Questions about Individual Voluntary Arrangements and Insolvency.

Moderators: TalbotWoods, JaneClack

By road2recovery
#98836 Can anyone give me an indication of what I would need to offer for a F & F.

Total debts £96k. IVA approved in Nov 2005 at £440 per month, giving a return of 25p per £.

A kind person has offered to stump up the cash to clear my IVA and I need to know what kind of figure I need to offer.
By £76K
#98838 About £23K but you may be able to get lower as from a third party.

Shameless will be along soon with his trucheon to help!
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By Shameless
#98841 as a rough guide you need to offer around what they total realisations over the 5 years was going to be. To be honest with you usually people get to knock a few thousand off this figure but if your dividend was only 25p you might not get away with it being any lower.
By £76K
#98843 Don't forget your fees go down so knock this off the offer.
By road2recovery
#98844 Thank you people. I was thinking of about £21k - does this sound realistic. I know its virtually impossible to say without putting it forward.

Whats the process of doing it. If I contact IP and mention it, do they call a meeting and offer it? If its accepted and my friend backs out, where do I stand? If I offer and its refused, will they state what they require and give me the option of trying to raise the extra?


Shameless - I respect your authoritay, especially with that truncheon your avatar holds!!!!

:)
By road2recovery
#98845 So could we now be talking of about £18 - 19k, if I deduct the fees?
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By Shameless
#98846 LOL :lol: :lol:

Yeah 76 is right I forgot about fees those should come down just the Supervisors fees should come down pro rata by about 3 years worth.

You need to ring the IP explain what you want to do and follow it up with a letter. You will need your friend to provide a letter confirming they are willing to put up the money upon acceptance and that on the condition that it will settle all your debts in full.

If you do all that then your mate backs out before the variation its ok you can just pull it. If its after the variation then you would need to hold a further variation to revert back to the original terms if you could not find it yourself you would be given some time to get it but not alot.

Hope that helps let us know if you need any more help :)
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By Shameless
#98850 yeah try it. Worst they can say is no. And if they do because they want more money you can up it before the meeting.

Go I would always say go in a bit lower to start with and up it a couple of thousand if you can at the meeting should it be rejected.

I do think you need to get the revised dividend as near to 25p as you can though. You IP can give you more accurate figures depending on their current time and estimated time for the variation and to close.
By road2recovery
#100588 I have just spoke to Payplan, and they have informed me that their fee's are 20%, regardless of wheter the IVA goes full term or is settled early? Is this fair and usual practice?

I am looking at offering 18k as F & F, which will be £3216 LESS than what they would get if it went the full term. What do you experts in da house think??
By £76K
#100809 Were you offering House equity in the original proposal or was it just monthly payments?

20% sounds high but only really is if you are paying in over £40K

I calculate the original return to be on 22p & the revised to be 19p, so did you have something bumping up?
By road2recovery
#100812 I live in rented accomodation, so there is no equity to release.

On my chairmans report it says:

i) The Debtors voluntary contributions are to commence at £442 Per month minimum
ii) Unsecured Creditors are expected to receive an estimated dividend of 20 pence in the pound
iii) The Supervisor's Fee's are to be 20% of all contribution based realisations into the arrangement plus VAT and disbursment. Should a lump sum payment, including any payment in respect of equity, be made into the Arrangement the Supervisors Fees are to be limited to 10% of that sum

I read this as that I will be paying a lump sum to end the IVA early, they can have to limit their Fee's to 10%, not the original 20%. Am I thinking right here or not?
By £76K
#100817
Road2Recovery wrote:I live in rented accomodation, so there is no equity to release.

On my chairmans report it says:

i) The Debtors voluntary contributions are to commence at £442 Per month minimum
ii) Unsecured Creditors are expected to receive an estimated dividend of 20 pence in the pound
iii) The Supervisor's Fee's are to be 20% of all contribution based realisations into the arrangement plus VAT and disbursment. Should a lump sum payment, including any payment in respect of equity, be made into the Arrangement the Supervisors Fees are to be limited to 10% of that sum

I read this as that I will be paying a lump sum to end the IVA early, they can have to limit their Fee's to 10%, not the original 20%. Am I thinking right here or not?


If this is the original wording I would say yes go for the offer at £18K not sure about the lump sum this may relate to windfalls, there is not much differnce 18p or so now or 20p over 5 years
By road2recovery
#100818 Yes, that is the original Chairmans report, and original agreed rate. My first post was "off the top of my head". I will be due a review meeting sometime in Nov / Dec I expect, but hope to have my F & F offered before that time. I shall go ahead offering the 18K :D :D :D