Full and Final Advice - Urgent

Radiantsoul

Rossa wrote: »

And if you want to be cynical about this we were told that the finance companies sell the debts on to the firms of accountants/auditors such as KPMG. They have a tick box form and if you don't tick all the boxes they will decline the offer. So you aren't even dealing with the company you thought you had a relationship with.

Accountancy firms never buy debts. They simply don't have the balance sheets.
What happens is that the proxy forms that creditors receive are often handed to auditors who pass it to their insolvency divisions. They review the forms and vote on behalf of their audit clients. This is often the case in bankruptcy in terms of voting which IP takes the case on(and also in setting the trustee fees).

However with IVA most finance companies have their own divisions that review IVAs. A lot of IVA are declined because finance companies are looking for a Xp in £ and accept them on that basis. In practice so few IVA suceed and the process can be so drawn out with various ammendments bankrupctcy is often preferred.

Doglover

Hi, thanks for the info. All of a sudden I have become the person for people to ask questions of and a friend is popping over tomorrow with some. So, can i ask you to give me a bit more info following on the advice given the other day about the full and final IVA as quoted below:

For those yet to enter an IVA, but can raise up to 30% of their debts, plus around £5-6,000 for IP fees, for example through raising equity on their house, then a "Full and Final IVA" can be negociated from the very beginning. This type of 'F&F IVA' often means that your insolvency period only lasts as little as 12 weeks.

If this type of IVA is done, do you know if the property is still protected (although it's in neg equ) but there are children involved. Would this type of IVA look at secured debt as well as unsecured? My friend is swaying towards br but it may have a devestating affect on his job.
Any further help would be greatly appreciate.

Radiantsoul

Doglover wrote: »

Hi, thanks for the info. All of a sudden I have become the person for people to ask questions of and a friend is popping over tomorrow with some. So, can i ask you to give me a bit more info following on the advice given the other day about the full and final IVA as quoted below:

For those yet to enter an IVA, but can raise up to 30% of their debts, plus around £5-6,000 for IP fees, for example through raising equity on their house, then a "Full and Final IVA" can be negociated from the very beginning. This type of 'F&F IVA' often means that your insolvency period only lasts as little as 12 weeks.

If this type of IVA is done, do you know if the property is still protected (although it's in neg equ) but there are children involved. Would this type of IVA look at secured debt as well as unsecured? My friend is swaying towards br but it may have a devestating affect on his job.
Any further help would be greatly appreciate.

You would keep the property out of the IVA and so it would still be safe. However the secured creditors would not be in the IVA. But if there is no equity then bankruptcy would not be so bad.

If your friend has the kind of job that would be devasted by bankruptcy then he is likely to have a reasonable income and creditors are likely to want more. Creditors will basically want more for from a F&F IVA than a normal one and they will want more from an IVA than bankruptcy.

Doglover

Radiantsoul wrote: »

You would keep the property out of the IVA and so it would still be safe. However the secured creditors would not be in the IVA. But if there is no equity then bankruptcy would not be so bad.

If your friend has the kind of job that would be devasted by bankruptcy then he is likely to have a reasonable income and creditors are likely to want more. Creditors will basically want more for from a F&F IVA than a normal one and they will want more from an IVA than bankruptcy.

Thank you. He earns in excess of £30k per year. Interstong to know that only unsecured creditors are able to be included in a IVA - it seems as though the first thing to do is check the total amount of secured and un-secured debt and then review things.