Windfall agreement in my iva

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Pigger479
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by Pigger479 » Wed Jul 05, 2017 1:56 pm
Hi. I'm one month into my iva and I've found out that my parents are splitting up. Once the house Is sold my dad would like to give me and my partner money to help us get a mortgage. Would I be better telling my dad to keep money for 5 years then let me have it or give it to me now full and final settlement my IVA and use my iva payment I would of been making to save for a house?
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Michael Peoples
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by Michael Peoples » Wed Jul 05, 2017 2:01 pm
I think using some of the money as a full and final settlement is a good idea. Your father offers it and the IVA then gets closed down. You can then start to rebuild your credit file and the further you are from the IVA the easier it will be to get a mortgage.
Pigger479
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by Pigger479 » Wed Jul 05, 2017 2:03 pm
As I'm very early into my iva will I not just have to pay back the full amount of debt I owe?
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Michael Peoples
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by Michael Peoples » Wed Jul 05, 2017 2:18 pm
Absolutely not. This is your father's money and he is offering a full and final settlement to your creditors. In the unlikely event that they turn it down he can hold the money while you pay the remainder of the IVA monthly payments. He can then give you the money when your IVA is over and you can use the funds for a deposit to buy a property.
Pigger479
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by Pigger479 » Wed Jul 05, 2017 2:34 pm
My payments £247 a month . What sort of full and final offer would be accepted do you think ?
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Foggy
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by Foggy » Wed Jul 05, 2017 2:56 pm
At your current level ( assuming a 5 year IVA) you are looking at paying over around £14326 (assuming two payments already made). Your offer should reflect this, take into account a few more payments made whilst getting the F&F arranged and also the savings both creditors and IP will be makimng in admin over the next few years (as well as the "Bird in the hand" factor). I would go in with an offer of £10,000 initially.
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Michael Peoples
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by Michael Peoples » Wed Jul 05, 2017 3:10 pm
I agree with Foggy that £10k seems reasonable. If rejected your father can always increase it a little at the time.
Pigger479
Posts: 38
by Pigger479 » Wed Jul 05, 2017 3:53 pm
It may take time for house to sell etc aswell so It could 6-12 months time this happens. Again thank you all !
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Michael Peoples
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by Michael Peoples » Wed Jul 05, 2017 3:59 pm
If that is the case then reduce the offer accordingly. Look at what is left to pay and knock a bit off for early settlement when the time is right.
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