F&F possibility?

blonde_redhead1

Im around 3 1/2 years into a 5 year 11 month iva and in a position where rent is increasing £50 this month, child benefit decreasing £13.55 per week end of month due to one of childen reaching 18, TC reducing £49.07 per week for same reasons (I think as im never sure with them) and fuel bill increasing £35 per month, so in total around £350 odd worse off per month. Current monthly payments are £233, think return around 12p in the pound which is already low and looks as if iva not viable now due to income reduction. It looks as if following discussion with a couple of good friends I might be able to make an offer of around £2500- 3000 as a settlement figure which in a way I would prefer rather than failing iva all together. I am going to ring stepchange tomorrow to chat about options, but does this sound like it might be viable?
TIA

UpToMyNeckInIt

These types of thing are so case-specific, that is is difficult to advise.

Worth a try for sure, I've certainly come across worse offers than what you are proposing, getting through. If your IP is of the opinion that this is the best offer on the table, they can approach the creditors for a variation accordingly.

Good luck, and let us know how it goes.

longtermplanner

This sort of thing makes me cross. It could and should have been predicted at the start of your IVA that your CB and CTC will fall significantly, and there should have been a proposal for your IVA payments to reduce at this point. And if that meant your IVA was no longer viable, then it should never have been proposed.

Did Stepchange suggest bankruptcy as an alternative? If you had gone bankrupt at the start you would have been discharged by now and any IPA would have ended.

A quick check on your figures. To get to 12p in the £, I make your original debt somewher in 90-110k? Was most of this Northern Rock which is why they insisted on a longer than 5 yr IVA?

Another quick check, the child isn't going to be in full time non advanced eduction next year? eg college doing As or BTEC or something? If they are, they you will still get CB & CTC.

Where would the money for a settlement come from? If you will be borrowing it, how will you ever repay it?

Do you know if any PPI has been reclaimed?

At UTMNII saya, I've heard of worse settlement offers, but it's hard to say without knowing a lot more about the case. Especially if Northern rock will have a veto.

blonde_redhead1

Thanks for the feedback.
Origionally it was a 5 year IVA with a £1500 advance at the very beginning on a £13,000 ppi we received as IVA was being set up to purchase a new car when ours broke beyond repair and a car was essential for my job. we had a further 6 month payment break last year when tax credits changed significantly due to an overpayment.
since IVA been set up we had the initial ppi back of around £13000 plus a further one this past year for £70 which went straight back into the iva.
Eldest is 18 now and has just finished 2 years at college and is trying to find work so child benefit stopping and tax credits changing is to be expected.
Our IVA contact did discuss bankruptcy in the beginning but did not influence our decision. I think back at the beginning we were just so grateful to have some support and find a way out of the mess we have been in, and at least we have learnt a very valuable lesson for the future in not wanting to ever rely on credit again. Funnily enough I did say to my husband last week that benefits are stupid to be included in an iva as they obviously are subject to fluctuations.
The f&f settlement is proposed from a family member who is not asking for it to be returned.
Ive had contact back from stepchange today to say they have now written to our F&F proposer and when that is confirmed will set up a creditors meeting and let us know when it is, so just a waiting game now to see whether our proposal is accepted.


Thanks for advise and I'll update as and when we know anything

blonde_redhead1

well, creditors meeting was held on Monday and they voted to accept the F&F settlement figure of £2500! Just waiting now for a copy of the variation meeting to come in post and for our third party to receive their letter letting them know how to make the payment. Step change have said they will issue completion certificate within 3 months of payment being made! So made up that they have accepted the offer and we wont have failed the IVA.