Newbie Full and Final help needed

DitchPhoto

Hello all, i'm new here and hope you can help!

I'm just under 24 months into a standard 5 year ICA with Stepchange

The IVA has proceeded as required with no problems, and Stepchange have been great in a very 'hands off' sort of way

However there is soon to be a problem!

I've just found out we are expecting a baby, which while great news blows our IVA budget

However a family member has offered around 50% of my outstanding payments as a full and final

My questions before I do anything are...

What info/documentation would Stepchange need?

What are the limits/budges allowed under an IVA for baby related spending so I can fill out the item and expenditure?

I've noticed lots of low offer acceptance news on here, if this offer isn't accepted, what would happen?

Thanks again for your help!

longtermplanner

DitchPhoto wrote: »

I've just found out we are expecting a baby, which while great news blows our IVA budget

congratulations!

But a lot is going to depend on the details of your situation.

Will you be entitled to Child Benefit, Child Tax Credit? Are you (or your OH! I'm not sure who is pregnant!) going to get maternity pay?

If you just have a 'temporary' problem for a few months, then your IVA could probably be extended. In this case your creditors aren't going to rush to accept a 50% offer.

In any case, if you have just found out, presumably you can carry on making the usual payments for the next 6 months or so? At that point your relative's offer would be more like 75% of the remaining IVA payments so much more likely to be accepted?

milliemonster

Agree with the above, if you have just found out then you probably have another 8 months of no change in your financial circumstances before the baby is born anyway so another 8 months of payments you can make, then if you get maternity pay from your employer for a few months, how will this affect your IVA payment?, I think they would only look at your budget at that point and not before. I don't think they will give you extra allowances at the moment to buy stuff for you impending arrival and you will need to use your existing allowances to fund this.

If you are not planning to go back to work then your F&F will probably be attractive at that time, but if you are going to return to work, then they will probably just put your payments on hold for a few months and tag them on at the end. They would readjust your I&E when your baby is here and you have additional expenditure