Full and Final - Advice Needed

[herewegoagain]

Hi everyone, hope all is well.

A few years ago, I lost a fairly well paying job and found it impossible to find work for a year or so. Leaving me with unsecured debt of £49,894. At the time bankruptcy wasn't right for me so I went down the IVA route starting on the 24th of June 2015 and I have now made payment of £10,250 with just under half of the 6 month period gone.

I'm looking to move on from my IVA and am thinking about making a full and final offer. I have a total of 8 Creditors (3 of which are the same company) Can anyone offer any advice on the amount of money I would need to be offering for a serious discussion to be had. This source is likely to come from my father as a full and final payment.

I'm currently making payments of £307 into the IVA and have 39 payments to go.

Thanks

Gareth

[Foggy]

Hi Gareth. So, assuming you don't own a property, your creditors are expecting in the region of a further £12k from you. Factoring in adminstration costs saved over the next three years (offset slightly by the variation costs) in your shoes, I would think an offer around £9 - 10k would be looked at seriously. I have seen lower offers accepted, as well as higher ones refused, so it is always a bit of a punt.

It should take a couple of months to put an offer together (although a few firms can take longer -- up to 6 months in one case). You are free to specify that interim payments will be deducted from the lump sum if you so wish.

[herewegoagain]

Hi Gareth. So, assuming you don't own a property, your creditors are expecting in the region of a further £12k from you. Factoring in adminstration costs saved over the next three years (offset slightly by the variation costs) in your shoes, I would think an offer around £9 - 10k would be looked at seriously. I have seen lower offers accepted, as well as higher ones refused, so it is always a bit of a punt.

It should take a couple of months to put an offer together (although a few firms can take longer -- up to 6 months in one case). You are free to specify that interim payments will be deducted from the lump sum if you so wish.

Hi Foggy,

Thanks for taking the time to comment I’m with PayPlan and they seem to be fairly slow!

I guess the other issue is the valid reason for making the offer, in your experience what sort of things would be acceptable?

So £10,000 minus 2-3 payments in the meantime of around £1000.

I assume if rejected I just carry on paying?

[luluj]

As foggy suggests an offer of £9-10k should be seen positively. If your father is willing to support this then you can simply say that in order to complete the iva early a third party offer of x is available to end the iva. Make sure it states if offer not accepted then father will not make the money available for any other use.
If there is a change in circumstance leading to the offer then add that in - this might be a change of employment abd salary; health condition etc.

Good luck and let us know how you get on

[Foggy]

Payplan is one of the slower providers, yes! They also have a habit of inserting references to bankruptcy into offers, which is totally out of order -- so keep an eye out for this and ask them to remove it if they try.

The usual scenario, if an offer is rejected, is that the IVA continues as before -- unless the reason for the offer is that the payments are not sustainable.

The reasons of simply wanting to put an IVA behind you and get on with your life are perfectly reasonable -- and, indeed, the creditors would like the same !