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Ok so we are 1 year into a 5 yr IVA and it's going ok so far, I have seen a lot of information about offering a full and final to finish the IVA early which I understand needs to be as near to the projected dividend as possible.
There are a couple of things I am wondering.
Firstly, I find it rather strange that an awful lot of people who are in an IVA suddenly find a friend or member of the family who is willing to loan them thousands for a F&F, I can understand this happens, but not on the scale I have seen, I am therefore thinking that these people have possibly come into some money and instead of declaring it as a windfall, are somehow managing to get a friend or member of the family to write a letter saying they are loaning the money as a F&F.
Now, we are finding things ok and as we had been in some debt for some time and used to living on a very tight budget, we are finding the allowances we have are ok and we are able to put some money away every month, we are wondering if we could save as much as we can and then in a year or so's time, offer our savings as a F&F, would this be acceptable or would we have to do the 'a member of my family has offered this money' thing?
I am fortunate that I earn extra money through unsocial hrs payments and occasional overtime that is not calculated in my basic pay for my IVA payment (I can keep 10% above my basic pay and split any more 50/50 with the IVA and for me to keep) so I have enough to save each month.
As we have been paying extra in every month we have paid over an extra £1200 in the first year alone than was expected, this is great as it means our creditors get a better dividend, but what I need to find out is the expected dividend is 20p in the £1 which works out at £15k to be paid back, I understand that I will always owe the total debt plus fees until the IVA completes, but would the extra I will have paid in have any bearing on the amount I can offer as a F&F?
For instance, by this time next year, I would hope to have £6k saved, at that time the remaining payments total £8k, but with the extra I have paid in this would come down to about £7k, do you think my IP would take that into consideration when looking at a F&F as my proposal only states that the dividend expected is 20p, which they would still be getting, but 3 years early?
I am sorry for the long post but I would be grateful for any thoughts
There are a couple of things I am wondering.
Firstly, I find it rather strange that an awful lot of people who are in an IVA suddenly find a friend or member of the family who is willing to loan them thousands for a F&F, I can understand this happens, but not on the scale I have seen, I am therefore thinking that these people have possibly come into some money and instead of declaring it as a windfall, are somehow managing to get a friend or member of the family to write a letter saying they are loaning the money as a F&F.
Now, we are finding things ok and as we had been in some debt for some time and used to living on a very tight budget, we are finding the allowances we have are ok and we are able to put some money away every month, we are wondering if we could save as much as we can and then in a year or so's time, offer our savings as a F&F, would this be acceptable or would we have to do the 'a member of my family has offered this money' thing?
I am fortunate that I earn extra money through unsocial hrs payments and occasional overtime that is not calculated in my basic pay for my IVA payment (I can keep 10% above my basic pay and split any more 50/50 with the IVA and for me to keep) so I have enough to save each month.
As we have been paying extra in every month we have paid over an extra £1200 in the first year alone than was expected, this is great as it means our creditors get a better dividend, but what I need to find out is the expected dividend is 20p in the £1 which works out at £15k to be paid back, I understand that I will always owe the total debt plus fees until the IVA completes, but would the extra I will have paid in have any bearing on the amount I can offer as a F&F?
For instance, by this time next year, I would hope to have £6k saved, at that time the remaining payments total £8k, but with the extra I have paid in this would come down to about £7k, do you think my IP would take that into consideration when looking at a F&F as my proposal only states that the dividend expected is 20p, which they would still be getting, but 3 years early?
I am sorry for the long post but I would be grateful for any thoughts
As as I understand it the terms can be renegotiated at any time as long as all the creditors agree to the change. It's not uncommon to agree F & Fs because creditors may like to accept a bird-in-the-hand approach rather than sit out the full 5 years when a debtor may default or lose income stream before the end of the deal. I read that IVAs have a failure rate of 20% - 30% (if you believe statistics!). Even the payments over 5 years don't add up to anything like the 100% the creditor is owed which helps to focus their money minds when a F & F appears on the horizon 
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