full and final settlement

[jc1180]

hi - what kind of figure could i look at for full and final settlement - i want to be able to make a realistic offer and friends/family may be able to help me. my iva is £368 per month. original debt was 65k - i live in shared ownership so they put an extra 6 months on my iva meaning i have to pay 66 payments of £368 (total = £24288). There is a 4 year clause which says any equity above £2208 should be paid into the arrangement - bbut because its shared ownership i am already paying an extra 6 payments and i can't see there being much equity anyway. (started oct 06 so am half way through). I have a modification that says there could be no amendments etc for first two years thats why i am starting to look at this now. My IVA agency are quite helpful but i need a figure in my head so i can make sure they aren't over stating the figure when i approach them. I really really would love to end this as it is a real struggle. Any advice grateful - please ask if i am not giving all the info you may need to advise me on this. I am guessing 30 months left x £368 per month = £11040
Do you think a reasonable offer would be £10.5k
Any help gratefully received...

[kallis3]

Hi,

I'm no expert on Full and Finals, but that sounds like a decent offer to me.

One of the professionals will be able to advise further.

Run it past your IP and see what he says.

[jc1180]

thank you - i hope someone gives me some advice....

[?]

[Adam Davies]

Hi
That sounds a very reasonable offer and will surely be acceptable to your creditors.
Have a word with your IP and ask them to put variation meeting forward to your creditors.
Good luck
Regards

[David Mond]

I would suggest £9,750 to £10,000 should be acceptable. Have a word with your IP and let us know. Good luck.

[MelanieGiles]

I agree that an offer of around £10k ought to be accepted. Where will you be getting the money from as a matter of interest?

[jc1180]

Hi - my mom and dad have offered to help me to clear this as full and final settlement - i will then have to pay them back but at least this noose is from around my neck...thank you all for your advice - much appreciated - will keep you updated. thanks

[MelanieGiles]

Good luck and let us know how you get on.

[kallis3]

Good luck from me as well.

[David Mond]

Great jc1180 - go for it and let us know how you get on.

[jc1180]

Hi

Can someonel help me understand the process and time lines that a final settlement may take. If i make the final settlement offer to my IVA practioners, what happens then? How long does it take to find out if its been agreed? Then how long from when i have paid for my creditors to close my file as settled and remove the lodge against my property (that stops me from selling without them being involved)
I have never had to do this before so need advice on how long this all takes and then finally how long for my credit file to be repaired. Thanks

[David Mond]

1. Agree figure with your IP
2, Ask IP when can he draft the Variation.
3. Agree wording of Variation with IP
4. IP gives 17 days Notice
5. Arrange for settlement monies to be with IP
6. Meeting held
7. Certyificate of Completion.

Can all be done within 3 to 4 weeks

Offer £9k

See what your IP says.

[kallis3]

Don't forget that even if your full and final is accepted, the IVA won't drop off your credit record until 6 years after it was originally accepted, so even if you sell your place, you might find it difficult to get another mortgage straight away.

You will need to check with all three CRA's to make sure there are no defaults registered after the date of the IVA. If there are, then you have to write to the creditors and demand that they remove them as they cannot default after the acceptance date.

[jc1180]

fabulous thank you so much for your advice really helpful x

[jc1180]

hi - me again sorry - i have read lots of things on here about 4 year equity release - as i mentioned earlier i have this clause - will this affect my Full and final settlement offer?? thanks