Full and final settlement offer

[freshstart]

Why would my full and final settlement offer be accepted?

[kallis3]

Hi Freshstart.

It will all depend upon how much you are offering and what the reasons are for you offering a full and final.

[freshstart]

Hi-thanks for the reply. I had more to say but wasn't familiar with the process and cut myself off! Anyway this is what I meant to post:


I hoping someone can give me some thoughts on my situation as I am struggling to get my head around it. I had an annual bonus paid to me by my employer and then a second payment as compensation for them removing my participation from the same bonus scheme. My supervisor suggested I think about offering this as F+F settlement but by then I had spent some of it leaving £6000.

My parents were willing to offer me an additional £3000 to help clear my debts but don’t know I am in an IVA. My supervisor wanted to contact them to confirm the offer but I just couldn’t let them know I was in an IVA so had to dismiss the idea. My supervisor reckoned £6000 was still worth offering (even though they are entitled to £4166 of this anyway). The variation meeting is arranged for next month. I’ve tried to detail as much info as possible below:.

Original proposed contributions = £18,721
Contributions to date = £16,958 (over 32 payments + bonus payments)
Arrears = £699
Additional income not yet paid = £4,166
F+F offer = £6000
Supervisor fees were agreed at 15% of realisations and they propose to take £300 for the variation meeting.

My IVA also included equity from re-mortgage in final year of £12, 601. This isn’t realistic and equity is now estimated to be £0.

Dividend of the variation proposal is 36.96 in the pound instead of the original proposal of 46.7 pence in the pound.

Given I am paying £436 a month with 20 months to go, I just don’t see why this proposal would be accepted. Am I right to be so cynical or does anyone see any reason this would be accepted?

[MRBLUESKY]

Hi Freshstart some of the reasons why creditors accept F&F offers are that the lump sums gives them some insurance of collecting dividends early although not the full proposal,it removes the risk of you not completing your future payments because of unforseen circumstances like unemployment.Offers also help creditors remove bad debt from their books.Generally IP,S know whether a offer has a good chance of acceptence so if proposed gives you a good chance.Reading your post your IP seems to be doing a very good job to support you in this offer.I assume you spent some of your windfall with your IP,S permission otherwise that would be frowned upon.The fact you have no equity in your house should help in your favour.Good luck and let us know how you get on.

[kallis3]

I hope that your offer is accepted freshstart, good luck and let us know how you get on.

[freshstart]

Many thanks for your replies. My IP has been good and I did spend the money knowing what my entitlement would be so they've been fine. I guess it just seems too good to be true that it could over soon. I hope to remain realistic so I'm not too disappointed if it's not accepted.

[freshstart]

Guys - I can't believe I am posting this but my offer was accepted today!!!! 100% vote too. I am gobsmacked but over the moon. Just letting it sink in now....

[Foggy]

Great News. Congratulations

[Foggy]

PS --who is this wonderful IP ?

[freshstart]

Ha - wonderful indeed! CCCSVA.

[KAYKAY]

Congratulations.. and no need to borrow from your parents, that's excellent. Well done.

[freshstart]

Thanks, it's fantastic to think I can put it all behind me. It's also a huge lesson learned and I'll never fall into that trap again. I'm lucky enough to earn a decent living now and have learned not stick my head in the sand.

[ginger3232]

Congrat for myself to - here to a new start

[kazzafunk]

That's brilliant news freshstart. Enjoy your freedom and enjoy being able to earn a decent wage. I was earning a fortune just a few years ago but health has deteriorated. Only wish now I had been more sensible and put money away. Hindsight is a wonderful thing!!

[freshstart]

Thanks guys! Kind words are appreciated. There are good people on this site. Good luck to you too.