I have been in an IVA for just over 3 years and just had my 3rd year review. My original proposal was for £300 per month for 60 months, total to repay £18,000.
Now as i have had pay increases during the IVA my contributions have increased during the 3 years to such an extent that i have paid back just over £14,500. My recent review has seen my contributions changed to £345 per month for the next 12 months.
Now i am in a position to offer a full and final from a gift from my parents. I have looked on this forum for many years and especially for information about the full and final payment but still slightly confused.
My question is, do i offer the remaining number of months x the original proposal (22 x £300 = £6,600) or the remaining number of months x my current contribution level (22 x £345 = £7,590)?
I just want to get some advice before i go back to my relationship manager as my last full and final was refused! in November last year as the amount offered (based on relationship manager advice) was deemed to be insufficient and in hindsight an offer of £4,000 was too low as it would have given back to the creditors less than what the original proposal would have given them.
Hopefully i can bring this IVA to an early conclusion but my previous relationship manager said she would not put forward another full and final under any circumstances but i would have thought that if i offer the full remaining payments then the creditors would look at it favorably.
You should base the offer on the number of months remaining x current payment .. as this is what the creditors are currently expecting to get in the long run.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Since when did relationship managers run IVA cases! You are the one in the iVA, and you are the one who has the right to put any offer forward you want to - but it does need to be your best offer. Based upon your current affordability, an offer of aroun £7,500 would seem sensible.
Thank you for your kind replies, i will put in an offer close to £7,500 and hope that gets accepted. On the whole my 3 years have gone pretty smoothly but it seems every time you get a new relationship manager there seems to be a rocky few weeks but then smooths out again.
As mentioned before the original full and final was a nightmare as the offer was deemed too low by the creditors but i was not happy with the way it was handled by my IVA company. It was originally accepted and i received a phone call to say it was accepted and then later that same day was advised there were some problems with the paper work and the meeting was adjourned for two weeks but not to worry as it was accepted.
I kept phoning to make sure that the acceptance of full and final still stood and i was told over the phone that it stood and they cancelled my up coming payment. In the end the full and final was declined and i was shocked at the decision bearing in mind i was advised by my relationship manager that it was accepted. I had to pay back the missing months payment that same month (just before Xmas) otherwise i would be reported to the creditors as breaching my IVA.
So i don't have much faith in getting a straight answer from my IVA company. I was also shocked to hear that i could not put forward another Full and Final also Melanie, in fact her attitude was rude when i asked why and she said you cannot end an IVA just when you want to. I thought the whole point of a full and final is that if you can pay back what you are going to pay back over 5 years earlier then the creditors get the money earlier. I guess either she could not be bothered with the paperwork or she was thinking about the fees the company will earn. Like i said thankfully i have a new relationship manager.
If by chance this relationship manager says no to putting forward the full and final who should i ask to speak to?
Once again thank you for your advise and i will let you know how i get on.
Thank you for your reply, i will ask to speak to my IP then to avoid confusion. It does seem that there were too many people involved in my previous full and final and i got the wrong advice.
I am with Freeman Jones and they have been fine during the past 3 years. Just a couple of times i have been left frustrated with them but i guess it depends on the relationship manager.
Let us know if you manage to speak with the IP directly Neil. Freeman Jones have a couple of really good guys who post on the forum for them, and hopefully one of them may pick up on your posting and invite you to also contact them directly. They have helped many Freeman Jones clients over the past year or so through the forum.
I managed to speak to my relationship manager (with the help of Steve Hewitt) yesterday and she spoke directly to my IP and they seem to think that an offer of £6,500 has a very good chance of being accepted. I am drafting the letters and sending everything off on Friday to arrange a full and final creditors meeting.
My original proposal was for £18,000 over 60 months (£300 per month) and with what i have already paid into the IVA £14745.39 and the gift from my father of £6,500 the creditors will receive £21245.39 which is more than the original proposal.
Do you think that the £6,500 offer is enough to be accepted? I just hope this time they accept as there are uncertainties in my work place due to an ongoing management review but off course we don't have anything in writing.
I will let you know how i get on, fingers crossed.
That's brilliant news Neil, and well done to Steve yet again for intervening on your behalf. I am sure that your offer is in the right ballpark, but do wonder why you need a variation of terms at all if you are proposing to repay creditors in full.
Sorry i might not have been clear, total debt was £28985.77, IVA was accepted for £300 per month x 60 months, so original proposal was for £18,000 to be paid back.
My disposable income was higher for previous two years so that is why i have managed to pay back £14745.39 so far which is earlier than the original proposal envisaged. I have 22 months remaining and currently pay £345 per month so based on my figures if the IVA was to run for the last 22 months i would have to repay £7590.00 but IP suggests £6500.00 as a full and final settlement offer now has a good chance of being accepted by the creditors.
I hope my calculations are correct, so even if the creditors do accept the £6,500 as full and final settlement i would have paid a total of £21245.39 but still less than the original total of my debt which was £28985.77 but still more than the original IVA proposal of £18,000.
Do you think based on the above i still need a variation of terms?
Interesting that they are suggesting that you pay a lesser amount than the value of your future contributions - but so long as they feel that they will get this past creditors I would not be complaining!
Thank you for your reply, now i am feeling worried again that it might not be accepted. I advised my relationship manager of the £6,500 my father is prepared to put forward as full and final payment for me and she spoke to my IP and he said that £6,500 has a good chance of being accepted.
I just hope he is right as after the previous full and final was declined i am now anxious. I know that 75% of the creditors have to accept but is the 75% calculated on the original proposal/debt amount?? As i know Natwest (largest creditor) and Egg (smallest Creditor) accepted my original IVA but MBNA who i owed just over 23% of my original debt declined my IVA. I am just worried that my payments have gone to Natwest and Egg during the previous 3 years and not too much to MBNA and therefore making MBNA my largest creditor and i know they declined my original IVA.
Sorry just starting to panic a little that it may get declined again.
Your own IP will give you far better advice than I can Neil. He knows your case, and he knows your creditors. Please keep the faith in the firm representing you, and if the offer is not accepted you an always offer a little more.
