iva full and final settlement

carried36

i have just offered a full and final settlement to my ip they have rejected it because they said that over the term of the iva i will only be paying back 15p in the pound instead of 19p the iva has been running for 18 months i have offered to put in an insurance policy that is maturing they are now saying i have to put this in anyway as a windfall and that this will not make any difference to the term on the iva, i am gutted as the amount i was offering to put in was only 2200 less than what i would have paid over the full five years less the ip fees can anyone help with this i think that my ip is probably keeping me on the iva to make more money out of me i am not sure if i can insist that they contact my creditors against their advice????:mad:

Charco_2

Is your IVA at risk of failing?

I think the IP has to put forward any reasonable offer and as I'm always saying on here, a reasonable offer has to include a good story!

If your circumstances are changing then it's not unreasonable to put forward a F&F offer, but if you just "want out" then your offer is going to be looked at in that light and most likely rejected... obviously the finances come into it too!

- If your wife suddenly ends up pregnant and you'll need money to do up a nursery in the next 9 months and then you'll have an extra mouth to feed and bum to clothe then a reduced offer would be viewed reasonably.
- If you lose your job again and your husband is injured on service in Afghanistan and won't be working anymore a reduced offer is likely to be looked on sympathetically.
- If you simply want out and your friend is willing to lend you a lump sum then you're probably going to have to stump up the full amount of your remaining agreed contributions...

The reason is obviously more about affordability than sympathy but the harder your story the more likely it is that your creditors will accept that a reduced offer is close to your best offer... the alternative almost needs to be that your IVA would fail otherwise and bankruptcy fees would eat up any money the creditors were entitled to.

So Carried, the alternative here seems to be that you'll carry on paying your IVA and bring in any maturing assets anyway... I don't know if your IP refused to bring your offer forward or if your creditors rejected it or what. You can insist that the offer is put forward - you can go to court over it if needs be but it's not a good idea to fall out with your IP, he's not your enemy anyway!

I think the 15p/19p story is a red herring - makes no sense!
However, the IP is not likely to refuse to put forward your offer "because he wants more money", since he'll be earning a commission based on the amounts recovered (so he's paid anyway!)

If you insist however that the offer goes to a creditor's meeting your IP can:
1. Say ok, but then put it forward and say in his recommendations that he doesn't think it's a good offer (this is not spiteful, he has to put a note on to this effect that he thiks it's a good/bad/reasonable/risible offer)
2. The IP can insist that you pay an upfront fee for the variation. If the IP has to vary the proposal he is putting in more chargable hours, generally this would be paid from the pot and not a problem but if your IP feels that the offer is unreasonable and wont be accepted then he wouldn't be paid the variation fee and so would be out of pocket for the hours he spent varying the proposal.

Debt_free_thanks_to_CCCS

I have just found this site, and read through ten pages about full and final settlements, and I thought my own experience might be helpful to others.
In 2003, my daughter was severely disabled in a botched operation. She lost her business, with some debts, and almost lost her home.She is a divorced mother of four children. We immediately started proceedings against the surgeon concerned (he has butchered another ten women and has been suspended by the General Medical Council since 2005).
She was very ill for many months , in and out of hospital and with no income from her business was unable to pay her mortgage.
I sold my own house and went into rented accommodation, so that she could pay off all her debtors and keep her house.
Her solicitor was confident that she would receive substantial damages, but none of us realised how long it would take.
In order to support the family, I started borrowing on credit cards and loans, believing that she would soon be in a position to pay me back. She could not obtain credit herself because her ex-husband had defaulted on their mortgage for several months during their bitter divorce case.
In the end, I was just borrowing from one creditor to meet the monthly repayments on other loans.
By last year, settlement of her case seemed as remote as ever (the Medical Defence Union, the surgeon's insurers, are notorious for dragging out cases, presumably in the hope that very sick people will give up, or die). I could no longer meet the monthly repayments out of my pension income.
I contacted CCCS who advised me firstly to set up a bank account with a bank to whom I owed no money. Then I had to send them copies of my P60 showing my pensions and three months bank statements. I also had to send letters from our solicitor confirming that she had been injured and was expecting damages, and also copies of my daughter's bank statemet and a list of outgoings for both of us. I was quite happy to do this.
On the basis of that information, they set up a Debt Management Plan for me. After living expenses of just over £500 per month, I had £686 left to pay all creditors. This was apportioned on the basis of the outstanding balance of each debt and I sent the CCCS standard letter to each creditor, detailing all the debts and the proposed payments. This was so each creditor could see that they were being treated equally.
They were also given all the details of my daughter's case, the letters from her solicitor, and both our income/expenditure accounts.

I paid the reduced monthly payments for nine months through a standing order to CCCS. MBNA and Barclays and Egg reduced the interest to nil and did not charge any default fees. Only the bank I had been with for ten years, HSBC, refused and went on charging interest.
Finally, my daughter's case was settled, but she received much less than she had anticipated and could not pay me in full for the amounts I had borrowed for her in my name.
The CCCS told me how to make an offer in full and final settlement.
I sent their standard letter to each creditor, and within two weeks MBNA and Barclays had accepted 30%, HSBC accepted 60% on my Credit card and wrote off £1500 on a loan. Only Egg were terrible - firstly they said they could not accept anything less than 75%, so I said I would see if my daughter could manage any more - when I rang the next day to offer this amount they said they would not settle for less than 80%, I am nearly 70 and the last seven years have been a nightmare - worrying about my daughter's continued ill-health and struggling to keep her family afloat and pay the debts. I just could not fight anymore and she was getting very stressed too, so I agreed to pay 80%.
All my debts have now been paid (I had borrowed nothing for myself) and I have checked my report with Experian. At the moment, most of my debts have been marked as 'Satisfied',but two still show default, although I have letters from the creditors accepting the offer in full and final settlement. I have not been contacted by any of the creditors or debt agencies since I made the payment. I am not concerned about my credit rating, as I never intend to be in debt again.

I have never reneged on a debt in my life - I can live happily within my pension income. I did not injure my daughter and I did not expect settlement to take seven years. I know some people have been highly critical of anyone who gets into debt, but I would like them to tell me what I could have done differently. Bad things happen to good people. I have lost my own home, car, and a 45-year old perfect credit rating. I have enormous sympathy to anyone who gets into debt through no fault of their own. Obviously no-one condones idiotic spending on luxury goods. We paid off every creditor of my daughter's business, but I really have little guilt about banks and credit card companies, who are still massively over-charging on interest rates, when the Bank of England rate is at an all-time low