What would I need to supply when I do the full and final settlement offer?

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Sally3003
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by Sally3003 » Wed Jan 31, 2018 11:32 am
I started my Iva in November 2016 and currently pay 150 per month. No house but iva term is 6 years plus 6 months for increased bonus which I declared. Total left to pay is 9600. I am wanting to offer a full and final settlement of 4500 which will be gifted to us from my husband's parents. The reason is that I have just had a baby and will be on maternity pay which means I will only be able to pay 50 to my iva then from November I will not be able to pay anything as I'm not going back to work as nursery costs will be too much to warrant me working.

Do u think this is a reasonable offer?
What would I need to supply when I do the full and final settlement offer?
I am with credit fix.
Any advice would be greatly appreciated
Thank you.
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Foggy
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by Foggy » Wed Jan 31, 2018 11:59 am
Why are you on a 6 year IVA to start with ? and was this bonus you declared in the region of £1800 ? £4500 might be a little light but also depends on the initial write off (how much they are losing anyway, even if you went the full term).
Sally3003
Posts: 6
by Sally3003 » Wed Jan 31, 2018 12:05 pm
Thanks for your reply. Not sure why it's 6 years that's just what they said it needed to be. Original debt was around 21,000. Bonuses were over a 6 month period of commison and overtime from my husband. I'm just worried that my iva will fail if it's not accepted as is won't be able to afford to make any payments soon.

Is it unlikely to be accepted. I have a lot of different creditors. Around 20. Would that make a difference?
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Foggy
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by Foggy » Wed Jan 31, 2018 12:13 pm
Sally3003 wrote:
Thanks for your reply. Not sure why it's 6 years that's just what they said it needed to be. Original debt was around 21,000. Bonuses were over a 6 month period of commison and overtime from my husband. I'm just worried that my iva will fail if it's not accepted as is won't be able to afford to make any payments soon.

Is it unlikely to be accepted. I have a lot of different creditors. Around 20. Would that make a difference?


Is it only you in the IVA or are the debts both you and your husband's and you are both in IVA's ? Sorry for all the questions, but I am trying to figure out CF's reasoning and if the 6 month extension is even needed or allowed.

A wide spread of creditors makes for a better spread votes as long as the debt is evenly spread.
Sally3003
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by Sally3003 » Wed Jan 31, 2018 12:22 pm
It is mine and my hundbands iva as it's both of our debts. Debts are mostly equal except 3 bigger ones.
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Foggy
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by Foggy » Wed Jan 31, 2018 12:34 pm
Ah, right ... so the husband's bonus would be dragged into it then !

Of the creditors who vote, you need a 75% (by loan value) yes vote. So, if any creditor has more than 25% of the debt value and they vote, they could swing it whichever way they wish.

If I didn't know the amount you were intending to offer, I would have suggested a figure nearer £6 - 7 k. But I have seen low offers accepted as a lot depends on the reasons for the offer. If the IVA were to fail due to your inability to continue payments the creditors stand very little chance of getting anything more back anyway. so you are on a strong footing.
Sally3003
Posts: 6
by Sally3003 » Wed Jan 31, 2018 1:04 pm
Thank u for your help. Do u know what I would need to supply when I make the offer? Would it just be a covering letter or would they need bank statements etc. Also they said creditors have 28 days to reply. But i have seen that it can take a couple if months to hear back. Which timescale is right?

Thanks again for your help.
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Foggy
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by Foggy » Wed Jan 31, 2018 1:09 pm
Sally3003 wrote:
Thank u for your help. Do u know what I would need to supply when I make the offer? Would it just be a covering letter or would they need bank statements etc. Also they said creditors have 28 days to reply. But i have seen that it can take a couple if months to hear back. Which timescale is right?

Thanks again for your help.


You need to make the offer in writing, making it clear that it is a third party gift for the purposes of the F&F only and, if the offer is rejected, the money will be retained by the donor and will not be available to the creditors. They will probably need a bank statement from the donor showing the funds are actually there. Under the common terms and conditions used they have 21 days, from when they have all the paperwork from you, to draft the variation and present it to creditors. The creditors then have 28 days to respond. Sometimes they will respond earlier and it can be worked out which way it will go.
Sally3003
Posts: 6
by Sally3003 » Wed Jan 31, 2018 1:15 pm
I see thank u. My in laws will have the money available at end of march. When do u think i should make the offer? Also in your experience would they be more likely to accept the offer based on my reasons. Ie it's not being offered just to end the iva early?

Thank u again.
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Foggy
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by Foggy » Wed Jan 31, 2018 2:22 pm
Sally3003 wrote:
I see thank u. My in laws will have the money available at end of march. When do u think i should make the offer? Also in your experience would they be more likely to accept the offer based on my reasons. Ie it's not being offered just to end the iva early?

Thank u again.


Creditors are not ogres and will look at the offer sympathetically (but, at the end of the day they also have a duty to their shareholders). Hopefully your IP will make a good case, but, yes, having a reason other than simply wanting out is all to the good. You can start the ball rolling by having a chat with your IP -- depending on the source of the money and the certainty of its availability your IP might get started to time the meeting to the availability of the funds.
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