F&f settlement for 6th yr????

shelene

Hi all, I am now 4 1/2 yrs through my IVA and just going though a variation as no equity to release from my property - meaning a further 12 mth extention to my IVA.

I am currently paying £316 per mth until another annual review in March 2012. I'm thinking of tryin to make a full and final settlement offer alongside my next annual review- I'm unsure of how much I would av to try to get my hands on??

I was thinking if it was £316 mth again whether they might accept about £2k ? Any thoughts?? If I complete the whole 6 yr I will be paying 61p in th pound I think.

What have ur experiences been of F&F offers?? Amount offered to percentage they are expecting?

Thx in advance

FoggyBrain_2

Hi. Have a read of your proposal. If there is no equity to release there should be no extension. The extension generally applies when there is equity to release, but you are unable to do so.

shelene

The creditors were defo expecting a 5-10k payout from release of equity as a final payment, I was told that if this is not the case then it would not meet the original proposal acceptance figure of 61p in the £1. So another year it is or the IVA would fail, so DFD say... Maybe I should re read my original proposal just incase - but I'm sure it's a pretty standard thing - no equity then it's another year :-(

FoggyBrain_2

No, it's not standard. This is why the protocols were introduced in 2008 and revised in 2010, until that time all proposals varied wildly. And this is why many IP's are seeking to have old proposals brought into line. Admittedly some are far worse than yours, but many do get varied, as the creditors realise that they are no longer workable in todays economic climate. However, this needs the will of the IP to put the case forward. The proposed 61p in the £ is an excellent dividend and I am sure the creditors would accept a reduction (after all they agree sums as low as 20p these days!).

shelene

Hi, i have taken a look through my original proposal and in the outcomes forecast were 2 outcomes - 1 with equity from the house meaning 61% and the other with no equity meaning 23% dividend,
sooo was looking at ended at 60 mths, there is nothing to specically say if the property has no equity then it will be extended for 12 mths

however there is a clause saying -
I propose the iva will last 60 months - if at any time it becomes clear to my supervisor that all matters under the arrangement cannot be completed before the expiration of this period, then the duration of the arrangement can be extended in accordance with the standard conditions.

you reckon this is the clause they can get me to pay another 12 mths???

FoggyBrain_2

That one is a standard "get out" clause which allows the term to be extended if, say, you had a period of reduced payments, or missed payments to make up. The extension in lieu of equity should have it's own clause if it's there. At the time you were sent your proposal, you should have been provided with a copy of the Standard Conditions it refers to.

shelene

Defi cannot find a clause saying anything about a leui in equity, can't find anything to specifically say if no equity if available that it extends for 12 mths - where should I go for advice as DFD are saying the extention is correct way to go forward?? CAB or u think they won't really be specialist enough?

Will try to find these - standard conditions

shelene

Can't find the standard conditions, anyone know where I could get a copy - I guess they will be different now to what they were in 2007 :-/

FoggyBrain_2

Have a look here:

http://www.debtadvisorycentre.co.uk/standard-conditions.asp

Might I also suggest that you pop over to https://www.iva.co.uk. A few IP's post reguilarly there and might be able to offer an expert opinion. A rep from DFD also visits regualrly and often assists people in sorting problems out. At the end of the day, however, you will have to be prepared to acept that DFD hold all the cards (rightly or wrongly). However, they can only act within the agreed terms of your own IVA and the Standard Conditions referred to therein.

shelene

Thx just want to be sure before I sign anything else, I've read some posts saying if negative equity or less than 5k then IVA should finish in 5 yrs??
Be great if this is the case as I don't have any 'in leui if equity' clause in my original proposal, unless they have re-written it since and not told me?
I will ring debt advisory centre 2 moz 4 advice - thx

FoggyBrain_2

yeah -- the neg. equity, or less than £5k, allowing the IVA to finish at the end of 5 years in now incorporated into all "Protocol Compliant" IVA's. Generally those drafted after 2008.