Full & Final without Funds

[mushmansax]

HI Guys,
I started my IVA in September 2019 with Freeman Jones making payments of £105 per month x 60 months = £6,300 total.
In spite of lower wages through 2020 due to being on furlough, I have continued to make payments due to lower expenditure through not having the expense of work travel.

I took on a second job in December as a 3 month temporary contract at the permission of my primary employer, and was paid £1330 after tax on Christmas eve. £1320 has been paid as a one-off payment into the IVA bringing my total payments to £3000 dead on including December's normal instalment.

I believe I can raise £3300 from that job and would like to offer it as full and final payment at the end of February, along with paying my normal monthly instalments, and have seen that F&F offers normally take 2-3 months to confirm.

I'm hoping that my continued payments through 2020 will put me in good stead, along with the one-off payment today which is over the 50% of extra wages that the agreement calls for.

Is it possible to make that offer now, under the agreement that should it be rejected, FJ would only be entitled to 50% of any further wages per the agreement, or should I hold on to the monies until the full amount is in the bank and can be offered?

Thanks in advance.

[Foggy]

You can place whatever reasonable terms you wish on the offer. Personally I would bank the 50%+ share of the extra income and add to it, going forward, until you are in the position of being able to offer the remaining payments in one lump sum and the secondary employment has ended.

[luluj]

Totally agree with foggy - bank it and add to it, offer when you are position to pay it if approved. You never know right now when you will need that money for an emergency.

[mushmansax]

Thanks for the response guys. Sounds like a plan to me!

[clare357]

Hi, just reading all your comments,I'm in an IVA with creditfix, I'm in my second year with them and looking to finish my IVA early.
Can I use my own savings to pay this off or does it have to come from a friend or family ?
It does state on their website you can do it if you have sufficient funds available.


Thanks Clare

[Foggy]

As already mentioned in your other post on this subject:

You can use your own savings if these savings have been amassed within the terms of the IVA i.e are your share of overtime or bonus payments.

If these savings were in your account prior to the IVA they should have been declared as an asset and paid to creditors, unless otherwise agreed. If you have amassed them from, say, spending £200 a month on shopping rather than an agreed £400, then it could be argued that your expense allowance is inflated and your payment increased accordingly --- they may or may not claw back the excess allowances.

[mushmansax]

Since my last post my circumstances have changed - for the better really.

The temporary job I was in actually offered me to stay with quite a nice £20k per year salary increase. Due to the 10% 50/50 rule I worked out that my payments would have increased by about £600 a month and because of that any F&F offer would be the same as paying off the debt with fees.

I was given a settlement figure of £8k mid April and paid £2k so far so hoping to be able to pay the balance in the next 6 months.

It's ironic really - I had paid a large portion of my wages into the IVA while under a temporary contract, to a point where they have now been paid the same amount as the 5 year term. So if my temp contract had been ended and I went back to only being able to pay the minimum amount, in theory I could have written to them and asked the IVA to be closed. But now I have the added monthly salary, I will need to pay it all back with fees.

I say that, but I do understand debt is debt, and the IVAs aren't about getting off the hook for a portion of it.

They did offer for me to end the IVA without being required to pay the fees (IE reducing the settlement amount by maybe £1500) but warned that if I did that, the creditors could add the interest that would have accrued over the last 18 months and start chasing harder. So I figured staying in and working hard to get it closed off was the better option.