They do not need to be told it is a loan -- all they need know is that they are third party funds ( I am assuming here that your partner is not in the IVA ) and that they are for the purposes of a F&F only --- should the F&F be rejected the third party will retain the funds and they will not be available for the creditors --- and that the IVA will continue to run as at present.
They will require a letter from the third party, and, possibly, bank statements showing tat the money is there. It is best that they come out of the donor's account straight to the IP after the F&F is accepted --- do not pay them into your account first !!
ryan303 wrote:That's clarified a few things.
What exactly is the difference between a F&F and settlement?
My guess would a settlement means you are willing to pay out the entirety of the monies owed?
Yes -- a settlement is generally taken to be paying the remaining balance of the full original debt, plus fees and possible statutory interest, whereas the Full and Final is an offer to pay whatever the creditors are expecting to get under the terms of the IVA should it run its course.
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