Full and final

[fionaj]

Hello
I have been in an IVA since Feb. Total debts 39,000. Paying approx 22,000 to creditors and 8,000 to IP. Paying £500 a month - so 53p in the pound. My parents are in a position to offer me £18,000. Would this be a reasonable offer as a full and final.
I have no assets and no clauses to say I cannot vary in the first year.
Please can anyone advise. Thankyou so much [:)]

[MelanieGiles]

Hi again fiona

Your offer is unlikely to tempt creditors, as I assume that you would have been paying an overall sum of £30,000 to your IVA over a 5 year period. If the offer could be improved, but do check to see whether you have the ability to early settle within the first 24 months. Some creditors have been modifying this provision in recently.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Adam Davies]

Hi
I don,t think that you are a million miles out.
You have paid 3k so far,this will cover the IPs nominee fees.So if you can find about 23k then you should have it accepted.
As Melanie states do check for the no variation in first two years clause and if you don,t have this then give it a go.
I guarante that your IP will not be keen but they must propose it.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

But they don't have to recommend it Andy - this poster has only been in her IVA for less than one year and should at least be prepared to offer the dividend which was originally pledged. There will be some savings in costs, but I still don't feel that £18,000 would be acceptable, especially if there have been no mitigating changes in circumstances.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Adam Davies]

Hi
Your right but I just feel that creditors seem keen to get their money early.The IP should recommend 23k Melanie because it will return the original dividend,four years early,and at the end of the day it is all about repaying as much as possible as soon as possible,from a creditors point of view.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[fionaj]

Thanks for your replies. If I left it until next February, and then offered say 21k (if parents can offer this) would this be reasonable?
Many thanks

[Adam Davies]

Hi
Yes that is reasonable.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

Yes Andy - I agree that £23k would make a reasonable return. Sorry, probably missed the spirit of your earlier quote!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Magic]

what a fantastic way to get this advice
I will remember all of it
many thanks