Need advise on F&F settlement pls!

rubber_ducky_3

:think: Hi all,

Really struggling here and could do with some advise. My partner has an IVA which began October 2006, he has 18 months till it finshes he currently pays £595 per month towards this.

Since his IVA (which begun before we met) we are now expecting a baby - due in September - and he has now moved in with me. I will be going on maternity leave in August then going back to work part time in April 2011 , we are struggling now let alone next year!

We both work for local government and we are being faced with our jobs being outsourced up North or redundancies for one of us or worse still prehaps both, so our jobs are not very secure.

To top all my partner also has been diagnosed with Polyosic Kidney Disease (which his dad has and had to have his kidney removed and is now on dialysis every second day due to other complications) he also suffers from high blood pressure and could be of sick at the drop of a hat, again not making his job very secure!!!

My question is, he is with Blair Endersly and after about a month of asking they have finally issued a letter stating he has 18 payments to go (which total £10,710) but they have also quoted a figure of £16,222. When he phoned them they advised this was an estimate of what creditors would accept? My partners dad, having seen the stress we are both under at the mo has offered up to £10k to pay this debt off, but due to the is letter we are now unclear of what to offer or how to even go about it!

I have looked through the other posts and everyone that has done F&F's seemed to offer less why are they stating more? Is this right.... any advise would be more than welcome we're pulling our hair out now and are trying to get ourselves out of this mess as we cant cope anymore!

If anyone has settled did you offer less and how much less?

Thanks in advance.

samhuzz

Personally I would ring the companies he owes money to myself and ask for settlement figures. I think Blair Endersley are one of those companies that charge you for them organising your debt repayments, although if I'm wrong someone feel free to correct me. They might have added a bit onto the settlement figure for themselves, as they will be losing a customer.

notmyrealusername

rubber_ducky wrote: »

If anyone has settled did you offer less and how much less?

I settled two years early, the remainder owed was £9500 and I offered £7500 from a relative. That took my original dividend from 32p in the £ down to 27p in the £.

I didn't even have a 'reason' for settling early, I would think your partner is in a much stronger position what with the impending arrival of your baby, job uncertainty and potential ill health.

Charco_2

Sounds like the £16k figure could be the actual outstnading amount of the debts? Yes/No? But you have agreed payments of £10k or so over the next 18 months...

I don't know, I'd be sure it's not what you'd be expected to pay as a full and final however.

For "notmyrealusername" who didn't have a "reason" i'd guess that the saving of £2k was partly made up for by the two years of IPs fees he wouldn't have to pay (probably about £850) and the other £1,200 was because a bird in the hand is worth two in the bush!

The first thing to consider (even before your F&F) is that you CAN speak to your IP about lowering the monthly repayments to a figure you can afford... (This is your safety blanket). Your IP has the power to accept reduced payments of 15% but anything more than this he can call a creditor's meeting. SO IF YOUR F&F OFFER IS REJECTED then you will have the option to renegotiate your payments anyway.

However, if you currently have almost £11k to pay over 18months and your jobs aren't secure and you're expecting a baby and so on then a F&F offer of much lees than this would be seriously considered by your creditors... Your creditors dont have to know that daddy was willing to stump up £10k, when £8k might be enough!

It would go against you the fact that you have government jobs as i'd imagine this would mean you'd get handsome redundancy packages... so maybe don't mention it! Also consider your mortgage/home (if you have one), how much equity is going to be available?

I would imagine £10k F&F would come close to meeting your original dividend offfer agreed with your creditors so shouldn't be a problem.

rubber_ducky_3

Thanks for your replies.

Firstly, the £16k quoted in the letter says "this is the figure which will discharge your debts in full plus statutory interest"
However, the future payments due quoted in the same letter is £10,710 which would add up to a total repayment figure of £30,180. The figure which is also quoted in the same letter, as the origanal proposed contributions is £30,180 which I presume is the original amount agreed for the IVA total? Sorry not too good at this stuff!

Ok, maybe we wont mention the Government jobs although we wouldnt really get any nice big fat pay offs - now that would be nice

I rent my flat so no equity at all - all we have is this lovely offer of up to £10k to help us out and start afresh before the little one comes along!

What do you think we should offer? We really want to get rid of this and are looking at offering the full £10k.

Charco_2

Ok so the £10k is the rest of the amount you agreed to pay in your IVA and the £16k is the amount you would have to pay if were suddenly able to pay off all your debts due to a lottery win (as in your outstandig debts plus 8% statutory interest).

The figure you're interested in now is the £10,710.
This is the amount you will pay over the next 18 months of your IVA (£595 x 18). If it were me, I'd explain the big change of circumstances on the way (bundle of joy) and offer between £7k and £8k that your daddy s willing to stump up to help you out... your IP has to put forward any reasonable offer you suggest so just insist. And get it done soon

Good luck!

emma-uk

I successfully completed a F&F after the sdame change in circumstances. Here's my thread:

http://forums.moneysavingexpert.com/showthread.html?t=2137499

rubber_ducky_3

Thanks Emma its good to read that there is light at the end of the tunnel! We're really stressing as its always a gamble if the F&F will be accepted, but you've given me another reason for it after reading your post, we too live in a rented Housing Association property and theres not enough room here for a new one, but as we both work and heres its all points based the council will not contemplate re-housing us so we'll prob have to move in the not too distance future and rent privately!

Thanks alot - its good to read that people can move on!