F&F and reduced payments

[Jayne.pn]

Hi I would like some advice about offering a F&F after having our payments reduced. We were paying £210 a month until we had a payment break in November (month 53). From January our payments have been reduced to £160 and we have been told by GT that this will extend our IVA till December. This means as there is likely to be equity we are now looking at completing in December 2016.

If we were able to make a F&F offer, would it be 22x£160 or 16x£210? We were thinking of offering £3000, does this seem reasonable?

Hope this makes sense, thanks.

[Foggy]

I would think 22 x 160 but all will depend upon the equity provisions --- how sure are you that there will be equity and roughly how much ?

£3k would seem reasonable, taking into account that there would be two or three more payments made before the F&F goes through, so the creditors would be getting what they expected anyway.

[Jayne.pn]

Thanks Foggy. I'm not sure about how the equity would work out as it is a joint IVA and we have the £5000 deminus clause.
Current mortgage redemption is 92,000 and house could be worth between 130,000-150,000???

[lifenoteasy]

GT take a weird approach to equity and seem to lump de minimum together - check with them before you do anything.

[Jayne.pn]

Thanks, I did ask about it when they reduced the payments, but the person I spoke to had no clue what I was talking about! Hopefully I can speak to someone who can help, but it's not always as easy as it should be.
Thanks for the advice [:)]

[lifenoteasy]

but the person I spoke to had no clue what I was talking about! - See more at: http://www.iva.co.uk/forum/topic.asp?wh ... 715#579151 - unfortunately that seems to be a common statement for them.

[Foggy]

If you have in excess of £30K equity the de minimis clauses are kicked out of the picture in any event, so the 12 month extensions looks like the way it will go.

[Jayne.pn]

Thanks all.