IVA F&F Question

fatboy88

Hi, i have been in an IVA for about 3 years now and pay £226.33 a month. My family has offered to try and pay this off for me as i'm struggling with the monthly payments. On my reviews its working out i should be around £150 amonth but my parents help me with the difference so they thought it may be better to pay if off early and i can pay them back when i can

I'm assuming i owe just under £5500, can anyone suggest what kind of offer i should be making. I was thinking about £3000 but wasnt sure if this seemed too low

thanks
will

Charco_2

Get your reason right!

THE IVA IS UNAFFORDABLE BUT YOUR PARENTS ARE WILLING TO HELP YOU OUT!

If your IP thinks you can afford more then he couldn't recommend the Lump Sum F&F to your creditors! (He can put it forward because you'll tell him to, but he needs to comment on whether he recommends it or not)
If the creditors think you can repay £5,500 why would they accept anything less?

So you need to get your reasons right! The IVA is unaffordable, it has been for some time, if it fails you'll go BR but your parents are willing to offer £3000 instead to have it finish successfully... sounds like a decent offer to me!

(worst can happen is they turn it down and you just try to muddle on through the remaining two years!)

fatboy88

Thanks for the reply

My IP knew i couldnt afford it from the 2nd year but as i could maintain the payment with my parents help ie pay less rent

Basically i didnt really want to go BR but i have spoken to them Payplan and as i have done over half the period there doesnt seem much point in going BR

Charco_2

Well, your IP should have looked at reducing your payments then if he knew you couldn't afford it! This might require a review of your case and possibly a new vote from your creditors but it's unfaor just to expect your parents to pay - even if they are willing to help you!

Your IP would have had the power to reduce your payments by over £30 anyway without having to hold a meeting!

fatboy88

Charco wrote: »

Well, your IP should have looked at reducing your payments then if he knew you couldn't afford it! This might require a review of your case and possibly a new vote from your creditors but it's unfaor just to expect your parents to pay - even if they are willing to help you!

Your IP would have had the power to reduce your payments by over £30 anyway without having to hold a meeting!

thanks for the help

I didnt really want to extend the period which is why the F&F was suggested. They wasnt really bothered as long as the monthly payment was made. Been trying to contact them for a current figure i owe but they just dont get back to me

Charco_2

Reducing your payments wouldn't necessarily have resulted in an extended payment period. Regardless, you're now looking to offer a F&F lump sum.

The amount you owe and the amount you still have to pay to your IVA are two different sums.

To your IVA, you're probably about right in the £5k region however if you failed your IVA you would be back to owing everything again. (All the debts you had before the IVA, plus interest, plus IP fees, minus what you have paid so far).

Proposing a F&F wont fail your IVA so you've nothing to lose by chancing your arm. If you want to offer £3k then insist that it is offered - it is YOUR IVA so the IP cannot stop you. If it is rejected then you can still maintain the payments of £226.33 each month and you've lost nothing.

fatboy88

thanks

there is one other thing if the amount is rejected can i increase the offer

Charco_2

It's your proposal so yes

But if you offer an amount as "the absolute most you can scramble together, here take it or leave it" and they leave it and then you go back to say "only kidding, THIS is the absolute most i can scramble together..."

That's sort of why you need the reason too, it's the clincher!

fatboy88

thanks for your help mate, really helped me a lot

fatboy88

Just thought i'd update, i still owe £3800+ but offered £2500 but one creditor came back and wanted another £1000. Finally settled on £2900 total as just wanted rid of this.

Is there anything i should be doing when this goes through regarding making sure it is all settled on the credit side

thanks

Max_1066

Well done for getting this settled. You will need to check your credit file to ensure the accounts are marked as 'satisfied' rather than having an amount showing. Creditors are fairly slow at updating this unless you chase them.