F&F offer advice please

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Marty171

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Post by Marty171 » Mon Jul 22, 2019 9:38 pm
Hi everyone,

my IVA started July 2017, currently 2 years in 3 years remaining as no equity release. currently paying £280 per month.

currently i live at home with my parents, however soon they are going to be selling the house and moving to Spain.
they've both just, cashed in there pensions. at the minute i pay £500 a month for board and towards bills

so with my mam and dad moving to Spain i would have to start renting, after looking for a flat the cheapest rent i can find for a 1 bedroom flat is £450 per month with bills on top its about £700. this would mean i would only be able to afford about to pay about £100 a month at most. because of this my mam and dad have offered to pay my IVA off, however I've spoke to vanguard for some advice and they aren't able to give me much of an idea of how much to offer.

My Mam and dad can give me around 6.5k. The total amount of payments remaining on IVA would be £280 x 36 = £10080.
is there any chance they would accept this?

These are the current creditors included in my IVA, I don't know if anyone has had experiences of dealing with them and the likelihood of them approving and offer.

Max Recovery £ 2,614
Max Recovery £ 5,059
Pra Group Uk £ 5,007
Pra Group Uk £ 262
Capital One £ 1,440
Vanquis Bank Limited £ 3,393
Arrow Global LTD £ 2,696
Myjar £ 1,408
Tti-Finance £ 2,519
Tsb Current Account £ 2,786

reason for asking if i feel guilty my mam and dad giving me money when it was my fault i got in this situation and ideally the lower offer they would accept the better.

i don't know if they would take into account circumstances, because really an offer would be the most beneficial for all parties involved. would either be 36 x£100, me going bankrupt or taking the offer.

probably just rambled a bit here not good at explaining things, hopefully it makes sense, any help would be much appreciated.
IVA Started 07/07/2017
F & F Accepted 06/09/2019

Foggy

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Post by Foggy » Tue Jul 23, 2019 6:56 am
Only your creditors are the ones who can say they would accept the offer, given the options. I would have said nearer £8k would be more likely, but have seen very low offers accepted in the past.

Vanguard are correct in not being able to suggest a figure as the offer is yours to make, not theirs.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Lisa Thomas

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Post by Lisa Thomas » Tue Jul 23, 2019 8:00 am
If you explain in your offer that your expenses are about to go up and your contributions would have to be reduced accordingly, if there is any way for the IVA to survive, this might make the F&F look more favorable/in line with what you will pay in total contributions if creditors were to accept a reduction.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk

Marty171

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Post by Marty171 » Tue Jul 23, 2019 9:47 pm
Tue Jul 23, 2019 8:00 amLisa Thomas wrote:
If you explain in your offer that your expenses are about to go up and your contributions would have to be reduced accordingly, if there is any way for the IVA to survive, this might make the F&F look more favorable/in line with what you will pay in total contributions if creditors were to accept a reduction.
Tue Jul 23, 2019 6:56 amFoggy wrote:
Only your creditors are the ones who can say they would accept the offer, given the options. I would have said nearer £8k would be more likely, but have seen very low offers accepted in the past.

Vanguard are correct in not being able to suggest a figure as the offer is yours to make, not theirs.
Thanks very much for the advice both of you much appreciated.
IVA Started 07/07/2017
F & F Accepted 06/09/2019

Marty171

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Post by Marty171 » Fri Jul 26, 2019 6:32 pm
Update : Sent vanguard an offer of £6500 ,

Please find attached a copy of the review I have completed based on you residing alone and your new income.

It shows an affordability (estimated) of £230 per month which would equate to £8,778.00 if the IVA were to continue under the current terms.

Is there anyway an increased offer can be made otherwise we are at risk of the creditors rejecting the Full & Final, I can’t make any guarantee’s whether they will approve this but I think it will be a more realistic offer for them to consider.

This had not taken into consideration my new I&E which would mean the most i could pay if the IVA was to continue was £130 per month

so continuing under the current terms would mean i would pay back £4,680 130*36 so i explained this and got this response.

''Good Morning Martin,

I have finished the review and I can proceed to look at proposing the full & final for you.

We will be back in touch in due course.

Kind Regards''



is this a good thing or does it make no difference the fact the IP are now proposing the offer, does that mean they think it might be accepted as so far its the most positive response i've had?

Cheers,
Marty
IVA Started 07/07/2017
F & F Accepted 06/09/2019

Marty171

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Post by Marty171 » Fri Jul 26, 2019 6:34 pm
Also would any of the creditors try and make me bankrupt i know its hard to know, but i have no assets so they wouldnt get anything
IVA Started 07/07/2017
F & F Accepted 06/09/2019

Foggy

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Post by Foggy » Fri Jul 26, 2019 6:39 pm
Effectively they will be saying to the creditors that they will get more, in the long run, by accepting the £6.5k offered -- so it looks promising ... although it is impossible to call.
They are unlikley to make you bankrupt as it costs them a lot in fees to do this and stand to get nothing back at all.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Marty171

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Post by Marty171 » Fri Jul 26, 2019 6:49 pm
Fri Jul 26, 2019 6:39 pmFoggy wrote:
Effectively they will be saying to the creditors that they will get more, in the long run, by accepting the £6.5k offered -- so it looks promising ... although it is impossible to call.
They are unlikley to make you bankrupt as it costs them a lot in fees to do this and stand to get nothing back at all.
Thanks for the quick reply Foggy, fingers crossed i've heard they can take a few months but vanguard always seem on the ball so hopefully ill know sooner rather than later, will keep you posted
IVA Started 07/07/2017
F & F Accepted 06/09/2019

Marty171

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Post by Marty171 » Sat Aug 10, 2019 1:26 pm
Update :

Vanguard drafted the F&F, sent me a few documents relating to it.

Just got a few queries regarding it, i was under the impression that a F&F would save on IP Fees so the creditors would be more likely to go for it.

however it looks as if the fees are going to be £774 more than what they were originally going to be?

Image

just a bit worried its got less chance of being accepted now as the amount I've already paid + the £6500 offer, The creditors are going to be receiving less than i originally thought.

Cheers,
Marty
IVA Started 07/07/2017
F & F Accepted 06/09/2019

Marty171

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Post by Marty171 » Sat Aug 10, 2019 1:27 pm
also the variation meeting has been set for the 6th September. so fingers crossed
IVA Started 07/07/2017
F & F Accepted 06/09/2019

Foggy

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Post by Foggy » Sat Aug 10, 2019 1:54 pm
F&F offers do not usually save much on fees to IP's as these are often agreed as a percentage of revenue, whether that revenue arrives in 5 months or 5 years. The fees will also increase by about £500 to cover the extra work involved in the offer.

Creditors often make savings,however, as they are not administering small amounts over a number of years, which costs them in time and resources. They also 'benefit' by getting toxic debt off off their books and, in the end, will probably get more in a reduced dividend than they would if they sold the debt on. Creditors do not want to be tied into an IVA any more than you do :-)

Best of luck for the 6th.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Marty171

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Post by Marty171 » Sat Aug 10, 2019 4:03 pm
Sat Aug 10, 2019 1:54 pmFoggy wrote:
F&F offers do not usually save much on fees to IP's as these are often agreed as a percentage of revenue, whether that revenue arrives in 5 months or 5 years. The fees will also increase by about £500 to cover the extra work involved in the offer.

Creditors often make savings,however, as they are not administering small amounts over a number of years, which costs them in time and resources. They also 'benefit' by getting toxic debt off off their books and, in the end, will probably get more in a reduced dividend than they would if they sold the debt on. Creditors do not want to be tied into an IVA any more than you do :-)

Best of luck for the 6th.


Thanks for the advice again Foggy :D
IVA Started 07/07/2017
F & F Accepted 06/09/2019

katana2471

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Post by katana2471 » Mon Aug 26, 2019 7:03 pm
I have been accepted by sprout loans
And they are going to forward my offer to the creditors.
I'm half way through my Iva
So just waiting to hear when my variation meeting will take place.
I hope you get a good result.
Keep us informed.
I'm nervous 😖

Marty171

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Post by Marty171 » Fri Sep 06, 2019 9:21 am
meeting currently going on, got everything i can have crossed
IVA Started 07/07/2017
F & F Accepted 06/09/2019

Foggy

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Post by Foggy » Fri Sep 06, 2019 10:01 am
Fri Sep 06, 2019 9:21 amMarty171 wrote:
meeting currently going on, got everything i can have crossed
Good luck -- chase them for an answer if you don't hear soon.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk
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