IVA - Full & Final Settlement Offer

FiatFan_2

Your IP should have to give you official notification if they were going to take any money from you other than your agreed payments.

Good luck with the F+F and finding employment soon, please let us know how you get on

fred98

Playing hardball with the creditors!!! We have £6k remaining from my redundancy funds, I've made it clear that these funds will ONLY be made available to the IVA for the purpose of a full and final settlement.

Fully aware that the funds are "due to be paid into the IVA anyway" as per the terms of our agreement however, if our offer is not accepted then seriously considering using the funds to pay off a debt with parents and facing the consequences of a termination / breach.

The offer has been presented in a take it or leave it style, its a dangerous tactic for sure, one that others would perhaps perceive as wreckless / ignorant but to be honest I'm at a point where I actually don't care anymore!

adyj73

Interested to know the outcome of this Fred. Keep us posted as our company is running massive layoffs next year so I have a similar situation brewing...

fred98

Absolutely delighted to report that our full & final settlement offer of £6800 was accepted yesterday (had the IVA ran its term the projected balance was £11,000) so that's a saving of 38.2% by concluding it early.

Now for the really interesting bit....


Today we received written confirmation from our IP, this contained an illustration of how the voting was concluded. To my amazement 5 creditors failed to show for the meeting and therefore "LOST THE ABILITY TO VOTE", it just so happens that the 5 who didn't vote were those we had the largest debts with. Of the 6 creditors who did vote we received a full house (only 75% FOR was required but we got 100%).

My advice to anyone who is considering offering a Full & Final Offer would be as follows:

1. Do NOT be afraid to make an offer, if you owe £20,000 and want to offer £5,000 go for it!!! What do you have to lose?

2. Do NOT allow your IP to cloud your judgement, these so called charities play the good ethics card but they are not as impartial as you may think, at the end of the day they are getting a cut so if you believe your offer to be sensible then assert yourself and insist that they present it to the creditors.

3. Most large corporates are keen to get "toxic debt" off there balance sheets,so once again do not be afraid to offer a low amount.

I would like to think that perhaps we got a bit lucky in that 5 of my biggest creditors didn't vote, but the more I think about it the more I think that perhaps its quite common that they don't all attend / vote in which case this whole process is very inconsistent!!!

Good Luck to you all and if I can help with anything please ask.

Onwards and upwards to a debt free future still hasn't sunk in, what a journey :-)

UpToMyNeckInIt

Nice one Fred - A wonderful account. Always nice to hear of a positive outcome. A Happier than expected Christmas coming up for you no doubt!!!

Just goes to show how, as useful as the advice on these forums is, each case has to be considered on its own merits.

Your observation about creditors wanting rid of 'toxic debts' is spot-on, hence why so many are sold to firms like Max Recovery etc.

Voting rules are the same as with your initial IVA proposal. (I had a similar situation in that my main creditor - £15K with MBNA, did not bother voting).

Nice to hear as well that it is possible to disagree with your IP, and still come out on top.

In fairness to your IP, they did put your case forward convincingly enough that it ultimately got accepted, and it cost them money to do so (you did play 'hard-ball' and took a big risk mind you).

ANY IP (charity or private sector), is going to be cautious about advising a customer to do something that hits them in their pockets!!!

I agree that, in drastic change in financial cicumstances like yours (ie: where you have lost your job), then as you assert, it is clearly worth considering a 'low offer' F&F. There is after all a risk that the IVA may have failed had it gone on and you were not able to secure new employment - a possibility that was not lost on your creditor's I'm sure.

However, my only word of caution to others contemplating a similar strategy: Some IVA companies 'charge' for proposing variation meetings, including F&F proposals, with these charges being bunged onto the end of your IVA if your F&F proposal fails. So ultimately there is a risk that this could cost the customer. (I suppose I can understand that: Otherwise any chancer could ask their IVA company to propose a low F&F at any time they feel like it).

PS: How is the job-hunting going by the way? If you have not already done so, I hope you find new work soon.

jusjus

AFTER YOU PAY the f & f settlement what shows on your credit score and does this have a long lasting effect? Can anyone advise me please

longtermplanner

AFAIK a F&F to end an IVA early just shows as a completed IVA on the credit record.

UpToMyNeckInIt

jusjus wrote: »

AFTER YOU PAY the f & f settlement what shows on your credit score and does this have a long lasting effect? Can anyone advise me please

as far as I am aware, your credit file remains damaged for the original 6-Years (from the start of the IVA), regardless of whether or not you let it run to term, or settle early.

You will however, be removed from the 'Insolvency Register' straight away.

Yorkie_2020

Just had my Full & Final accepted - and I know when I was searching for answers it was a minefield. So here's my story:


I started my IVA in October 2012, as after a business failure I ended up with debts totalling £192K. The IVA was eventually negotiated at 9.9p in the pound - or in easy terms: £400 per month over 60 months. Plus the usual of re-mortgaging, PPI etc etc.


I've been lucky to have an offer from a family member, and just this week the creditors have accepted £9K as full and final, against the £14K I had left to pay! No re-mortgage as the equity just isn't there, and a PPI feed in of £2.7K.


So all I can say is: don't be afraid to offer a low(ish) amount, cash is king and a lump sum to a creditor is clearly enticing!


Good luck with all your plans, big weight off my mind

millsetta

hi guys,long story short,dec 12 i took iva £29,500 following year inheritence,solicitor asked for f f,they said £38,700,paid in full,now i want to move home i have 70k equity and want another house for 75k,whats the odds on me getting a loan or small mortgage?,or should i not mention iva to current mortgage company and just leave 5k on my mortgage?