Full and Final Question

[munchkin77]

Hi

I have not started my IVA yet but am curious about this full and final settlement as i know my cirumstances will change in the future for the better.

With a full and final payment is the offer only made if you can not meet the monthly payments? It may be possible that my partners Dad could loan us the money instead of paying out the monthly payments thus wiping our slate clean (from our perspective).

I wrote about this last night and Andy suggested that with debts of £51k and repayments of £630 for approx a year i should offer around £22k. Are creditors happy to get this full and final or is it that you offer a full and final because you cant afford the main payment. Sorry i may be rambling a bit just really interested in it as a possibility but can not find any great information on it.

I dont want to do a DMP as i am not sure when we will move it could be the end of this year of some time next year and at present i am £1000 a month short of monthly payments to my credit card!

[Jo Rolland]

All full and final settlement cases are judged by creditors on their own circumstances and merits. There is no "creditors will accept X% of the debt". Where debtors have been struggling for a long period of time and have been making vastly reduced payments, creditors are more inclined, if there are no assets to speak of and low income, to look more favourably at a full and final settlement.

So everything would depend upon your personal circumstances.

If you want to post a bit more information, I can help you further, but I would say that paying 40% of your debt in an informal full and final settlement would be highly unlikely.

[munchkin77]

Hi Jo

Here goes.

In the next year or so we are planning on moving overseas (I may go before my partner so payments should only be based on my new salary). Anyway there is a chance that I may be able to offer a full and final settlement early as partners parents said they may be able to loan the money to me (and we can pay back whenever) to clear everything.

If I move to the middle east salary would be higher as tax free. With what is being proposed there is a very limited chance that i will be unable to make payments and i will also not be considered on a low income so would that strike me out for a F&F.

I would like to clear it early if possible as only very young and want to start living. I know 5 years is not a long time but i dont want to move to a new country and be struggling for money with no help from people i know.

Sorry i may not be very clear... teaching at present and class are talking lots so keep losing my concentration.. any specific questions let me know and i will try and answer.

[MelanieGiles]

I am answering this as it appears to have been left in limbo - apologies if it has been answered in another,later posting but I have been away on holiday.

If you want to offer a full and final settlement based upon third party monies, this will need to be based upon your current monthly disposable income - if this is £630 per month, I would have thought an offer of more like £35k would be necessary.

[Adam Davies]

Hi
Here is the original question that I responded to as you need to read it in the full rather than the snap shot quoted above
http://www.iva.co.uk/forum/topic.asp?TOPIC_ID=8935
Regards

[MelanieGiles]

Thanks Andy

When I answered this post last night, there were no other postings to it. Don't know where Jo's reply came from!