Ending an IVA, and increase in Salary

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Foggy
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by Foggy » Wed Mar 22, 2017 8:52 pm
What happens if a F&F is rejected depends on the reason for the offer and the wording of the offer.

If you are making the offer because ongoing payments will be impossible, then rejection of the offer would mean the IVA fails, as you can no longer make payments.

If you are making the offer to simply get on with your life then include a sentence or two in the wording stating that, should the offer be rejected, the IVA will continue on the currently agreed terms.
dannygee22
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by dannygee22 » Wed Mar 22, 2017 8:56 pm
Great, thanks for your help.
dannygee22
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by dannygee22 » Fri Mar 24, 2017 1:10 pm
Hi again,

Final question then I think I am ready to make the offer to the IVA company.

I have a family member who is willing to help out, I just need to check opinions on the best way of doing things.

My initial thought is I pay them the £990.19 they claim is owing, and then make an offer for full & final settlement. Would that be the best way to go? or would it make more sense to make a full & final settlement offer that in some way includes this £990.19 in one go?

Any info again, gratefully received.

Thanks

Dan
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Foggy
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by Foggy » Fri Mar 24, 2017 1:15 pm
I have yet to be convinced that you actually owe this £990 - odd. But, if you are happy to pay it, it would be better paid first. This is simply so that you can go to the creditors with a F&F offer in a position of not being in arrears and fully compliant with the agreement -- more brownie points that way.
dannygee22
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by dannygee22 » Fri Mar 24, 2017 1:41 pm
Perfect, thanks. That's my thinking too, I could argue this for a long time, but as I'm in the position to pay it, I would prefer to to get it off my back. My theory is they may well then be more willing to listen to a full and final offer, and I can finally be rid of this.
Thanks for all your help, I will let you know the outcome.
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Michael Peoples
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by Michael Peoples » Fri Mar 24, 2017 1:42 pm
I agree that the £990 may not even be due so personally I would not pay it until proven otherwise. Paying this money almost acknowledges that it is due which would have the affect of upping your surplus income. This means that creditors could be better off taking the increased payments for the remainder of the term rather than the one off so perversely paying the £990 could actually make your offer less appealing and not more!

There are a number of ways to look at things.
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Foggy
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by Foggy » Fri Mar 24, 2017 2:30 pm
It shouldn't be a protracted case to see if it is actually owed -- simply ask your IP to show you where they think this arises (presumably the pay increase), then to quote, chapter and verse, under what clause in the agreement. It could be that your increase in income clause has been drafted at odds to the normally used clause -- but might not be. We have had instances where the IP ( or more likely his minion) has misinterpreted the clause and had to back down when challenged.
dannygee22
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by dannygee22 » Fri Mar 24, 2017 4:15 pm
Ok, makes sense. I will have a look st this carefully.
Thanks
dannygee22
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by dannygee22 » Mon Apr 03, 2017 1:03 pm
Hi Again,

I have just had a income and expenditure review, and it has gone very badly. They are still chasing me for the outstanding money, and I can't see how they can for pay rises, but that is another issue. I am awaiting a response on that.

My income and expenditure has gone up from £53 per month to £167 per month. Which is obviously a huge increase. As I mentioned before, I have a a family member who can offer me an amount for full & final settlement, but they can't offer me £10,000, which is what the monthly payments now equate to.

The stress that this is causing me and my family is getting close to too much to bear, and I need a resolution. Do you think it is realistic to think that if I offer £4000, bearing in mind my previous payments came to £3072, that it is likely to be accepted?

For information, and I'm not sure if this is relevant, when the IVA was accepted 75% approved it, and 25% did not.

Any info would be greatly appreciated, I just need to know what I'm dealing with here.

Thanks

Dan
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Michael Peoples
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by Michael Peoples » Mon Apr 03, 2017 2:31 pm
Bear in mind that if your surplus increases then your IVA payments should normally increase by half of that surplus. This should make your offer more attractive.
dannygee22
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by dannygee22 » Mon Apr 03, 2017 8:02 pm
Thanks again.

Here is my suggested template that I want to send to my IP. Any hints and tips on what I should add or remove?

To Whom it May Concern,

Full and Final Settlement

REF : xxxxxx

Further to our telephone and email correspondence, I would like to formally ask you to arrange a variation meeting on my Individual Voluntary Arrangement, in order for a third party full and final settlement offer of £4000 to be made via Bank Transfer.

The reason I would like to offer a full and final settlement on my IVA is that it is having an extremely detrimental effect on my family life and mental health. I am struggling to deal with the pressures that have come alongside the acceptance of the IVA. I have struggled with depression in the past, and am concerned that a severe recurrence could be imminent.

Please find enclosed a confirmation letter from xxxxx offering the full and final settlement sum of £4000. Please note this is only available to the IVA on the acceptance of the offer, and if the offer is rejected this money will not be available.



I look forward to your prompt reply.


Yours Sincerely,
dannygee22
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by dannygee22 » Wed Apr 05, 2017 7:38 am
One other question, please. Would it be advisable to put a time limit on this offer, or mention that it will be reduced by the amount of payments until/if it is agreed?

Thanks
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Foggy
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by Foggy » Wed Apr 05, 2017 7:49 am
dannygee22 wrote:
One other question, please. Would it be advisable to put a tim limit on this offer, or mention that it will be reduced by the amount of payments until/if it is agreed?

Thanks


Most firms take 2 or 3 months to deal with a variation of this nature, so you would expect a couple more payments to go out, which would sweeten the pot. You could put a limit to reduce the lump sum by the amount of payments taken after a date a couple of months into the future. But, I would be wary of over complicating things due to the question marks hanging over the offer already. There is still a possibility that they are going to want to sort out this £900 - odd they say is owing before they will deal with a variation.
dannygee22
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by dannygee22 » Wed Apr 05, 2017 7:52 am
Ok thanks.

The offer is back at them at £811.94, which I should have an answer back in a week, apparently. I guess all I can do is put the offer in and hope. Thanks again for all the advice.
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