typically include:

    Proof of changes in expenditure
    Offer letter from customer
    Offer letter from 3rd party
    Proof of ID for 3rd party
    Authority to hold 3rd party documents for 6 years
    Proof of funds

Really the best thing to do is to give us a call so we can advise you properly.

Thank you,



Ian
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