Confused about F&Final

[maya]

I currently have paid 26 installments towards my IVA, cant remember what the original debt was (~£45k), but have paid £360 for 24 months ... so would end up paying £360 x60 = £ 21,600.
Just out of curiosity , i enquired today with my IP , what would the value be ,if, i wanted to settle the IVA early and was surprisingly told it would be the original value of the debt (~£45K) .. Is this correct?
Also im increasing my payments from this month by another £30 ( making it £390 ) , hence does this net off ( ie i end up settling the debt earlier than 60 months , thought not ) but appreciate if anyone can clarify on these 2 questions .

Thanks in advance
Maya

[kallis3]

For a full and final, the creditors usually expect as near to the original dividend as possible.

Even though you will be paying extra across, your IVA will still continue for the full period unless you end up being able to pay across 100p in the pound in less time.

With your payments increasing, it just means that your creditors will get more money back.

[plasticdaft]

If there was a reason to offer a full and final(retirement,redundancy etc),then an amount near to your original dividend would be a safe bet.

[Michael Peoples]

Your IP is correct in that the whole debt is still outstanding until the IVA is over. If you were looking for a settlement figure because of a windfall the total amount plus costs would be payable. If as Platicdaft says there is a reason for early settlement then creditors will normally accept a reduction.

[maya]

Thank you Kallis3, Michael & Plasticdaft

[MelanieGiles]

I can never understand IPs who quote figures to clients based upon repaying the whole debt. Clients are actually looking for guidance towards a figure at which creditors may be prepared to settle early, and we all are aware of that!

[David Mond]

The probability is that creditors would in my experience be prepared to discount what you originally promised to pay into the arrangement by about 10% to 15% - depending on how early (higher discount) your F&F settlement is.