IVA - Advice needed on F&F offer

Hi all,
I hope someone can help with some clarification on my IVA!!
I have approached my IVA company IDS to offer a F&F settlement to my IVA.
I am coming in to my 5th year in November and pay £344 per month, due to my personal circumstances I have been given the chance to go to Australia and stay with family and my mum has kindly offered to give me £2500.00 to pay off my IVA before I leave (i owe £4128).
My IVA company have come back to me and advised that the offer of £2.5K is a good offer but to put this to my creditors they would need to charge a variation fee of £1000.00 + VAT.
Would this fee be charged only if the F&F offer is accepted? Also, is the fee open to negotiation?
Also, if the offer for F&F is not accepted what would happen if the IVA was to fail at this late stage?
Obviously I do not want this to happen I am hoping my IVA company will accept this F&F - Your advice would be very helpful to me!!! :o


  • Charco_2
    Charco_2 Posts: 1,677 Forumite
    dont act too hastily... £1,000 is a lot of money - and for a variation fee i would say they are taking the !!!!!!!!

    Some companies, if they dont feel the offer is going to be accepted do try to charge a fee from the individual for it. But generally i'd have thought that their variation fee (which does cost your IP time and resources) would come out of the amount you are offering as full and final!

    So you'd offer £2,500 and they would put this forward to your creditors but include a "variation fee" of about £400 (negotaible with the creditors) so that £2,100 would be made available to to them.

    The big problem is, creditors are also taking the !!!! and not even allowing variation fees (which do cost the IP time and resources)... there has to be a happier medium!

    I don't like the sound of this company (even if it turns out to be the company i work for - but i doubt it)... I would go back and tell them that instead of offering £2,500 you'll offer £2,000 and pay them the fee of £500 if the variation is accepted!

    But dont get caught in a sticky wicket, don't paint yourself in a corner, you're just negotiating! Say that your mother will provide the £2,500 if the variation is accepted but if it's not then she is not willing to hand over the money since the IVA is likely to fail because your ARE going to Australia...

    NEGOTIATE - and good luck!

    £2,000 also sound like a reasonable offer in the circumstances! The Fee of £500 payable on success gives them an incentive to make it happen too!
    Would you ask the wolves to look after the sheep?
    CCCS funded by banks
  • Kara1
    I have put the F&F offer to my IVA company IDS of £2.5k and have also agreed to pay their variation fee of £1000+VAT upon the basis that the variation is agreed (again I owe approx £4128 and am in my 5th year).
    My IVA company know that I am due to leave the UK at the end of November beg of Dec but they keep making excuses to delay the report for me to sign that needs to go to the creditors to call my F&F it has been 3 weeks since they have had all the info they needed and then they started asking questions about how I am going to fund OZ but I answered this and now they have told me that the manager who needs to sign off my report is on study leave until the 8th November, delaying my meeting further!! This process started in early August! I do not know what to do! And I don't know what my rights are or where I stand, obviously I don't want my IVA to fail but I am scared that they are making excuses to delay the time and then they are going to refuse my offer! HELP anyone with any advice!! :(
  • Charco_2
    Charco_2 Posts: 1,677 Forumite
    It's not up to your IVA company to refuse your offer. They wont earn their extra fee if they don't do this so there's their incentive.

    Seems insane that they dont have someone to cover for someone out on study leave but there you go! (there are IP exams on Tuesday so it's probably true, they just should have agreed cover)
    Would you ask the wolves to look after the sheep?
    CCCS funded by banks
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