F&F advice please

[royalblue]

Hi, Been lurking on here for nearly a year but this is my first post. I started my IVA in April 08 and i've luckily been offered the money to settle early from a family member as long as I pay them back. I'd much rather owe the money to them with less constraints.

My payments are £320 x 60 months and i've made 10 payments so far which leaves £16000 under my current terms. I've been advised by my IP there is a two month wait for a variation meeting so i'm thinking of offering £15580 as there will be at least another months payment before the creditors see the offer.

Does this sound about right?

How much of the decision is based on the reason for settling early? I'm sure the creditors are more concerned with getting the money early and in a lump sum aren't they?

Also, if it's settled early for the same figure they would have got over the length of the term, would they actually get more back as there would be less to pay in IP fees?

Sorry for all the questions and thanks in advance for any advice..

[kallis3]

Hi and welcome.

If you have £16,000 left and you are going to offer pretty near that, I personally think the creditors will snatch your hand off!

[David Mond]

You could probably offer £14,000 which would be a good offer - but if you want to offer more then go with it as creditors will accept.

[kallis3]

Good luck, and let us know how you get on.

[MelanieGiles]

Your IP has probably advised you of the wait period, to coincide with your annual review. Creditors do not like to see variations put forward during the first year, nothwithstanding you are offering to pay them much earlier. I would always recommend to my clients that the right time to do this is the first anniversary, when a report is due in any case and creditors can see that the IVA is not just being used as a way of avoding debt.

[royalblue]

Thanks for the replies..

Melanie, can you start the process of forwarding my offer now to conincide with the annual review or do I have to wait until the anniversary before preparing the offer?

Many thanks.

[MelanieGiles]

Let's talk about this offline - it is more appropriate than dicussing your personal affairs on the world wide web.

[royalblue]

Sure, just keen to get things moving.