F&F Settlement

[PJA]

If you make an offer of a full & final settlement, do you usually have to offer more, the same or less than the amount you would still have to pay into the IVA to the end of the original time frame?

Also, if you get an annual bonus, but it is not guarenteed, but you have recieved one for the last 3 years while in the IVA, would the creditors add an amount onto the F&F for this too (even though it is not a guarenteed bonus)?

[Adam Davies]

Hi

They will not expect an extra payment to cover possible bonus payments.

Some full and finals offer less than the amount left to pay, this is because there has been or is going to be a change in circumstances and a f&f is the best deal on the table.

If circumstances have not changed then offer an amount equal to the payments left, there may also be room to allow for a reduction in IP fees

Regards

[PJA]

Thanks Andy, that is really helpful