f&F NIGHTMARE

[johngi]

HI ALL
ok so just received my f&f figure (finally!) and iit is a whopping £23656.61 my mum in law was going to pay it off for me but there is no way she can raise that sort of money.
currently paying £300mnth with approx 3 years left (increased time at last review). i have 6 kids, my husbands wage has gone up this year to 18000 but i will not be entitiled to wftc and will have an overpayment of approx 4k, his wage will in fact be going down again as he has been put onto days and will not get his shift allowance which was 15% earlies and 25% on lates. my ip says in letter that i can offer a lower amount but what? we were paying £525mnth for 1st year and have paid £300mnth for the last 12mnths i am terrified of the next review. should i just let them make me bankrupt although it would be hell because of bankaccounts and my sons dla payments etc or what?
any advice please i am tearing my hair out here!!!
thanx
michelle

[kandh]

It really depends on what your original debt was and the dividend being offered? If you are able to put these, it might help to figure it all out?

Kerri x

[johngi]

it says on my review that total debt is 26331.73 but thats not including fees and in variation order aug 2007 dividend is 54.94p, are these figures any good to you? it goes totally over my head.

michelle

[kandh]

It does seem like the F&F figure you have been given is the total debt amount (plus the fees etc). To offer a F&F, you need to offer at least what you would have paid for the duration of the 5 years as a starting point.

You paid 525 for 12 months = 6300
300 x 12 months = 3600
Total paid to date = £9,900

This would mean that you are paying approximately £7224 in fees.

Assuming you are paying £300 a month for the next 3 years, you would pay an extra £10,800, with the total payments over the 5 years being £20,700 which brings your overall dividend up to 61p/£, so that gives you an idea of what the creditors are looking for.

I'm no expert on this so hopefully one will be along soon to advise further as to what figure you should be looking at and to give you the ins and outs of F&F's a bit better.

Kerri xx

[MelanieGiles]

How much do you feel you can afford?

[johngi]

hi what do you mean? my mum in law says max of 9-9.5k for f&f but if we cant settle i would have to ask to lower payments and i dont think they would accept it
michelle

[MelanieGiles]

Why not offer £9,500 to your IP in full and final settlement - they can only say no, and the downside for creditors is that they will get very little if anything under bankruptcy proceedings.

[johngi]

hi
if i offer this money what happens to the iva if they turn down the settlement? do i have to start over or does it just carry on as normal? i have tried phoning but i never get to speak to my actual ip just supervisory dept and all they say is they will look into it and never get back to me.

michelle

[rayb]

Hi,

If you go on to the insolvency website and search for your IP you should find there name and email details and you can then contact them direct i.e the organ grinder instead of having to deal with the monkeys!!!!

[johngi]

hi
thanx for advise what website do you mean?
michelle

[rayb]

I believe it should be http://www.insolvency-service.co.uk/newipsearch.htm

[johngi]

hi
got it and found email address thanx. should i e mail and tell him everything and include the offer (i have heard that they will try to up it, should i offer less and let them barter me up to 9k or what?) i havent got a clue how these things work. the settlement figure they gave me had no break down of what has been paid in or out or who crediters are or how much i owe them, should i offer crediters directly?
sorry for all the questions but i dont know who else to ask who could give me an impartial answer this site is great.
michelle

[rayb]

I think you should email first and say how unhappy you have been with the service that you have received obviously with nobody getting back to you etc and also make the offer of £9.5 and sit back and see what happens. The worst they can say is no but from a creditor point of view (if it was) I would be happy to get some money sooner rather than later