Full and Final settlement...

[Irelandboy]

Hi Guys,

I've just found this site, which I think is a great forum to discuss and feel apart of something, that would normally make us feel so alone. Anyway, i've been looking through my IVA agreement and relised how little the creditors are actually receiving, my initial debt was 31k and IVA agreed at 18k in Feb 2006 (including fees £8831, I think excessive) I've so far been paying 300 a month, with the exception of two months. totalling 9900. Can I go for a F&F settlement by this stage? I was looking at offering around 3500. How would this stack up to the original 28.76p per £. You guys are doing a great job, an IVA is the way forward, totally![^]

[kallis3]

Hi Irelandboy and welcome.

Glad your IVA is going ok. You can certainly propose a full and final, as to whether that amount is enough I don't know but one of the professionals will be along to advise about that.

You could run it past your IP.

You would also have to explain to them where the funding was coming from and tell them that it is only available for a full and final. I believe you also have to supply a reason as to why you want to do this (redundancy for example).

[MelanieGiles]

Hi there and welcome to the forum

Your IP fees were agreed as part of the contract between you and your creditors, but I agree that £8,831 seems rather high when you are only paying in £18k. Did you query this with the IP at the time you entered into the agreement?

I think your offer is too low, and would ask why you need to put a variation forward now rather than continuing to service the current agreement? Are you struggling to make the payments? And where would you be getting the extra money from?

[Irelandboy]

Hi Melanie, thanks for your responce.

I never queried the fees as at the time i was distracted by family issues. I believed that the 18k would go towards the total amount. The payments i'm not struggling to make, however I wish to conclude this IVA and get on with my life. I have received inthertence that I can use towards the F&F however, I'm not sure as to calulate to most reasonable early offer. Could you advise to the best amount to offer to secure a F&F? I really appreciate to help. Thank you

[MelanieGiles]

If you mean that you have received an inheritance, then this money belongs to the IVA as a windfall in any case and is not yours to negotiate with. I am afraid you will be rather stuck with the IVA, expecially as you are able to afford the contributions.

[David Mond]

Two problems Irelandboy.

Firstly your creditors agreed your IVA with the fees associated with that (and it was before the new IVA Protocol came into being in Feb 2008).

Any offer of a F&F would have to be agreed by your IP as to whether he/she was prepared to accept a reduction in approved fees.

Secondly your inheritance could trigger your creditors receiving 100p in the £ and your IP receiving all of his fees as your proposal would incorporate under the "standard provisions" for such eventuality., provided of course that the inheritance was of sufficient sum.