What are my options if full& final offer isn't accepted

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by andrews » Wed Mar 21, 2018 3:09 pm
I started an IVA with Payplan on 2 October 2013. Payplan are saying I am in breach of the IVA as I have not declared income to the tune of £5845.63. I have been completing the yearly income and expenditure calls and sending in 3 payslips. This came to light this year when they insisted I sent in P60 for each year.

The irony of this is had Payplan completed the income and expenditure diligently it should have shown that my expenditure had increased and my income remained pretty much static.

I have agreed to pay £4000,00 as a full and final settlement. I have paid £5,924.90 so far. In total this will be 22 pence in the pound of the original debt.

The property that I own jointly with my partner is valued at £150,000.00. and the mortgage is £127,994.31. As such there is not enough equity to consider bankruptcy.

In your view what do you think my chances are of the offer being accepted?
If the offer is not accepted what are the other options considering bankruptcy might not be an option?
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by Foggy » Wed Mar 21, 2018 4:14 pm
Has the £4k offer been made after the revelation of the "arrears" ? I doubt it would be accepted as long as there are significant amounts supposedly outstanding. First you need to get PP to either back down or to substantiate their claims with hard facts and figures. If you have been rportting income correctly ( insluding any overtime and bonus payments) there should be none of these "arrears". Once that has been established you can give thought to a realistic F&F.

I do not understand your comments about having little equity in the property to consider bankruptcy --- that is normally a god thing as it means the OR would have less interest in the property and less risk of you losing it. However, any risk of losing the property is, I assume, to be avoided. Low equity makes it less likely that the creditors would press for BR, but it would not necessarily stop you from declaring yourself BR. You need to take independant professional advice.

Other options will depend on the outcome of talks with PP concerning the present difficulties and then the whole picture, to which we are not privvy.
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Lisa Thomas
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by Lisa Thomas » Thu Mar 22, 2018 9:18 am
I think perhaps you mean there is too much equity at stake for you to consider Bankruptcy?

You may need a payment break to catch up with the arrears (if they are correct). This will extend your IVA but worth it as you get to keep your property.

Where is the £4k coming from to fund the offer you have made?

It sounds to be that you were only giving them 3 months worth of income details and perhaps the overtime/extras were included in the other 9 months that they did not look at originally.
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