Full and Final.

[jpj]

I am trying to offer a full and final settlement to my IVA,but it is taking forever!!

I got a settlement figure last september from my IP, which was based on taking into account 3 more monthly payments.
Creditors have messed about etc,and it is only now that they my IP is finally doing up my F+F offer!
I have made 5 more payments since then and will probably make another 2 before the creditors meeting.
it is going to be a tight squeeze to find the full settlement figure. should I still let them use the same redemption figure they gave me last September, or should I ask them to recalculate it,taking into account the extra monthly payments since then?

Thanks

[MelanieGiles]

I would have thought that the additonal payments you have made would be discounted directly from the lump sum to be offered. Where is the lump sum coming from?

[jpj]

£15k from a remortgage and 3k loan via our joint business from my business partner.Only problem is he is now not so keen to lend as he is a very private person and he has to write to my Ip and submit his copied Id etc.
As im paying £600 a month I had hoped the extra payments might cancel out the need to borrow the 3k !
Can you do a full and final based on a lump sum and an agreement that a certain more future months payments are also made? i.e 3 months (or is that cheating a bit?)

[MelanieGiles]

I would agree that the additional payments should cancel the third party contribution, but you will have to seek directions from your own IP in this regard - and there is no harm in offering a full and final settlement with a few additional contributions - anything to improve the offer made to creditors would be welcomed.

[jpj]

Thanks Melanie...I dont know what we would do without you!

I will write to my Ip and see what I can arrange [:)]

[jpj]

Hi Melanie
I have spoken to the guy drafting my F+F settlement and he seems happy with my proposal of making a few more monthly payments,lets hope my creditors do!!!

[jpj]

Just one other question.... As I mentioned my IVA has taken a while to put together and my remortgage offer is several months old now, If I got the F+F accepted then found out I couldnt get a remortgage after all ,would my IVA fail because the F+F had fallen through, or would I simply carry on paying monthly for the remainder of the 5 years?? Thanks

[MelanieGiles]

It is essential to check with your mortgage broker about the validity of the offer, indeed I would be concerned if an IP would put forward such variation without checking such an important point. The offer can probably be ressurected, but there is no point in putting something before creditors which cannot be achieved. You and your IP would just lose credibility.