Full & Final question

[disneygal]

Hi there,
I have another question regarding F&F as its been a week now and I still havent had a call back from CF although I did get an email. I am a bit confused really. I have 2 years remaining and pay £260 per month. I own my own home with my partner who is not in an IVA. My mortgage is high and very little equity.

On the email I have had from CF it basically says for a F&F I can offer any amount I want and no mention of the equity release clause.

Option 1:

The 1st option (i.e., closing the IVA without having to go through the creditors) involves an amount of £xxx. This amount clears off all your outstanding debts in full along with the fees of the IVA. Upon receipt of this amount, we will simply pass the IVA to the closures department.



Option 2:

Any amount lower than this will fall under the 2nd option whereby we will need to convene a virtual meeting with the creditors for them to review the offer. Kindly note that acceptance and rejection will depend solely on your creditors at this level.



To submit a Full & Final offer, we require the following from the 3rd party making the offer on your behalf:

· Offer amount (a picture of a short letter signed by 3rd party or an e-mail specifying the amount being offered)

· Photographic ID (a picture of the driving license or passport)

· Proof of Affordability (a screenshot/picture of the third party’s bank balance would be fine)



There is no fixed ‘settlement figure’ applicable for the full and final. Creditors are likely to accept/reject a reasonable offer after considering the amount and source of funds being used to settle the IVA. Taking the above into account, the higher the offer put forward, the more inclined would the creditors be to close the IVA early. Bearing this in mind, it is up to you to advise how much your third party would be willing to propose.

I seem to be getting conflicting information and cant get hold of anyone to speak to at CF any advice?

[Foggy]

What appears to be conflicting ?

Option 1 is a full settlement ( outstandimg debt and fees )
Option 2 is the more usual Full and Final Offer (based on outstanding payments -- including 12 for equity as you are a home owner. Equity now isn't the issue -- creditors would need to be convinced that equity isn't going to increase before the normal end of the IVA).
So 24 regular payments plus 12 in lieu of equity --- would mean creditors are looking at getting, in the normal course of events, 36 x 260 = £9360 and your offer should be based on that. Maybe £8k. I have seen low offers accepted, but also high ones refused. The circumstances / reasons for making the offer will help here --- the more pressing the reasons the more pliable the creditors will be (we hope!).

If you can convince them that there will be less that £5k equity (in your share) in 18 months time, then you can knock the 12 extra payments off and base the offer on 24 x 260 = £6240 and maybe offer £5k