Having contacted Freeman Jones to get an accurate early settlement figure, I've been told I now need to contact them in writing to state my wish to settle, why I want to (Freeman Jones have themselves concluded I can no longer afford my payments due to an increase in personal medical costs), and where the funds are coming from (a very kind friend). The advisor I spoke to actually sounded pretty disgruntled about the whole thing, but maybe he was having a bad day. He did say that once my notification had been received it would be taken to my creditors to decide if they would accept the offer and made it seem that this could be a sticking point.
This confuses me, because my financial situation has about a 1% chance of improving over the next three years, so they're never going to get more money out of me, I can't afford to keep paying which means my IVA will fail and they'll have to go back to chasing me directly, and even if I could carry on paying it wouldn't be more than my current monthly amount, so they'll be getting everything they can get out of me in one go - much less hassle!
So I'm wondering if people have had trouble getting creditors to agree to an early settlement under similar circumstances, or whether the guy at Freeman Jones was just being surly. And has anyone had demands from their creditors for further paperwork/information before they'd decide/accept, and what did they require?
Email Ian at FJ - he is usually pretty good at picking up on the forum and I am sure he will help you.
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.
Bob Marley. http://kallis3.blogs.iva.co.uk
4 years age i failed my iva and then had to go bankrupt this was due to a reduction in my hours I am able to take my pension lump sum in december will i be able to
You are proposing on asking creditor to vary your IVA terms, this is not up to FJ - this is up to your creditors so unforgettably it does fall you to you to put your variation request together so that they can put it to the creditors for you.
Just because an offer might be attractive it still doesn't guarantee creditors will accept it. A particularly disgruntled creditor could reject it and prefer to see you Bankrupted instead (assumed the IVA failed as a result of the rejection).
We have responded to your other post - it has two replies, this is a duplicate.
Yes you can take your pension but if you have not dealt with your creditors they could still take recovery action against you and any pension lump sum, or income from the drawings, could be at risk.
Thanks for the follow up post, it sounds like we've made some progress this week, compared to where you were earlier. I am sorry if my colleague didn't explain himself very well. Your creditors will decide whether or not to accept the Full & Final offer that we put to them. We need to work together to ensure that we present a compelling case to them to persuade them to accept it. So, for example, we may have asked you to provide information about your health condition to show creditors that taking the offer now is in their best interests as (as you say) you are sadly unlikely to be able to pay more in future.
Fri Aug 23, 2019 2:37 pmFreeman Jones wrote:
Hi Cassie,
Thanks for the follow up post, it sounds like we've made some progress this week, compared to where you were earlier. I am sorry if my colleague didn't explain himself very well. Your creditors will decide whether or not to accept the Full & Final offer that we put to them. We need to work together to ensure that we present a compelling case to them to persuade them to accept it. So, for example, we may have asked you to provide information about your health condition to show creditors that taking the offer now is in their best interests as (as you say) you are sadly unlikely to be able to pay more in future.
I am sorry if that didn't come across clearly.
Ian
Hi Ian,
Thanks for clarifying a few things. The gentleman I spoke to on the telephone said my next step was to send FJ an email with the information he'd outlined for me (notification, why, and how). Is that how I should proceed? After that does someone from FJ get back to me to start the process of putting the proposal to my creditors? The agent on the telephone gave me the impression that whatever I sent in my first email would be forwarded to my creditors, and I certainly don't want that to happen if I haven't included every scrap of required information and paperwork.
Firstly once you've had an informal chat with FJ about figures etc
Next step would be to write a formal letter from yourself stating why you would like to settle early and the reasons why. I used a template from google for mine and put a lot of time into it all.
Then your third party donor needs to also write a letter stating they are GIFTING you £££ for the purpose of ending the IVA. Properly with some ID & Bank statement.
It takes upto 8 weeks for the whole process in that time they will draft your proposal and all figures etc then let you look over everything to make sure your happy then sign and date. Then wait for meeting..
Mon Aug 26, 2019 10:32 amDan2991 wrote:
Firstly once you've had an informal chat with FJ about figures etc
Next step would be to write a formal letter from yourself stating why you would like to settle early and the reasons why. I used a template from google for mine and put a lot of time into it all.
Then your third party donor needs to also write a letter stating they are GIFTING you £££ for the purpose of ending the IVA. Properly with some ID & Bank statement.
It takes upto 8 weeks for the whole process in that time they will draft your proposal and all figures etc then let you look over everything to make sure your happy then sign and date. Then wait for meeting..
Thanks Dan. Did you have to keep making your payments during the 8 weeks? I've been on a payment holiday since FJ declared I could no longer afford my IVA, but that's over now and I'm due to make my next payment in 4 weeks.
Fri Aug 23, 2019 1:30 pmLisa Thomas wrote:
You are proposing on asking creditor to vary your IVA terms, this is not up to FJ - this is up to your creditors so unforgettably it does fall you to you to put your variation request together so that they can put it to the creditors for you.
Just because an offer might be attractive it still doesn't guarantee creditors will accept it. A particularly disgruntled creditor could reject it and prefer to see you Bankrupted instead (assumed the IVA failed as a result of the rejection).
Personally I can't imagine a creditor spitefully going down the route of bankrupting me (and therefore getting nothing as I have no assets) for the sake of £2k-ish! But I guess you never can tell :/
I doubt they would do that - would cost them more than that to take you to court!
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.
Bob Marley. http://kallis3.blogs.iva.co.uk
Tue Aug 27, 2019 7:23 amCassieT wrote:
Thanks Dan. Did you have to keep making your payments during the 8 weeks? I've been on a payment holiday since FJ declared I could no longer afford my IVA, but that's over now and I'm due to make my next payment in 4 weeks.
Yeah my F&F meeting is on friday so I'm pretty much still going. If they do accept the offer though you could word in your letter any payments made after such date to be deducted from offer but you had a payment break so I'm not sure on that one. Usually any payments made after the offer has been accepted could be deducted though.
Thu Aug 29, 2019 8:54 amLisa Thomas wrote:
I doubt the creditor would make you Bankrupt but the IVA Supervisor might, depending on the terms.
Surely FJ have ZERO say in whether or not my creditors accept my settlement offer? If my creditors decline my proposal, I thought the worst FJ could do was declare I'd failed to complete my IVA, and put me back at the mercy of my bank and collection agencies?
Thu Aug 29, 2019 8:54 amLisa Thomas wrote:
I doubt the creditor would make you Bankrupt but the IVA Supervisor might, depending on the terms.
Surely FJ have ZERO say in whether or not my creditors accept my settlement offer? If my creditors decline my proposal, I thought the worst FJ could do was declare I'd failed to complete my IVA, and put me back at the mercy of my bank and collection agencies?
Some arrangements have a clause written in, requiring the IP to invoke bankruptcy on failure of the IVA, but I believe this is uncommon these days.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
