I’ve got an opportunity to exit my Iva early via a sprout loan, but they offer 85% of the total amount that id pay if I saw it through to the end.
Being in this Iva has had such a negative effect on my mental health, and I just want my life back even if it means higher payments via an unsecured loan.
£3741 is the amount owed, but £3200 is the amount that would be offered as a full and final settlement.
How do I present this in a way that seems attractive to my creditors?
You need just make the offer, your IP will present it to creditors, so best to get your IP on side.
You say £3741 is "owed" --- what is this figure : amount of debt left, or remaining IVA payments left ? Does it include anything towards equity release ?
Also ... what sort of time saving will ending the IVA now make ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
This is the remaining Iva payments. The amount owed I imagine would be closer to 6000 considering what I’ve paid so far (total debt 10k).
Not sure how much of a slice the Iva company took though, and I’ve just been transferred from freeman jones to credit fix so my guess is probably nowhere near accurate.
No equity release because I’m not a home owner. The time it saves is about 29 months. Iva due to end in august 2024
It is good that you will be saving them more than 2 years ( creditors do not like being in IVAs either). It is, however, unfortunate that you are with CF --- their performance with F&F offers seems to be inconsistent and they do prefer full, rather than reduced, offers. But this amount is the best you can offer and they should, hopefully, run with it.
Best of luck with the offer.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Would it be acceptable to make up the difference? I have a very small amount of savings to tide me over, but it’s large enough to turn it from a partial settlement into a full one.
On the other hand I suppose they could just as easily say that half of that is rightfully theirs anyway…
You could make up the difference, if you can afford to, but do not leave yourself on the financial brink again.
As long as these savings are from legitimate sources, like your share of overtime / bonus payments and modest savings on outgoings, they cannot claim them.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I’ll see what they say. I’m hoping they’ll take into consideration my mental well-being though I’m not hopeful, and I hope the prospect of finishing this thing early is attractive for them.
Definitely be explicit around the impact the iva is having on your life and how it is causing you issues with mental health and wellbeing etc.
The offer is a good one, but like foggy says ensure you leave yourself able to live - don't over commit your savings pool you have gathered .. you never know when the emergency will crop up !
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
