F+F confused.

[roz]

F+F confused.
We are currently just starting to look at the possibility of an f+f each but the more we read the more confused we get as to a realistic value to offer.
Below are the figures of one iva and would be grateful if you could shed some guidance before we approach our IP.
Debt £78650, Min cont £10700, min equity£21706 to give £32406 = 32p in £
50% of extra income also to be paid
Currently 3 yrs and 3 months into agreement £15360 paid so far.
End yr 4 remortgae estimated £22,000-£23000
Still to pay £225(monthly pay) x 21 (months)=£4725 +50% of extra earnings if overtime available and worked.
Due to the overtime worked in the pastthe 50% clause has ensured that the iva completes well in excess of the reqd 32p in £.
Any advice on a rough settlement figure would be gratefully appreciated.We are looking at raising the extra money reqd by a further equity release and/or family contribution.
As for the other iva its took me ages to type this one so well save that for another day.

[joh71262]

I can;'t give you any figures, but would you really want to look at releasing equity at this point, with the housing market as it is ?

Personally I would wait because if prices fall, there may not be enough equity left for this sum and you may end up in negative equity if you were looking at moving.

[Adam Davies]

Hi
You will need to give details of the other IVA as this must be interlocking because of the equity release.
Your creditors may want to wait until your IVA runs it's course as they seem to be benefiting from your overtime,however the house price slow down/reduction may make a settlement now more attractive.
If you can return the originally pledged dividend and maybe 2 or 3p more then you have a good chance
I suggest trying the 23k as an offer anfd the increase in mortgage payments will probably eat up all your disposible income[not including OT]
Regards

[roz]

Andy

You mention the other iva interlocking.
Both IVAs have an equity clause at the end of year 4 for the 80% equity release to be split 50/50 between the two and therefore both arrangements will raise approx 22000-23000 each from the release.
We have a slight problem with the second iva as the creditors claims were approx £17000 higher than the figures the IVA was originally set up from.This change of figures according to our IP was due to creditors claiming for payment protection policies taken out.
Due to this the payments asked for by our IP have always been made yet I estimate the fund to slightly under achieve.Therefore a f+f offer might save us problems over the next year.
For the second IVA we need to achieve 33p in £ so if we are to aim approx 36-37p in £ would this be a fair offer,too much or too little ?
Obviously I assume that the offer would now be in relation to the higher creditors claim value and not the original value stated in our IVA agreement.
Thanks for the info so far.
At the moment we are just weighing up our options and are obviously nervous about making any costly wrong moves.
cheers

[Adam Davies]

Hi
If you can return the pledged dividend[on the higher figures] on both IVAs you are in with a good chnace.If I were a creditor I would rather have my lump now especially if a large part of it was reliant on house prices.
Speak with your IP and if they agree a mortgage offer will be enough for the IP to call a creditors meetingso your only cost will be a valuation fee for remortgage purposes
Regards