reason why you wish to end the IVA

[nicky948]

Hi all,

I keep reading that when you make an early f&f payment offer which is from a 3rd party the creditors ask why you wish to finish early.

Is this true and if so is there a best answer to give so to speak?

Thanks in advance

[Foggy]

The best answer is the truth, to be honest. If you fabricate something exotic you might be asked to back it up and the whole thing can then unravel. It is perfectly acceptable to want to end early simply because you want to move on with your life, without the stresses of being in an IVA. Imapcts of the IVA on general and mental health are good reasons.

Early ending is also good for the IP and the creditors as long as the offer is close to what they would have been getting in the long run --- it saves them both time and money on admin.

[nicky948]

The best answer is the truth, to be honest. If you fabricate something exotic you might be asked to back it up and the whole thing can then unravel. It is perfectly acceptable to want to end early simply because you want to move on with your life, without the stresses of being in an IVA. Imapcts of the IVA on general and mental health are good reasons.

Early ending is also good for the IP and the creditors as long as the offer is close to what they would have been getting in the long run --- it saves them both time and money on admin.

Thank you for your quick response.

It's those reasons exactly why I want to finish early, but I wasn't sure if they would be happy to hear that so just wanted clarification.

My starting debt was £10,045.65
I've paid so far £2,160
And remaining balance of £4,560 which includes the 12 month equity clause.

The 3rd party is going to be putting in an offer early next week £4,560, I no it doesn't sound much to what people have but it's worth a try plus you just never know if they will accept it or not.

Wish me luck and will keep you posted.

[Foggy]

Well -- it is a good offer in that they will be getting what they signed up for .... and ... a bird in the hand is worth two in the bush !

Best of luck.

[nicky948]

Well -- it is a good offer in that they will be getting what they signed up for .... and ... a bird in the hand is worth two in the bush !

Best of luck.

Ha ha ha I'm really hoping so, thank you

[kallis3]

Good luck!!!

[Lisa Thomas]

I would offer £4k.

[nicky948]

Good luck!!!

Thanks kallis

[nicky948]

I would offer £4k.

Hi Lisa,

I know your the expert, but I'm scared to offer low as it's bloody cheeky of me plus I don't want them to decline.

Maybe that's just me.

They have asked for the 3rd party to send the following

(1) A photocopy of the ID/Passport or Driving License of the 3rd party offering to close your case.

(2) A very brief letter from him/her stating the exact amount he/she wishes to offer to close your case early. – The letter may be a simple handwritten one

(3) A copy of the bank statements of the 3rd party to show that he/she has the funds to make the full and final settlement.- The funds can be transferred to you but this needs to be specified in the letter.

Lisa can I ask, Once they have this information then what happens next, I'm with CF if that helps?

Do they need anything from me ?

Or is that it until I hear back if it's accepted or declined and how long does it all take?

Thanks

[Foggy]

Nicky, once they have everything the usual timescale is 21 days to draft a variation then around that to give creditors notice -- although many (most) firms ignore these and it can take anywhere between two and six months. CF have a mixed history of dealing with variations and had to actually stop dealing with them for a while until they sorted themselves out --- but that is in the past and they should be quite timely now. As the sum you are offering is the total of outstanding payments it might be an idea to pop in a line saying that the lump sum will be reduced by any monthly payments made in the meantime.

[nicky948]

Nicky, once they have everything the usual timescale is 21 days to draft a variation then around that to give creditors notice -- although many (most) firms ignore these and it can take anywhere between two and six months. CF have a mixed history of dealing with variations and had to actually stop dealing with them for a while until they sorted themselves out --- but that is in the past and they should be quite timely now. As the sum you are offering is the total of outstanding payments it might be an idea to pop in a line saying that the lump sum will be reduced by any monthly payments made in the meantime.

Thanks foggy for the information, I'm hoping there quick but I will now also be prepared it could take longer.

Do they require anything from me in this process?

Great idea about the extra payments, I will add this into the Letter.

[Foggy]

They shouldn't require anything else ( Trouble is they all vary --- mine was done on the back of a phone call -- but that was on payments made to date, so no 3rd party or funds to deal with.)

Best of luck.

[nicky948]

They shouldn't require anything else ( Trouble is they all vary --- mine was done on the back of a phone call -- but that was on payments made to date, so no 3rd party or funds to deal with.)

Best of luck.

Congratulations to you, what a massive achievement and what a hugh relief too.

I have given the 3rd party access to deal with them directly and they will be liaising with the insolvency practitioner advisor (via email) . So fingers crossed I won't be involved in this final process so to speak.