Me and my wifeI have an iva and would like to know if and what i should offer as way of a Full and Final payment.
I have been paying into it at £256 for the the past 8 months, this wil increase to £286 from next march.
We did the iva for 80k and have about 70k in equity in the house.
I wanted to know about the full and final because i am worried that after 4 years the iva company will ask me to get a remortgage to raise about £30k.(i dont know exactly), and if i could`nt get one they would be able to(i think it would be a lot higher rate)and i could be paying this for years.
i spoke to the company about this and they said that after 4 years i would need 2 quotes from any mortgage company to confirm that i could`nt get a re-mortage and the iva would continue for an extra 12 months.
i don`t know if i trust them, so any advise would be very helpfull.
manythanks
Last edited by Craig.l123 on Mon Nov 07, 2011 1:30 pm, edited 1 time in total.
Hi Craig, 12 months in lieu of equity is pretty normal within the IVA and if it's applicable to you it will be written in your proposal in black and white.
To offer a full and final you will need to offer as close to the original dividend as possible, would the funds come from a 3rd party?
Which company are you with? x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Hi, Andy gave you some good advice on your previous thread. You would pretty Mich have to offer as close to.your original dividend as possible.
Your ip is correct in that if you can't remortgage your iva will more than likely continue for a further year in lieu of that equity.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
lesley_ wrote:
Hi Craig, 12 months in lieu of equity is pretty normal within the IVA and if it's applicable to you it will be written in your proposal in black and white.
To offer a full and final you will need to offer as close to the original dividend as possible, would the funds come from a 3rd party?
Which company are you with? x
Thank Lesley
sorry , what does that mean in my case.
i dont know yet how i would get the funds ,what sort of money are we taking about.
i`m with varden nuttall
x
Check what it says in your paperwork initially about equity release.
As previously stated, you would need to propose as close to your original dividend as possible. You would need to state where these funds come from and that they were only available for a full and final.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
My experience of VN is that they aren't supportive of f&f proposals with a reduced dividend unless there is a very compelling reason. So much so that I have put my f&f in the hands of another IP to deal with my IP! Basically, if you are choosing to offer a F&F rather than being forced by circumstance you will struggle to get their backing unless offering the full dividend.
Craig you need to look at your proposal as Kallis has said to see what your original dividend was, ie, the amount to be paid back accepted against what you owe. Look at what you would need to pay to meet the dividend if you let the IVA run it's natural course, that would be the amount you would need to try to raise to offer a F&F, for instance, my dividend on my proposal inc fees is around £15k against a debt of £58k, if I let my IVA run it's course I would still have around £14k to pay to meet this dividend so I would have to try and find as near as possible to that £14k to offer a F&F, plus have a legitimate reason for doing so, hope that makes sense
I also forgot to mention, as you have an equity clause aswell, it is unlikely you would be able to remortgage to release the funds, so a further 12 months of payments would be proposed instead, you would need to add this total sum onto the remaining total number of payments expected to give you a figure for a F&F
Why do you need to use another IP BofL? If you have an offer to make to end your IVA early by paying in a lump sum your IP is obliged to put it forward regardless of what they think of it.
I hope you have been reassured regarding your situation. If not please let me know and I will be happy to look into your case for you.
BofL im sorry you feel that you have not been supported by Varden Nuttall with your full and final offer. I obviously cant discuss case specifics on a forum but if you would like me to look into your case I would be happy to do so.
In general terms, if a clients circumstances had not changed (i.e. they can still afford contributions) and they wish to offer a significantly reduced full and final we would advise the clients that there is a good chance creditors will not accept but as Melanie quite rightly says, we have an obligation to put the offer forward to the creditors.
Hi Gareth and welcome to the forum,what percentage of a proposed dividend,would you think that creditors would look as a good offer for a F&f settlement.Assuming the clients circumstances had,nt changed.
Last edited by MRBLUESKY on Tue Nov 08, 2011 6:04 pm, edited 1 time in total.
I hope you have been reassured regarding your situation. If not please let me know and I will be happy to look into your case for you.
BofL im sorry you feel that you have not been supported by Varden Nuttall with your full and final offer. I obviously cant discuss case specifics on a forum but if you would like me to look into your case I would be happy to do so.
In general terms, if a clients circumstances had not changed (i.e. they can still afford contributions) and they wish to offer a significantly reduced full and final we would advise the clients that there is a good chance creditors will not accept but as Melanie quite rightly says, we have an obligation to put the offer forward to the creditors.
Thankyou all for your help and advise.
It is very reasuring to know there is so much help out there.
In my case i am happy with vn but am looking down the line and dont want to be paying this for the next 25 years.
MrBlueSky its difficult for me to say what would be acceptable as it is very subjective. We dont have a specific percentage rule.
For example if the original offer was 50 p/£ and you offer 10 p/£ and yet can still afford your contributions your creditors are not likely to accept unless you have extenuating circumstances. However if your offer to complete was 45 p/£ for example the creditors may decide that it is better to get a lump sum now rather than take the risk that the IVA will successfully complete.
If an offer is considerably lower (as per my 1st example) then it is likely that we would recommend against putting the variation forward. Putting a very low offer to creditors with no reason could prejudice the creditors against future offers so its worth considering if the offer is fair and reasonable.
hi Craig sorry I appear to have ignored the posting, sometimes in the week I don't get much time at the beginning of the week to post due to work committments. I'm sure you've got the advice you need from above and Gareth is contactable too which helps get case specific advice.
All the best. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
