Full and Final Offer

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Portia59
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by Portia59 » Sat Sep 02, 2017 11:36 am
Hi, new on here so first post, I will try to make a long story short.

I've been in an IVA for 4 years. 60 mths + 12 mths. I have 2 4x 198 = £4950 to pay to complete.

The IVA is in my name only. My mother passed away in December 2016 so I have received her half of the house. My husband passed away 25th July this year, this has meant that there is £500 less coming a month. So I will struggle to keep up the agreed monthly payments of £198.
My late husband had taken out a funeral plan to the total of £ 13,000. I have informed Apeture of this and they have confirmed that I can retain 50% of this, after disbursements. He left no will.
I have also been told I am to receive £2500 in Bereavement services, plus £100 a month for 18mts from the DWP.
My part of the Insurance plan will be in the region of £4500. I was considering making them a Full and Final offer of about £2500, as I will struggle greatly to continue
monthly payments.
Do you think this stands any chances of being accepted or will they want all the money available. I have informed Apeture of all of this.

Would be very grateful for any help or opinions
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Foggy
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by Foggy » Sat Sep 02, 2017 12:25 pm
A lot will depend upon how Aperture will treat the half a house inheritance as, technically, this should be made available to your creditors, at least in part. It looks like you will be getting, in lump sums, around £7,000 and Aperture know this, so might be looking for a higher offer for a F&F than £2,500.
Portia59
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by Portia59 » Sat Sep 02, 2017 1:04 pm
Foggy wrote:
A lot will depend upon how Aperture will treat the half a house inheritance as, technically, this should be made available to your creditors, at least in part. It looks like you will be getting, in lump sums, around £7,000 and Aperture know this, so might be looking for a higher offer for a F&F than £2,500.


I was thinking that. The amount owed over the next two years would be £4950 that I would need to pay to complete. I'm not sure at all how the equity affects this and what would be required. Must admit I thought that the 60 + 12 months would cover me on that as it is highly unlikely I could remortgage.
Also can the Bereavement amount just go straight in to the IVA as windfall,.
Sorry I'm very confused with all of this and what to do for the best.

Thank you so much for your quick reply
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Foggy
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by Foggy » Sat Sep 02, 2017 1:29 pm
Are you living in your late mothers house ? If so , it could be argued that it is, in essence, like any other jointly owned home and a 12 month equity release extension could cover it. If it is a "second" home --- or what could be now looked on as an investment, it could be treated as a windfall. although I can't see how they could force a release by sale on the other owner (s). Again, this will depend on how Aperture want to proceed --- once we know what they have in mind we can comment further.

When the Industry Experts return to the forum next week they might have a better view of things.
Portia59
Posts: 7
by Portia59 » Sat Sep 02, 2017 1:39 pm
Foggy wrote:
Are you living in your late mothers house ? If so , it could be argued that it is, in essence, like any other jointly owned home and a 12 month equity release extension could cover it. If it is a "second" home --- or what could be now looked on as an investment, it could be treated as a windfall. although I can't see how they could force a release by sale on the other owner (s). Again, this will depend on how Aperture want to proceed --- once we know what they have in mind we can comment further.

When the Industry Experts return to the forum next week they might have a better view of things.


I shared the house with mum and it is my sole property now

To be honest I just want it gone from round my neck. Going on is hard enough without this.

Thanks again.
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Foggy
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by Foggy » Sat Sep 02, 2017 2:06 pm
If it is any comfort, Aperture, when they were Grant Thronton ( same IP) where incredibly helpful and supportive when my life took a turn for the worst halfway through my IVA and, basically, saved my skin!
Portia59
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by Portia59 » Sat Sep 02, 2017 2:25 pm
Foggy wrote:
If it is any comfort, Aperture, when they were Grant Thronton ( same IP) where incredibly helpful and supportive when my life took a turn for the worst halfway through my IVA and, basically, saved my skin!


That's really heartening to hear. Thanks. I just have visions of them wanting every pound of flesh they can get. It's a scary place to be.
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kallis3
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by kallis3 » Sat Sep 02, 2017 3:29 pm
I hope you get it sorted and I am sure one of our experts will help next week.
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Lisa Thomas
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by Lisa Thomas » Mon Sep 04, 2017 8:40 am
Hi

I am sorry to hear of your losses and know what a difficult time you must be going through right now.

When you refer to the £13k funeral plan was this actually a life insurance payout as I cannot see how the IP can take those funds if it was a funeral plan - the funds would have to be spent on the funeral?

Technically the half of the house you have inherited should be paid over into the IVA.

You could put an offer to your creditors to pay over your other 50% of the life insurance of £6.5k in final settlement in lieu of future contributions and the half of the house to finish the IVA.

This means the IVA will receive the full £13k but you will get to keep the house.
Portia59
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by Portia59 » Tue Sep 05, 2017 2:37 pm
Lisa Thomas wrote:
Hi

I am sorry to hear of your losses and know what a difficult time you must be going through right now.

When you refer to the £13k funeral plan was this actually a life insurance payout as I cannot see how the IP can take those funds if it was a funeral plan - the funds would have to be spent on the funeral?

Technically the half of the house you have inherited should be paid over into the IVA.

You could put an offer to your creditors to pay over your other 50% of the life insurance of £6.5k in final settlement in lieu of future contributions and the half of the house to finish the IVA.

This means the IVA will receive the full £13k but you will get to keep the house.


Thank you so much for your reply.

I must admit I'm finding it very hard to get my head round this. I would like the IVA to be settled, no doubt about that. I was hoping that I could negotiate a bit with them. The house is basically falling apart. I have virtually no chance of getting a loan or a remortgage for any improvements. I've got a hole in the garage roof and have been told the boiler is getting beyond repair. Do you think that it's worth trying to explain this to them. Also will they take all of the Bereavement Support or only half of it ?. I know this is a mess of my own making. I let my deceased husband walk all over me and get me into this, unfortunately. Want to pay as much as I can just would like these things to be considered.
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Lisa Thomas
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by Lisa Thomas » Wed Sep 06, 2017 1:45 pm
In simple terms the whole of your share of the inheritance has to be paid into the IVA...

...Unless you can convince creditors to accept a variation by way of a settlement.

You have referred to the funeral plan - I have asked you if this is what you really meant as I can't see how the IP would be able to state that funeral proceeds would be payable into the IVA. This is why I have assumed you mean it is a life insurance payout?

As regards the income your I&E will need to be reassessed in light of the changes/increase to your income and if no variation is put forward and/or agreed you may find that your contributions rise in line with the additional net income, although bear in mind that your expenditure may also increase due to the change in your circumstances.

You can of course put your explanation and circumstances in the offer letter and ask that IP to ensure it is included in the offer pack so that creditors can (hopefully) sympathise with your situation and, perhaps vote in favour of any offer you make.

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