is there a percentage for working out f & f offer

my brother wants to lend me money to come out of it early as I still have 13 months left of a 5 year iva, in the fifth year i am to release £17k (which is not possible as my mortgage company would not give me it), and I currently pay £450 per month (£5400 for 12 months total left). Therefore it is about £22k total.

my kids are not in employment, training neither signing on (but have both left school) so it is costing me a lot to keep them as I do not get child benefit (the youngest is 16) and they are costing me a lot to maintain. they are looking for jobs but there are not any? I am on the maximum allowed by the cccs for bills, food but i am starting to struggle and it is effecting my health as we never have enough. I work ft

He wants to lend me £14k would anyone know if they will accept this considering the what the total should be if they let the iva run its full course? is this too low?



  • Charco_2
    Charco_2 Posts: 1,677 Forumite
    I wouldn't be in too much of a hurry really! (no there is not a percentage for working out a F&F, just like at the beginning of the IVA you simply have to put your best foot forward)

    1. If you post your I&E up here, we may be able to see if there are any allowances you are not using to the fullest - You might be able to have an I&E drawn up with your IP that is more affordable for you. This is the first thing I would do.

    2. The reason I would wait before offering a F&F is because according to your paperwork now, you are expected to pay just over £22k towards your IVA... By the time your fourth year evealuation is done however it will be clear to your IP (and creditors) that there is no way you could be expected to release such a huge amount of equity into your IVA with the way the market has gone in the last two or more years.

    The amount of equity you will be expected to release will have to be recalculated. This figure is likely to be reduced significantly from the figure of four years ago.

    After this you will have to look into the various ways in which you can release the equity (through a remortgage or secured loan, OR a lump sum offering from a friend or family member, OR by extending your IVA by a year)

    - A remortgage looks unlikely and the interest rates you would be horrible anyway.
    - A lump sum from your brother is likely to be much less than the £14k he offering you now
    - A year extension would be another £5k or so which is obviously a lot less too

    So first thing is, try to reduce your monthly contribution wth your IP - post the I&E up here and we'll help

    Second thing then is to look into the value of your property now (not four years ago) and see how much equity you'll have to release (Multiply the current value of your home by .85 then take away your outstanding mortgage)
    Would you ask the wolves to look after the sheep?
    CCCS funded by banks
  • missfendiuk
    missfendiuk Posts: 150 Forumite
    Also, am i allowed to emigrate? the actual reason why my brother wants to also give the money is i am in a relationship but the person lives abroad and wants me to come and live there and he will look after me.

    Since the kids are not doing much here they want to go abroad with me...
    but cannot as i am in the 4th year of the iva, can the kids not being in employment or training plus my wanting to emigrate be a valid reason for a f & f offer? or would i have to wait here for another 2 years (if they extend it by a year)?

  • Charco_2
    Charco_2 Posts: 1,677 Forumite
    edited 5 July 2010 at 9:59AM
    Of course that can be the reason. If you have an opportunity to make a life for yourself elsewhere...
    where by the way?

    Also, who is your IP/IVA provider?
    Would you ask the wolves to look after the sheep?
    CCCS funded by banks
  • 5823yil
    5823yil Posts: 111 Forumite

    I have just finished my IVA early, however in my fourth year I had to release equity. But under the equity release, you have to show that you have tried to remortgage and get letter turning you down, you have done everything you can they cannot ask for the additional monies. Also the housing market is lower so you would probably have less equity which will help as well. They will convene a variation meeting and possibily extend this by one year, But if you work out what the release would be against the additional year is a fraction. Wait a few months then ask your IVA company that what could you possibily settle with the creditors. Mine was £3k instead of £20k and whilst it was going through carried on paying month amounts. When all settled in May this year I only paid £900. Result.... try it see what happens...
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