F&F Offer question

[MrMeC]

Hi,

I'm looking at some guidance regarding making a full and final settlement.

My parents have offered to help close out my IVA with a lump sum, but I'm not 100% if the amount they can afford would be accepted based on the final pence in the pound (therefore is there any point in going about doing a F&F offer).

My IVA is on a dividend of 41.02 pence in the pound, a part from the 1st year of the IVA I've always paid more in monthly amounts due to a couple of wage rises, so if I carried on with the monthly amounts until the 60th month (very unlikely there's going to be equity so no 6th year), the pence in the pound would be 55.25, if I've done calculations correct...

If I were to offer the full and final settlement now, this would make the final pence in the pound lower @ 46.67, but still more than the original pence in the pound that's in my proposal.

So, would the final settlement more than likely be declined because they'd rather wait it out for the rest of the iva (14 months) and get a better return or accepted as the IVA would be getting settled earlier and based on the original pence in the pound, still be receiving a higher return?

There's no other factors for wanting to end it early other than my parents have offered to and it'd be a nice weight of my shoulders by getting rid of it - there is a possibility that my last year would be less monthly payments due to additional expenditure in my budget, but it wouldn't be anything major.

Any help appreciated!

[Foggy]

The basic premise we work on is that, in a FF, the creditors get what they signed up for. The amount to offer shoudl be based on whatever they are still to get by multiplying your current monthly amount by the number of payments outstsnding, plus 12 if you are a home owner. A 12 month extension in lieu of equity release is assumed, unless you can demonstrate that there will be less than £5k equity when the time would have come round to do this.

It takes a few months to set up a F&F, so you are cutting it fine now. Creditors are as happy to get out early as we are, especially if they get what they were expecting anyway.

[Lisa Thomas]

How many payments do you have left and how much do you pay each month?

Multiply these are you have your starting point for an offer.