Full and final settlement offer

[Butterfly30]

Hello,

I am 29 months into my 5 year IVA. My parents have offered give me the rest of the money to pay my IVA off. I pay £160 per month and have been for 29 months. The total I owe to my IVA after 5 year is £9600.

I have paid £4640 as of today. So I have £4960 left to pay.

My parents have said they would be happy to offer £3500. Does that sound like a reasonable offer? Or should I offer more? I think £4000 would be the most they could offer.

Any advice would be great, thank you.

[Michael Peoples]

Your offer seems very reasonable and in the unlikely event it is rejected you could increase the amount. I would try the £3,500 and good luck.

[Butterfly30]

Thank you Michael. I think I will just have to go with it and hope for the best.

I have read somewhere that these companies charge for the variation meetings. Is that correct?

[Foggy]

....and, by the time it all goes through, you will have paid another couple of months, so the offer will be all the nearer to "target".

[Butterfly30]

That's what I was thinking... thanks for confirming this for me Foggy

[Michael Peoples]

There is normally a fee of about £300 for the variation but this is deducted from the pot. You should not be expected to pay up front.

[Butterfly30]

Ah brilliant, thank you.

[Butterfly30]

I was told that a letter from my parents needs to be drafted detailing how much they are offering and that the money is a gift and will be withdrawn if the offer is not excepted.
Shall I also write a letter explaining my reasons for wanting to settle early?
Not that I have a reaon really... other than the obvious. But there was talk of redundancies a few months back at work and since moving back home my parents have realised how stressful my IVA is to me, hence their offer...

[kallis3]

Hi Butterfly - unless they ask for it then I wouldn't send a letter saying why you want to finish early, just send the one off from your parents.

Sounds like a good offer to me as well.

[Michael Peoples]

It would do no harm to mention the threat of redundancies. You could then look for other less paid but more secure work if you are no longer in the IVA.