Full and Final - IVA

ivamiss75

Hi all

so i am at the end of year 3 of my IVA and in a position where my family have offered to gift me 12k to offer in full and final payment
i asked my IP firm to put this to the creditors and they did - after the 34 days notice they have to give the virtual meeting was set up for Monday 7th Jan... we're still in the meeting as 1 of my creditors (who has the majority) is rejecting it.
we've worked the numbers and if they say yes they will actually be better off now and risk free....
if they reject - they will most likely lose most of the rest of the money as i will end up not being able to make payments (as my reasons for wanting to end it are to move to the south of england to help look after my elderly father).
this creditor is sticking firm and saying she thinks i can continue to make my payments when i move south.... how i have no idea.....
so my IP people are escalating up and i think my actual IP himself will be involved in the next day or so... (time runs out on monday 21st Jan).
anyone had any issues like this and any advice?

UpToMyNeckInIt

Hi ivamiss75,

Definitely sounds like something that should be escalated to your IP rather than a case worker. I am surprised to hear that the IP has not already been involved frankly.

Based on the information you have provided: Assuming this £12K gift equates to what your remaining IVA payments would be, coupled with your change in financial circumstances, it sounds like this one creditor is being foolish - she may end up with a lower dividend if you fail the IVA anyway. (You referred to this creditor as 'she'. I assume therefore that you are talking about an individual, rather than a company?).

Whilst I have heard of many similar F&F offers being accepted, this just goes to show that us IVA customers cannot assume anything when variations to the original terms are proposed.

Another option might be for the family member gifting this money, to put it in an account in their name, but set up a standing order into your account, equivalent to the IVA payment. You could then re-apply to do a F&F once you have moved down south, and can demonstrate that you have had to give up your job, can show new address proof etc).

Alternatively, is going bankrupt a viable option for you?

Good luck and keep us posted.

ivamiss75

yep we've worked out just this week the most they would be likely to get is £11,700!
whereas i'd default i think as soon as i actually tried to move south.... as i'd have to keep my mortgage payments and also try and find rent money - with no guarantee of a pay increase to help soften that expense....
I am really trying to avoid bankruptcy....

ivamiss75

after escalating it several times and writing a formal letter to the IP himself asking him to get involved. the creditor finally changed their vote to an acceptance this afternoon (at the 11th hour!) so i am waiting for the paperwork.

but it was accepted.

now to find out how much more admin is really involved before it truly is closed!

*huge sigh of relief*

UpToMyNeckInIt

Hi ivamiss75,

Congratulations - Good result.

Nice to see an individual persevering to get the desired outcome.

At least you can now concentrate on your family, and not having to worry about the IVA.