I do not agree with my IP's calculation of F&F offer amount

[dan]

I want to make a full and finial settlement. my iva level is £5400. I started in the agreement by making payments of £90 and has now increased to £268.50. the iva have told me that I have to calculate my payment by the number of months, I did this and it bought me to nearly £12k this is way more than my debt and I think £3/4k should be a good enough offer, all the advice in the world welcome,

Thanks

[Foggy]

You need to tempt the creditors to agree to accept ----- this is done by offering near what they would get if you carried on in the IVA, which is the number of months remaining ( plus 12 if you own your home) multiplied by the current monthly payment.

[kallis3]

Don't forget you will always owe 100% of your debt plus fees

[dan]

You need to tempt the creditors to agree to accept ----- this is done by offering near what they would get if you carried on in the IVA, which is the number of months remaining ( plus 12 if you own your home) multiplied by the current monthly payment.

Hi foggy thanks for the response. My issue is that my debt was only £5400 ive paid nearly £2k in already, and because i had a pay increase my payments have increase so if i were to do that calculation the amount would be 12k do i really need to pay more than i owe. i have no property and no assests.

[Foggy]

Your IVA will stop when you hit the total of full debt plus fees and statutory interest. On a £5400 debt this would be around £2,500 fees and disbursements and around £430 per year interest.

How long have you been in the IVA ?

Working on 2 years just for illustration -- to clear the lot would take about £8760 --- less the £2000 you have already paid in would leave £6760 tp pay / offer

[dan]

so and offer of £4000 is likely to be declined?

[kallis3]

You can only ask.

[dan]

thanks kalis

[Foggy]

so and offer of £4000 is likely to be declined?

Depends on what sort of time you are knocking off the clock as you will be saving them administration costs, so you can round it down a little.

[dan]

Hi foggy so ive only just started the second year on my iva I'm 17months in

[Foggy]

Hi foggy so ive only just started the second year on my iva I'm 17months in

OK -- considering that you will be making a couple of more payments while the offer is prepared, the interest element will be a trifle lower, you might get away with £4k. Certainly worth a try.

[dan]

Thank you very much foggy its been very helpful talking to you

[Foggy]

Thank you very much foggy its been very helpful talking to you

You are welcome.

Good luck with the offer.

[Lisa Thomas]

Make sure you ask the right question as 'settlement' figure and full and final are two completely different things!

See video here for some basics:

https://youtu.be/h4dozq9aGak

[kallis3]

You need to offer it as a full and final offer.