Full and Final Settlement?

[munchkin77]

Hi All

Sorry this may have been posted a million times but i cant find any details.

I am proposing an IVA at present and it stands at about 43p in the pound. I have debts of £50k and am offering £630 per month at present.

Anyway at the end of this year we are planning on moving to the middle east.With our professions (mostly my partners) we are expecting a tax free monthly salary of between £5000 - £7000 a month.Obviously at this point we will be able to pay back a large proportion of my debts much easier.

Anyway if we are in this position we will have a much larger dispoable income. Will i end up making pyamnets over the 60 months that will well exceed my £50k original debt or could i perhaps offer a final payment?

How are final payments agreed? Do i take 50k minus what i have paid and offer the difference or do i make a reasonable offer?

Any advice welcome. The move is roughly planned for late this year but could be a bit longer dependant on my partners job. The debt is solely in my name so the IVA wll also be in my name.

[Adam Davies]

Hi
You can continue to make increased payments until your original debt is paid plus your IP fees,or you could look to offer a full and final equvelent to your remaing payments less a saving in IP fees.
By the way your IP fees seem very high at 16k,I am sure that these will be reduced down at your creditors meeting.
Are you using Clearstart ?
Regards

[munchkin77]

Hi

The move to the middle east is to clear the debts asap so would prefer the option of a full and final as the move is also to improve our quality of living as well.

I feel awful as the debts are mine but my partner has become accountable for them also.

The fees are £12k. I am using blair endersby. Only got the proposal yesterday. Think payments will increase as well as underestimated partners income (i honestly did not know his take home as my wages were used to pay creditcards and he kept his to himself and paid all house hold bills so it was not until i asked for his last 3 months payslips i found i had underestimated by £200... however we agreed if the payments went up it would still be fine as it would be better than what i pay out now.

[Adam Davies]

Hi 43p dividend of 50k is 21.5k,60 payments of £630 is 37.8k,the difference[IP fees]therefore is 16.3k,not 12k.Have you included the nominee fees in the 12k quoted ?
Regards

[Adam Davies]

Hi
As a matter of interest had this been a TIX compliant IVA the fees would be around 8k
Regards

[munchkin77]

Sorry Andy you are indeed correct i have just had a second look at my proposal as sending it tonight and it is indeed 16k worth of fees... I know i may be asking the million dollar question but say in a yearafter making 12payments of 630 per month what would be a reasonable figure to offer as full and final settlement? Sorry i am just trying to sort my head out... I want this to be a benefit for my creditors as i got myself into this stupid mess but i also want to move to the middle east as use it as much as a fresh start as anything... i may be living in lala land but if i can clear it sooner then fantastic.

[Adam Davies]

Hi
If your fees stay as they are you will need a figure of about 22k after one year.
The fees quoted are hideous and are double that of many other IVAs with similar figures.I hope,for the good of the industry,that Blair Endersby fees are greatly reduced.
Regards

[munchkin77]

Yes the figures do seem exceptionally high and of course will impact on other companies and of course greatly on the creditors as from the 51k i owe the creditors will only get approx 27k which seems ridicuolous.... I also hope that the fees will be reduced.

Thanks for the approx figure... helps with my thoughts on settling early.

[Adam Davies]

Hi
Don't be afraid to look at other providers, before sending back your signed proposal,to get a second and third opinion.
Be aware that creditors can insist on no variation to the IVA within the first two years.If you are reasonably sure of your job change you may be better to consider a debt management plan as a short term solution as you may be able to service your debts in full once you move.
Regards

[rachellxx39]

Hi we owed £60 between us . Our ivas agreed in jan 2008.Our ip fees were no way near £16k ! They were £7050 for both of us .Clearstart did however reduce their fees.