IVA and full and final settlement early?

SG_28

Do you know if they ask to look at our bank statements or anything to prove the money hasnt come from ourselves? I am just trying to work out on what basis they accept F&F, is it literally as easy as just telling them you have the funds as a gift and that's that?

FoggyBrain_2

They will probably require a letter from the donor confirming that they are offering as a full and final on your behalf. They should also put in the letter that the funds are for a full and fiunal only and will be withdrawn if the offer is rejected.

On no account say that the money has been gifted to you, as that would make it a windfall, payable into the IVA.

jiggyonthebus

Most IVA firms cannot advise you of a figure as you are asking the creditors to accept your best offer. You are inviting them to take the offer as it stands today and in doing so creditors are giving up on the possibility that you could increase your payments in the future. Therefore offer what you have been offered. An IP can not seen to be calculating what you can "get away with". They are there to be impartial.

You'll often need to provide evidence that the funds exist but it isn't normally necessary to send the cheque. People just aren't going to do the work for the variation report if you don't have the money! Plus, for money laundering purposes they have to be satisfied regarding the origin on the funds.

The person doing the report will normally include the line - "should the offer be rejected then the funds will not be available to Mr/Mrs XXXX". The report may state that that Mr/Mrs XXXX is willing to gift the sum of £XXXX as full and final settlement of all obligations under the arrangement. The funds are being gifted to the IVA...conditionally. Not gifted to the person!