www.iva.co.uk

Hi all, I am at year 3 of 6 year iva I pay £616/month and because I am always borrowing cash from my mum she has offered me £13,000 to F&F my IVA. I called my IP and was told an F&F is not possible as I have not lost my job and can pay. Are they just saying this as they will loose out on 3 years of fees? or is this fact?

Thanks for any advice

Mark

Hi and welcome to the forum. I wasn't aware that they would refuse to put forward a f&f offer.

I'm just someone in an IVA so please stay around and one of our expets will hopefully answer a little later. x

If its excepted then the payments would stop and they would not get the final 3 years of fees... about £6,000

Hi Mark. Your IP is duty bound to put your offer to the creditors. However, much will depend upon the vigour with which the offer is presented.

As you basically wish to get out of the IVA for no apparent reason ( other than, like all of us, to be shot of it) the offer has to be a good one.

You have about £22k outstanding and I doubt the creditors would see £13k as good enough, to be honest.

I'm also not aware, as Lesley, says that they can refuse to put forward your offer. However, the offer looks too low as £613 over 3 years is £22068 and I think that creditors like to see the offer to be close to the remaining payments.

Foggy - I must learn to type quicker!

I would imagine that if you still have 36 payments to make at £616 a month this comes to £22176, this is probably why they won't put forward your offer of £13k as your creditors would be unlikely to accept this as you don't have extenuating circumstances ie losing your job or unable to work due to ill health, it has nothing to do with fees.

If you want to offer a F&F in your circumstances, you need to more or less be offering the remaining sum of payments x months left to finish early

Ahhh I thought the F&F was made to the creditors at what they would recieve minus the IP fees. I think they get about £14,500 if it goes full term.

If you are struggling month to month then your income and expenditure may be set wrongly. Worth revisiting that with your IP too x

No because normally your IP takes fees off whatever payments you make, so there is no refund of fees if you pay early

so im in for the next 3 years then...

Nevertheless, it is your right to offer a f&f and your IP must put it to your creditors - Mark, they can only say no.

but if the IP takes a massive chunk out of it then the creditors will reject it. I have paid over £22,000 so far but just £14,700 to creditors...

so this info from my-iva-adviser.co.uk is misleading.

Your Offer = (IVA V.C.s x IVA Months Remaining) - S.F. Remaining
• VCs = Voluntary Contributions
•S.F. = Supervisor Fees

E.G :- If you are paying £300 into your IVA, and have been in your IVA for 24 months, and your IP is drawing £50 p/m Supervisor Fees, then,

Your Offer = (300 x 36) - (50 x 36)

Your Offer = approx £9,000

You need to read your proposal Mark as to how your IP is taking fees, it will explain clearly on there.