F&F Offer

[Webby18]

Hi

Currently 12 months into my IVA (6 year payment term, negotiated up from 5 during initial creditor meeting). Paying £80 per month.

A relative has offered to pay a full and final settlement.

I have 60 months left @ £80 = £4,800.

The reasons for wanting to complete the IVA early are my mental health has suffered really bad with it, had massive anxiety around annual review even though it went fine, I own no property and have no valuable assets. My son will be going to nursery in August (just not sure on total hours yet) which will likely affect my I&E due to nursery costs.

My relative is willing to offer £6,500 as a full and final.

Any thoughts on likelihood of being accepted?

Thanks!

[Webby18]

Sorry just to add, actual debt amount at start of IVA was £12,000, if that makes any difference.

[Foggy]

A full and final offer (not settlement) is usually based on remaining payments, which, in your case, are £4800. I would think an offer of £6,500 would have them tearing your arm off ! Personally, I would only offer £5000. Normally there would be room to reduce this even further and still be attractive to creditors, but, in your case, £80 is a really low payment ( which is why they added the extra year ) and they are getting very little of that in the end, after fees and admin costs, so no real wriggle room.

[Webby18]

Hi Foggy, thanks for your reply and info!

Yeah sorry, not settlement, offer!

I wasn’t sure just because of overall debt amount and because it was early but I’ve read other replies from you about it reducing creditor admin costs over the remaining 5 years.

I just didn’t want to offer too low then it be rejected and take even longer to resolve due to the effect it’s having on my mental health. I think I may offer £6,000 just in the hope that they do tear my arm off and I can get it done and out of the way!

I’ll post any updated throughout!

[Webby18]

£6,000 offer sent. Fingers crossed.

[Foggy]

£6,000 offer sent. Fingers crossed.

Best of luck.

[Webby18]

£6,000 offer sent. Fingers crossed.

Best of luck.

Just a (late) update Foggy.

Offer was accepted in July. Received my completion certificate last week. So relieved it’s all over and I can now move on.

One question I had if you know - some creditors didn’t submit a ‘PDO’? All correct account numbers etc.

I know the IVA company send the completion certificate to all creditors. One of them isn’t on my credit file (who didn’t submit a PDO), what’s the best way to check that the account has been written off and closed, and is there a set timescale for them to do this?

Thanks

[Foggy]

Well done of getting it all tied up and completed.

A creditor might appear on one or more or none of your credit files, from the different credit reference agencies, so you need to check them all.

As long as a creditor was named in the IVA proposal and the IVA confirmed successfully completed the debt is legally written off and closed, regardless of acknowledgement from the creditor. However, for peace of mind, you could ask the creditors involved for confirmation.

[Webby18]

Well done of getting it all tied up and completed.

A creditor might appear on one or more or none of your credit files, from the different credit reference agencies, so you need to check them all.

As long as a creditor was named in the IVA proposal and the IVA confirmed successfully completed the debt is legally written off and closed, regardless of acknowledgement from the creditor. However, for peace of mind, you could ask the creditors involved for confirmation.

Hi Foggy!

Thank you! Was just over 6 months waiting for my completion certificate, so glad it’s over!

And thanks for that too. More peace of mind. I’ll probably double check with the creditor in question in a couple months to confirm.

Thanks for your advice since May it’s much appreciated! Take care

[luluj]

Great to hear its all sorted and you are now able to move on with your life. Best wishes