Full and Final Settlement

[daveb]

I have been offered a lump sum of £11500 from a third party to complete my IVA.

I have 3 years remaining in my IVA making monthly payments of £440(36 x £440) = £15840

Would anyone be able to give me an idea if this could be acceptable from a creditors point of view, with the savings in IP fees etc.?

Thanks

[MelanieGiles]

Hi Dave

I would think that it is a little light - and that perhaps £13,500 would be more appropriate, but check with your IP to see what they think.

Is there any reason why you need to settle early?

[daveb]

The reason I need to end early, is because I need to find alternative accomodation. This will result in less disposable income each month, and therefore a possible reduction in my IVA contributions.

Therefore my realistic contributions over the next three years are likely to be 36 x £340 = £12,240

Will this information be enough for my IP to go to my creditors?

[plasticdaft]

I would make sure your Ip understands that your alternate accomodation will cost more and leave less for creditors,it may just be enough to convince them to accept the F&F though it is far from certain.

[MelanieGiles]

If you are having to consider reducing your payments in any case, then a lower offer may well work for you.

[daveb]

I am worried that this may not be accepted, as I have read a clause in my agreement stating that failure to repay a certain dividend to creditors will result in a failed IVA.

Would my IP be able to give me the offer needed to complete the IVA based on the dividend required? Because they seem very wary about helping with suggested offers??

[MelanieGiles]

The variation will deal with the guaranteed dividend issue. Why not ask them to work out a settlement figure for you based on that dividend figure, so that you could see if you could raise that sort of money.