Full & Final Payment - Acceptable Figure

[lofty1979]

Hi guys, have mentioned this a couple of times on the other forums, but thought i'd throw it out here

I have 16 months left to run on my IVA and am paying £300 a month, and after this month will still owe £4800, I'm currently out of work, but haven't missed 1 payment.

I may finally speak to my Dad about this, and was wondering what sort of offer as a full and final payment would be likely to be accepted?

thanks

Liam

[Max]

I don't know if this will be of use to you or not - I do some work for the samaritans and to cut along story short a caller owed £5000 on two credit cards - the caller had £3,200 he could pay between them - I suggested he offered that to clear the debts once and for all - I must admit I was surprised but the two card companies accepted.

[kallis3]

It's not unusual for credit card companies to cut their losses and accept reduced payments.

lofty - I would speak with your IP and just see how much they think would be acceptable. I'm no expert on these sort of things, but if you offered about £3000 that might be ok, especially as you are out of work and it is in no ones best interests to let it fail.

Hopefully one of the professionals will be on to advise better about the amount you should offer.

[vanquish01]

Hi,

I'm due to be made redundant next month and made a final offer reducing the amount paid from 34p to just over 28p in the pound. All the creditors accepted. If they can see you're trying to be fair with them, then it is likely an offer would be accepted, it;s in their interests as well.

Good luck

[Michael Peoples]

It may be worth asking creditors to accept what has been paid as full and final if you cannot find another job. This would avoid having to borrow from your father and have more debt. However, if you are not working how are you able to maintain the current IVA payments?

[MRBLUESKY]

that sounds good advice to me.lofty if you can afford 2 or 3 more monthly payments why not offer them as a f&f offer what ever you decide act promptly.

[lofty1979]

I probably put this in the wrong section as i attatched it to my post in the main forum, so i'll repost it here:

Guys, on a semi related note, i asked how much i currently owed, and was quoted £4500, however in a letter dated May 2008 i had at the time, paid £7,200 into my IVA so far, and since then have paid in another £4,200 for a total of £11,400, in the same letter it said that my creditors were owed a total of £12,472.15, however in my annual report for that year, my creditors total was written down as being £18,014, so i have 2 questions:

1) is the extra £5,542 the fees my IP charge me?

2) with the amount paid so far into my IVA would I have a reasonable chance of asking for all payments made so far to be taken as a full and final settlement? (as I understand I would still pay until it was either accepted or not, which would mean at least another £600-900 being paid in if it were to take 3 months).

Thanks.

[Debtwitch]

Hi Lofty

I don't know if it's the time of day or not, but I'm struggling to follow the figures, but after making a quick calculation of total contributions you were expecting to pay (£7,200 + £4,200 + £4,500=£15,900) I think that what is actually correct is that when the IVA was proposed, liabilities to creditors totalled £18,014 and that a sum of £12,472.15 was anticipated to be the total fund distributed to creditors.

That aside, I would go back and confirm that I think Michaels suggestion to propose creditors accept payments made so far to conclude the Arrangement in light of your anticipated redundancy may be supported by creditors but that if this fails, an offer of a reduced lump sum from your father would be acceptable.

Hope this helps.

[lofty1979]

Hi angela, it must be the time of day, I'm not becoming redundant, I lost my job in december of last year, and despite that, have made all but 2 payments this year (missing payments in June and August), I am returning to full time employment on Monday coming, but looking at the figures, it seems like i'll be paying all of my original debt back and more.

[MRBLUESKY]

good luck with your new job lofty,your total fees,and dividend to creditors should be laid out in your original proposal document.

[kallis3]

Good luck from me as well.

You will never pay back more than your total debts plus the IP fees.

[lofty1979]

Ronald - sadly i don't have the original documents as they were at the marital home and didn't leave with me when i departed.

[Debtwitch]

Good news about the job Lofty.

Sometimes, sums paid into an IVA will exceed the actual debt, but the benefit to this is that the debt is repaid, legal processes stopped, interest and charges not applied since at least the date of approval and at least [some] peace of mind.

If after starting your new employment position, a revised I&E demonstrates that you are able to support the contributions into your Arrangement, I think that a F&F based on the remaining contributions less the final year's Supervisory fee (or slightly less than this because of an early conclusion) would be a reasonable offer.

Good luck with the job.

[MRBLUESKY]

lofty sound advice from debtwitch,in the meantime ring your ip and ask for a copy of your iva propoals.

[kallis3]

I was always under the impression that you would never pay back more than 100p in the pound plus your fees.