IVA F&F question!

jamie00353

Hello there, I am looking for a little help

I have an IVA processed by the CCCS (who were wonderful) i'm 6 months in. However there is a possibility redundancy may be looming next year (I'd receive no redundancy)

However my parents have suggested offering a sum so I can offer full and final.

Can you give me an idea of what is realistic?

The total amount I will pay to the IVA is £17,300 (this includes car HP of £5300k which i'm paying still)

I am paying around £170 in a month -41p to the pound

By the time i'm looking at this full and final, I will have paid about £2k into the pot (But fees may take sum of course?)

Please can you give me a general guide? I will of course seek full advice from the CCCS

Many Thanks

UpToMyNeckInIt

Your IP will probably take the line that you should pay off as much of your original debt as possible.

However, I have read advice on another IVA forum, and the general consensus is: offer a F&F equivalent to the minimum amount your creditors agreed to accept, (ie: your IVA monthly payment multiplied by the original 5-Year term - that would include all your IP fees), less the £2k you have already paid in.

Your creditors should see this as a win, as they are getting all their agreed minimum dividend at once, rather than waiting another 4 years.

Coupled with looming redundancy (sorry to hear about that), and the possibility that your IVA may have failed anyway, (your creditors would end up with even less in this event), I would suggest that such a proposal would stand a reasonable chance of success.

Finally, i hope you find alternative work soon.

Keep us all posted and let us know how it all goes. Good luck.

jamie00353

Thanks for your reply, its really appreciated!

If I was not to offer the full IVA 5 term amount, but as much as I could raise from a family member, does that stand a realistic chance of acceptance?

Its all a bit up in the air at the moment, as redundancy is only a possibility (i'm applying for other jobs so this does not happen!)

UpToMyNeckInIt

Ultimately, you will need to discuss this matter with your IP - only they and you know your exact circumstances.

But yes, I have come across people on another IVA forum successfully getting F&F for less than the originally agreed dividend - particularly when coupled with a major change for the worse in their financial circumstances eg: illness/redundancy etc.

Hopefully though, you find alternative / retain your existing employment.

Anondebtadvisor

If your circumtances have changed and yoiu can no longer pay the monthly contributions then it is possible to offer less than you originally proposed in your IVA.

As the OP says your own IP will be best placed to offer specific advice

All the best