early settlement

[indebtforever]

hi this is my first post but i read all the great advice given and thankyou for it i was wondering if you could advise me on an early settlement figure for my iva

i have been paying £550 for 2 years and with extras have paid £13,000 the total debt to pay was £31,000 this includes £8000+ ip fees but because of illness and job changes i can no longer survive with 4 children and keep the payments up i have a family member who will loan me some money to pay it off early i hope but what figure do you recommend i need to offer??

[MelanieGiles]

Assuming that you have a further 3 years to pay at £550 totalling £19,800, I would have thought something in the region of £18,000 would achieve the original dividend, but how much do you think that your family membe could afford?

If you are struggling with your payments, have you thought about asking your IP if they could be reduced to an affordable level?

[indebtforever]

hi thankyou for the quick reply i have been reading the paper work and it can be dropped 15% and no meeting would be needed also the money creditors will recieve in total after 5yrs will be £22400 this is minus the fees so if money will be saved for 3yrs on fees do you still think £18000 or it would be rejected?i think the fees are £1250 per year i am also to release a fee from remortgage of £1000 in 5th year but this is included in the £22400.A s for how much my family memeber could afford i am not sure she hasnt said a figure i was hoping on some ideas here that i could ask her

[MelanieGiles]

I think that you would be better to get a settlement figure from your IP who has detailed knowledge of you case, but the principle I always apply is offering the original dividend or as close as you can get to it.

[indebtforever]

thx again mel so is there no problem with asking and if the figure is too high everything just carrys on as normal?

[MelanieGiles]

That's fine, but I would seek a reduction if you are genuinely struggling - as you say there can be a 15% leeway before reverting to creditors, so on your figures you could reduce to £470 with the supervisor's permission.