I currently have an IVA with freeman jones. I telephoned them to ask about making a full and final settlement on my IVA I worked out roughly what I will be paying if I carried on with my IVA and thought I would offer just over this amount. The person I spoke to said that I would have to pay the full debt off, but if I continued with my IVA then I would not be paying the full amount. Rather confused. Has anybody got any advice please.
As Marty says, they are getting hung up on the word 'settlement'. 'Settlement' generally means the balance of the full original debt, plus fees and possible statutory interest.
A 'Full & Final' is based on remaining payments only ( plus 12 if you are a homeowner and will possibly have more then £5k equity).
However if you did say "full and final settlement", I think the operator is being unhelpfully dense !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
If you have the ready money to pay a lump sum, wouldn't the IVA want this and then you keep on paying anyway? I understood that the final offer usually worked best if a third party lent or gave you the money? could someone clarify this please?
Sat Dec 07, 2019 10:19 amRadish wrote:
If you have the ready money to pay a lump sum, wouldn't the IVA want this and then you keep on paying anyway? I understood that the final offer usually worked best if a third party lent or gave you the money? could someone clarify this please?
Yes, Radish, a F&F is usually funded by a third party donor. However, if you have managed to save a lump from your retained share of extra income, you could use that, although you might have to try to re-seal that can of worms if the offer is rejected !
You can also negotiate to offer to sell the property, or take early retirement / voluntary redundancy for the sole purposes of funding a F&F with the express condition that, should the offer not be accepted, the sale / retirement / redundancy would not take place.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I took early retirement and voluntary redundancy, some of which I used to make a full and final offer which was accepted. The rest I was allowed to keep.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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I called DFD on an occasion when I had two and a half years left on my IVA, and asked if I could pay some extra for the last 2 years - worked out so my IVA would finish 4 months earlier, the advisor (a good one) advised me not to go down this route, and not to ask as they will take the extra (as I admitted I could afford to pay it) and it would go as extra in the pot with the IVA still finishing at the same time.
That was the day I came off the phone a wiser person, and grateful I didn't talk to another advisor, who could have set me up.
Sat Dec 07, 2019 12:34 pmRadish wrote:
I called DFD on an occasion when I had two and a half years left on my IVA, and asked if I could pay some extra for the last 2 years - worked out so my IVA would finish 4 months earlier, the advisor (a good one) advised me not to go down this route, and not to ask as they will take the extra (as I admitted I could afford to pay it) and it would go as extra in the pot with the IVA still finishing at the same time.
That was the day I came off the phone a wiser person, and grateful I didn't talk to another advisor, who could have set me up.
The advisor was, in this instance, entirely correct and some firms would, I am sure, have taken advantage. Since I first encountered IVAs, almost 10 years ago, they have become far more hostile and the emphasis more on creditor satisfaction and fee garnering, by re-interpretation from the spirit of the legislation to the letter of the agreement, than ever.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I agree Foggy, the whole IVA was advertised as a 'one monthly payment' and that is what probably sold it to most people. Best thing I did but DFD tried to read through my agreement and come up with clauses.
I was the only one in the house that worked, so they asked me to agree at the beggining that if my partner at the time, found employment - I would up the pot, as she didn't, they rang when I was during my final 3 months, and asked if I could extend my IVA for 4 months to make up for this lost income they could have had, if she had found work. I didn't even remember agreeing but it was there in black and white when I looked.
