Taking loan to offer F&F. Will it be accepted?

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ryan303
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by ryan303 » Tue May 16, 2017 10:03 am
I have roughly 8500 left in repayments on my IVA. My partner has just taken out a loan in an offer to clear it. I will be offering the full amount of based on my repayments. How likely is it they will accept the offer or will it be more? Does the fact that it's a loan affect the likelyhood of it being accepted too?
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Foggy
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by Foggy » Tue May 16, 2017 10:28 am
A full and final offer ( don't use the term "settlement" -- that is a different and far more expensive beast) is based on the months remaining multiplied by the monthly payment ( you will need to add 12 months if you are a home owner, or prove there will be no equity to trigger the release clauses). This figure can be rounded down a little to reflect the administration costs both creditors and IP will be saving (assuming a good term remains). These offers are often accepted, but one cannot guess the outcome -- I have seen low offers accepted as well as high ones (rarely) refused.

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 !!
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ryan303
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by ryan303 » Tue May 16, 2017 10:43 am
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?

Cheers
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Foggy
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by Foggy » Tue May 16, 2017 11:06 am
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?

Cheers



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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Lisa Thomas
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by Lisa Thomas » Wed May 17, 2017 9:21 am
Hi you might find this quick video I made on the subject useful:

https://www.youtube.com/edit?o=U&video_id=h4dozq9aGak

Best of luck with your offer.
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