Looking for advice about offering a F&F offer.

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jites_uk
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by jites_uk » Sun Dec 31, 2017 8:45 am
I am 2 years into my IVA but recently got a health problem which meant i would have to reduce my hours at work, a friend has offered a lump sum for a FF, my IP has agreed to call a variation meeting and i got a letter today saying it has been fixed for the 7th Feb 2018. My questions are
In the letter today my IP had valued my property online and it showed i have quite a bit of equity to my surprise and this was included in the variation report. Will this affect the creditors decision to accept my offer
Secondly, my biggest debt was sold to PRA group recently, if PRA group has spent more money buying my debt than i am now offering i am afraid they are likely to vote no in the creditor meeting. I joined this forum today and i hope i can get some advice. Thanks
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kallis3
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by kallis3 » Sun Dec 31, 2017 9:05 am
Hi,

I would suggest you have your own valuation done as well and also check to what similar properties have sold for recently in your area. Online valuations are usually higher than High Street agents.

As regards your debt having been sold on, they are usually bought for pence. Your IP seems confident.
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Foggy
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by Foggy » Sun Dec 31, 2017 9:46 am
As Kallis says, debts are often sold on for pence in the pound and the new creditor will have much less to lose than the original one as well as be more likely to be looking at a quick resolution.

House valuations and the like have to be done as the creditors are entitled to the full picture in helping them make up their minds. If the valuation shows close to £5k equity it would, as Kallis suggests, be worth getting your own valuation exercise done, but if the equity is in the tens of thousands probably a waste of time.

Best of luck.
jites_uk
Posts: 17
by jites_uk » Mon Jan 01, 2018 10:05 am
Thanks Kallis and foggy. Will be looking forward to the meeting on the 7th Feb. Hopefully will be my first good news for the new year.
I will keep the forum updated. I told them i will keep paying my monthly payment till after the meeting as i think its only fair

kallis3 wrote:
Hi,

I would suggest you have your own valuation done as well and also check to what similar properties have sold for recently in your area. Online valuations are usually higher than High Street agents.

As regards your debt having been sold on, they are usually bought for pence. Your IP seems confident.
jites_uk
Posts: 17
by jites_uk » Mon Jan 01, 2018 4:14 pm
Happy new year everyone, just as a way of preparing for if my FF get accepted finger crossed. How do i pay the lump sum to them. Will the person who provided the money pay them directly or can they give me the money for me to pay it to my IP
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Foggy
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by Foggy » Mon Jan 01, 2018 4:17 pm
jites_uk wrote:
Happy new year everyone, just as a way of preparing for if my FF get accepted finger crossed. How do i pay the lump sum to them. Will the person who provided the money pay them directly or can they give me the money for me to pay it to my IP


Happy New Year.

It is best for the donor to pay them direct, to give a clear audit trail.
jites_uk
Posts: 17
by jites_uk » Mon Jan 01, 2018 4:21 pm
Wow Thanks foggy for a speedy reply

jites_uk wrote:
Happy new year everyone, just as a way of preparing for if my FF get accepted finger crossed. How do i pay the lump sum to them. Will the person who provided the money pay them directly or can they give me the money for me to pay it to my IP
jites_uk
Posts: 17
by jites_uk » Tue Jan 30, 2018 10:39 pm
Hi All
Just an update about my full and final offer. I had been doing 2 jobs so i can pay as much as possible into the iva, 3 years on and i got diagnosed with a condition that meant i would have to give up one of my job. My monthly contribution is 390 and my second job brings in 400. So i offered 8000 from a third party my meeting is the 7th feb but got an email today saying my offer has been rejected. This is the email i got today


tried to call you today but I was unable to reach you.



I rang to discuss the forthcoming variation meeting, scheduled for 7 February 2018 at 11.30am.



Unfortunately I’ve received votes from some of your creditors rejecting the £8,000.00 lump sum offer in full and final settlement of your IVA and the meeting can’t be approved without these creditors’ support.



The reason for their rejection is due to the large reduction in the estimated final dividend they would receive in comparison with your original offer.



They’ve suggested you take a six month payment break from the IVA, which is allowed under the terms of your proposal, to see if your circumstances change. The term of your IVA would be extended by the number of months you missed if you took this option and were able to resume monthly payments afterwards.



If you were unable to resume payments at the end of the payment break it’s possible your creditors would reconsider the third party lump sum offer at a further variation meeting.



Before I advise further, I’d like to understand the likelihood of your situation improving in six months’ time so I’m writing to see if there’s any further information that I can give your creditors.



I’m aware that you were planning to leave your second job because of your plantar fasciitis diagnosis. Please advise if there’s any possibility of you finding another second job that would be more suitable for you in the near future.



It would also be useful to know if your condition is permanent or whether there’s a possibility it will improve in the future.



I would also like to check if there’s any possibility of the lump sum offer being increased.



Please let me know your thoughts on this as soon as possible as I can try to negotiate with your creditors if there’s more information to provide. However, if you think a payment break would be a suitable alternative I can put this in place for you.

I was very disappointed with their reply.. i replied that i cant take a second job and my condition is not improving so they can either reduce my monthly payment by 400 which is more than the 390 i currently pay or make me bankrupt..am that disappointed that i will take bankrupcy at this point. My third party say they are prepared to increase from 8000 to 10000. I told them that too today so will wait to see if they accept it or make me bankrupt.
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kallis3
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by kallis3 » Wed Jan 31, 2018 9:07 am
Hopefully your new offer will be ok.

As to bankruptcy, you may find your IP fails your IVA and leaves you to make yourself bankrupt.
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Foggy
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by Foggy » Wed Jan 31, 2018 9:12 am
Hmmm -- that is a bit of bad news ! I am guessing the couple who have voted so far will, between them, have the over-riding percentages needed.

You have three years left ( 36 months ) plus 12 for equity. What is your current monthly amount ?
jites_uk
Posts: 17
by jites_uk » Wed Jan 31, 2018 10:27 am
My Monthly amount is £390, and the income from my second job is £400


Foggy wrote:
Hmmm -- that is a bit of bad news ! I am guessing the couple who have voted so far will, between them, have the over-riding percentages needed.

You have three years left ( 36 months ) plus 12 for equity. What is your current monthly amount ?
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Foggy
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by Foggy » Wed Jan 31, 2018 10:40 am
Ah, right ..... so your creditors were hoping to get around £18720 over the term (including the extra 12 months for equity). I can see that they would think £8k on the low side --- but should also take the toll on your health into some account.
jites_uk
Posts: 17
by jites_uk » Wed Jan 31, 2018 11:06 am
I started my IVA in 2015 to finish 2020, 390 x 24months = £9360 and with a year's extension of 12 months 390 x 36 = £14040. if with equity I offered 8000 instead of 9360 with just 1360 under I am surprised they rejected it, maybe cos of the equity, so now with equity or 36 months total expected would be £14040 and now with £10000 will see what they say minding that I am going to lose £400 income


Foggy wrote:
Ah, right ..... so your creditors were hoping to get around £18720 over the term (including the extra 12 months for equity). I can see that they would think £8k on the low side --- but should also take the toll on your health into some account.
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kallis3
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by kallis3 » Wed Jan 31, 2018 11:10 am
Is HMRC one of your creditors at all?
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Foggy
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by Foggy » Wed Jan 31, 2018 11:21 am
jites_uk wrote:
I started my IVA in 2015 to finish 2020, 390 x 24months = £9360 and with a year's extension of 12 months 390 x 36 = £14040. if with equity I offered 8000 instead of 9360 with just 1360 under I am surprised they rejected it, maybe cos of the equity, so now with equity or 36 months total expected would be £14040 and now with £10000 will see what they say minding that I am going to lose £400 income


Foggy wrote:
Ah, right ..... so your creditors were hoping to get around £18720 over the term (including the extra 12 months for equity). I can see that they would think £8k on the low side --- but should also take the toll on your health into some account.



Ah (agaiun) sorry -- in your first post you said you were two years in, so I assumed 3 years left, plus 12. You always have to factor in the 12 months, unless you can prove less than £5k equity, so your first offer would have been measured against them getting ( with your months left) £14k, so the new offer seems to have a better chance.
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