calculation for iva final settlement figure?

4 posts Page 1 of 1
Post Reply
 
 

bdf

User avatar
Posts: 1
Joined: Mon May 21, 2007 7:24 pm
Location:
Post by bdf » Mon May 21, 2007 7:25 pm
Quote
I started an IVA 12 months ago and am in a position (thanks to help from my parents) to be able to offer a final settlement figure to my creditors. I have received conflicting information as to what would be an acceptable offer and one that the IP would be prepared to recommend to the creditors in their proposal. Is there a set calculation/formula that you use to arrive at this figure?

Many thanks for your help
Last edited by bdf on Mon May 21, 2007 7:26 pm, edited 1 time in total.
Top
 
 

Adam Davies

User avatar
Posts: 14596
Joined: Thu Mar 29, 2007 12:21 pm
Location:
Post by Adam Davies » Mon May 21, 2007 7:34 pm
Quote
Hi
There is no formula,what you need to do is offer a dividend slightly higher han you were going to.For example if you originally were going to offer 30p in the £1 dividend you would be wise to offer 32p.There should be a saving in IP fees [3-4k]but a fee for a variation meeting [1k]so try to work out your remaining payments less 3k and add on the 2p extra dividend.
Remember that your IP will have to put your proposal forward,its not for them to decide yes or no,its your creditors.
Good luck

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp
Andam Davies
Top
 
 

MelanieGiles

User avatar
Industry Expert
Posts: 47612
Joined: Tue Jan 09, 2007 10:42 am
Location:
Post by MelanieGiles » Mon May 21, 2007 8:10 pm
Quote
As Andy says, a good marker is the level of contributions you have remaining, discounted for any saved fees. Most practitioners will charge a variation fee, which also needs to be taken into account. And do try to improve the offer to creditors to guarantee success.

Ask your IP to provide you with a figure they would be happy to recommend to your creditors.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk
Regards, Melanie Giles, Insolvency Practitioner
Top
 
 

Adam Davies

User avatar
Posts: 14596
Joined: Thu Mar 29, 2007 12:21 pm
Location:
Post by Adam Davies » Tue May 22, 2007 10:51 am
Quote
Hi
As Melanie states ask your IP to supply you with a figure that they feel is acceptable but do not accept the "your remaining payments" answer because this is a bit of a cop out on their part
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp
Andam Davies
Top
Post Reply
4 posts Page 1 of 1
Return to “full and final settlements”