F&F Questions

[proanduk]

Hello!
Personally, i feel I've done the wrong thing getting an IVA and am now trying to minimize the damage as best as possible. I may be wrong but a F&F seems the best option. I am earning more money through bonus and overtime as previously projected. Resulting in me owing £550 to my IP in just over 5 month of starting the IVA. (Due to the usual clause of 50% of extra earning's mjst be paid to the IP). I recived a letter after being asked to send my payslips in. the letter said I should pay this amount but it wasn't a demand and it might be an idea to recalculate my contribution.
I found this site and found out about F&F. Wanting to get out of paying extra money from bonus and O/T I sent a letter requesting my settlement figure. My original debt was £18,236 and a dividend of 48.99 to every £ was accepted.
My IP has replied to say the settlement figure is £10,430. My parents have offered to raise this money which I will pay back.
Am i right in thinking that I will still have the IVA on my credit history for 5 years?
Also, should I just offer the exact amount, or up it considering I have been earning more recently and my IP suggested increasing my contribution?
FInally, if the F&F is accepted will that be the end, meaning no one can claim my bonus andO/T?

Thanks,
Andy

[kpw]

HI

Did you know that your income would improve in this way before you started iva because it sounds like you could have afforded your debts?
However, it is important that your IP recommends that your creditors accept your f+f proposal.You will need to assure them that your recent xtra income and bonus is a temporary situation. If it is going to continue then they will want the iva to continue in order to maximise their return especially if it has only been running 5 months.You will need to clarify your position with your IP.I think in your present position your settlement figure sounds too low.
An IVA stays on your credit report for 6 years from when it starts.
Once a F+F offer is accepted and completed then your debts are written off (composition of debts) and there is no further claim on extra income or bonus.
But as i mentioned earlier creditors are unlikely to accept an early settlement because you do not want to pay additonal earned or bonus income.

[Adam Davies]

Hi
Not sure if I can agree with KPW.
Your creditors will be happy to accept an early F+F as they will get their money sooner.The secret is to offer an amount to give your creditors a 1-2p extra dividend,say 51p,and to ensure that your IP words the variation meeting to say that your parents are prepared to loan you the money only if the IVA is concluded and that you will be using all your disposible income to repay your parents.


Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[proanduk]

Hello again,
I spoke to one of the representatives today as my IP was "out the office". Anyhow, he answered most of my questions and I feel i might be getting somewhere.
I think I am going to ask my parents to offer £11k to ensure it is accepted and settle the thing once and for all. Going by your method AndyDavie, i think that will be reasonable and its higher than what my IP suggested. So fingers crossed....

[kah]

Am I right in thinking tha because I have an equity clayse in my IVA I am unlikely to be able to go for F & F without offering 100% of my debt?

[Adam Davies]

Hi Kah
Normally a fourth year equity clause will hinder you from offering a full and final,unless ,as you say,you are offering close to the full debt repaid.
However if there is a reason that may stop your IVA from reaching year four your creditors may accept a settlement equivelent to the original 60 x monthly payments.Such reasons may be a reduced income,illness or house price stagnation or reduction.
Your IP is the key,if they agree and recommend an offer then you are half way there.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp