www.iva.co.uk

Hi, After a recent mortgage rate increase and no way of moving onto a lower rate or moving my mortgage my iva is in serious risk of failing! im half way through a 5 year iva,
my numbers were
35k debt
15k agreed @ 250 x 60 months
Have paid 14800 after 30 months due to a ppi lump sum
i have 30 months @ 250 = 7500 left on iva to go
What would a fair F&F offer be?

Thanks in advance

Hi,

You should offer as close to the original dividend as possible.

Where would the money be coming from?

Hi, im only £200 off the original dividend as things stand at the min with 30 months to go! so that doesnt really help!
I havent decided where the money will come from yet...

Hi 1V .... the extra monies paid in bty the PPI claim go to increase the dividend, not eat away at it ... so, as far as your creditors are concerned, they are still expecting £7500.

So a F&F should be near that amount, unless there are mitigating circumstances which could be used to reduce the offer.

Hi foggy, thanks for that, was aware that it would increase the dividend, just wanted to know if say a 6-7k offer would be accepted as F&F offer? dont want to go in too high but would fully expect to be pushed for as much as possible from my ip..

In view of the fact that the creditors are actually getting more than they bargained for, I would think £6k offer is worth a try, as they would rather get the money 30 months earlier than previously anticipated.

Make it clear, though, that these will be third party funds and will only be made available for a F&F. Also ensure with your IP that, should the F&F be refused, the IVA can continue as before. (Some companies have been putting in a clause that if a F&F is refused the debtor will be made bankrupt, whic, so far, hasn't been tested but is a dangerous game to be playing).

Thanks, will go through it with my IP before any decision is made, Thanks for you help