Are we working this out right??

[Foxa03]

Hi Everyone

I'm hoping you can help me out. I want to make a F&F offer to our creditors to end our joint IVA early.

We are paying £207 per month (total payments £12420)but we are only 6 months in. Our IVA documentation states that after 5 years the expected dividend (after Payplan's fees have been deducted) is £7200.

I work for local government and we are about to enter into a massive restructure - I am likely to either lose my job or get downgraded. My Dad has offered to help us end our IVA to avoid possible bankruptcy by giving us the money.

I'm thinking we should offer £7200 which is 100% of the expected dividend in addition to the 6 months payments we have already made. Is this right? Would Payplan still expect all of their fees for the whole 5 years even though they will not be managing the IVA?

It seems wrong to have to make an offer of about £11000 which Payplan will take £4000 of - for not managing the IVA!

What are your thoughts?

[kazzafunk]

I think IP's charge for the work done, so you will get charged for a variation meeting (ours was £300) - looking at our paperwork we were only charged fees for the number of months we were in the IVA.

I would go to them with a £7000 offer - you will need a letter from your father stating this offer is ONLY available for a f&f offer and will be withdrawn if refused.

Explain about fears for your job and any other changes in circumstances you may have and this will add weight to the proposal.

[MelanieGiles]

If Payplan's charges are based on them receiving 15% of all realisations into the IVA, then the fact that you will be settling early will not be relevant. They may be prepared to consider reducing their fees, but may say that this will only apply if you actually do lose your job rather than by speculating that you might.