www.iva.co.uk

Hi

I am thinking of asking my parents to help me make a F & F offer

I have made 9 payments into my iva @ £388. The IVa totalled £23,000 of which £5000 is fees ( my settlement was 43p)

I would consider asking them for £12k, but would be relunctant to ask for any more as they would have to borrow it regardless

I have used the ratio of fees to payments to work out that if accepted the offer plus what i have paid in would be 36p to the creditors

There is no 2 year amendment cause in my chairmans report (wilson Philips)

I have worked out using the ratios of fees to payments that £12k plus what i have already paid in would work out to be 36p

Please can anyone help as to if this offer is a good one and likely to be accepted ( HSBC and EGG are the main creditors and MBNA were but have sold the debt on)

And thanks in advance to any posters

If there is no reason why your IVA couldnt run the full distance(ie impending redundancy etc),then I cannot see why creditors would accept less than they were going to get at such an early stage. That said there is no harm in suggesting to your IP that you would like to offer a F&F,just make sure that they know the 12k is the max your parents will pay up and see how it goes. Good luck.

I know it is very early but I work for the council and they are making us apply for our jobs at the moment in a restructure so I'm worried if the worst happens ......

If the worst came to the worst and you were made redundant, would you be eligible for any redundancy pay? If so, this could tide you over until you could find a new job.

umm not really 2 months, i don't think it happen but if i could make this offer and it accepted it would reduce the pressure

Speak to your IP and put your proposition forward to them and see what they say.

It is likely that your creditors would accept an early settlement as even if the dividend is reduced they get the money early. In addition, there is a danger that your IVA could fail even if you are not made redundant and quite a number do fail during the five years. You could then be made bankrupt and creditors would get nothing so 'a bird in the hand'.

What I would be concerned about is your parents taking on debt to clear your IVA. I assume that you would pay them back given that your IVA would be discharged but the danger is that if you are made redundant your parents would be liable for the repayments. If that does happen, then hopefully your redundancy would be enough to settle the loan so there is no concern.

Thanks for that michael

If the offer was made would you consider it a fair and good offer ?

The offer itself seems fine provided that the variation explains that your IVA is in danger and therefore it is in creditors best interests to accept. They may not accept it if they think that you only want out of the IVA without a justifiable reason.

Good luck.