F&F offered

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Cole24
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by Cole24 » Wed Jul 12, 2017 7:41 pm
Hi, looking for some advice.

I'm at the end of my 4th year of my IVA with DFD, I've never missed any of my £501 a month payments and it's been a struggle. I split with my wife 18 months ago but because of the payments I cannot afford to move out, but this is now putting a stress on me, my ex and our 7 year old daughter to the point that I have to move out. I spoke with my parents who have offered me £6000 to offer a full and final settlement which I have done and provided all the information and documents they need. There is equity in the house but my wife won't agree on remortgage as she will be staying in it while I move out and the repayments would be too high. I have stressed to them that if they don't except the offer then I'll have to look at reducing my monthly contribution to about 100 so I can move out.

Do you think this type of offer would be accepted? I'm now stressing again as I can't live here anymore especially for the little one as it's very hard on her, and if they don't accept or let me reduce payments I'm stuck living this hell.
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Foggy
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by Foggy » Wed Jul 12, 2017 8:29 pm
You are looking at an extension of 12 months instead of equity release --- so another 2 years at £500 - odd a month --- so the creditors are expecting to see at least £12k. I woudl have thought an offer in the region of £10k would be more in the right ball park -- but -- never say never -- I have seen very low offers accepted ( as well as high ones refused!).

On the proposed reduction front -- you cannot name the figure --- you can ask for a new I&E for them to calculate the new disposable income --- if this is too low they might fail the IVA -- on the other hand you coud ask creditors to accept payments to date and call it quits. But ...you have to tread carefully, as a fail now could put everything you have done at risk, as well as the house itself, should a creditor call for bankruptcy if the IVA is allowed to fail -- which would not be in the ex's interests, so she should be minded to co-operate to protect the house.
Cole24
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by Cole24 » Fri Jul 14, 2017 8:55 am
That is foggy, do you think they would take circumstance I to account? If there's a possibility of the iva failing or payments being reduced would the offer be better than what pots totally could be less in the long run? DFD said the equity might not be an issue as I'm moving out?
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Foggy
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by Foggy » Fri Jul 14, 2017 9:18 am
Cole24 wrote:
That is foggy, do you think they would take circumstance I to account? If there's a possibility of the iva failing or payments being reduced would the offer be better than what pots totally could be less in the long run? DFD said the equity might not be an issue as I'm moving out?



Yes, they will take circumstances into account -- the more dire those are the lower offer they will entertain.

I am not sure what you mean by the equity not being an issue due to you moving out ... residence has no real bearing. It is ownership that matters .... if you remain on the deeds you have access to equity, which the creditors will want to see addressed.
Cole24
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by Cole24 » Fri Jul 14, 2017 10:45 am
Thanks again for responding Foggy, I sent all the documents on Tuesday so just waiting now. I'm keeping everything crossed.
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Foggy
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by Foggy » Fri Jul 14, 2017 10:53 am
Cole24 wrote:
Thanks again for responding Foggy, I sent all the documents on Tuesday so just waiting now. I'm keeping everything crossed.



Best of luck.
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