F&F advice

[not long to go]

Completely out of the blue, my best freind who has a successful business has offered to pay a lump sum directly to my IVA co to finish my IVA

I pay £540 per month and have 10 payments left ie total £5400. Do I offer £5400 to pay it off or should i be offering less ?

note however, my iva has no minimum dividend; my original debt was £100k & my original payments were £1050, but 18 months into IVA, i lost my job and got a job earning less & my payment was reduced to £540 at the variation meeting.

I don't want to take the mickey, nor do i want my offer refused. should I offer the balance of £5400 total amount of payments left to pay as F&F or should I be trying to get this figure reduced so as to save my freind some money ??

Any suggestions and advice would be most welcome.

I never thought I would be in a position to make a F&F and can not beleive how good my freind has been to offer this payment.

[Foggy]

Hi. What a great friend you have

Personally, I would offer the full amount outstanding ( I assume you have no equity clause). Generally reduced amounts are accepted due to the circumstances (unable to continue due to health or work problems, sort of thing). And, to be frank, you have already had a substantial reduction in payments.

You could offer the friend the equivalent of the IVA payment for the duration, so as not to feel bad about not getting the amount reduced.

[not long to go]

another question in relation to me making a F&F offer

I have read an article suggesting that perhaps my F&F offer should be no of months of IVA left X montlhy payment , less supervisors monthly fee x months left

ie my payments left are 10 x £540 less 10 months supervisors fees, as there will be no IVA left to supervise.

Does this seem reasonable or out of order ?

many thanks

[kallis3]

You should just normally make an offer of as close to the original dividend as possible.

I believe that they will take off some of the fees but this should be discussed with your IP.

[luluj]

I would speak with your IP and gain their advice in putting your offer together - if it were me I would be offering as close to the original agreed figure as possible to ensure creditors received a better return.

Make sure your IP knows that the F&F money is only available for use in a F&F and it would not be available for any other reason.

[not long to go]

thanks for your suggestions; i got quite a surprise when i rang my IVA co today.

I have 9 payments left not 10 and they said that if i wanted a F&F offer, the meeting they need to call would take circa 12 weeks to convene; however if i wait until late March when I have only 6 payments left to make, I am allowed to make a one off payment equal to 6 months payments, without the need to call a creditors meeting and my IVA will be finished, apart from the completion certificate that they explained can take several months.

this means that the amount of money my freind will give me is less than they have offered to pay this week for me, so works out better for them also.

Roll on March, 4 months left now before Im able to make my last payment. I had no idea that it was possible to make the last 6 payments upfront all in one go without the need of a creditoes meeting, all as advised by my IVA company.

[MrsR]

Wow that all sounds great !

Roll on March indeed!

[Foggy]

It's a bit of "creative accounting". The creditors won't realise, by the time everything is sorted, that the money arrived in an early lump.

[MRBLUESKY]

Personally if your friend can offer you the remaining payments as a lump sum for a F&F offer now,i would make the offer ,if accepted it will release you from the terms and conditions of your iva.Because it seems that you are going to have a large percentage of your debt written off once your iva is complete, it would be a fiscal measure to do it sooner rather than later,if you have been offered funds from a third party to do so.