Possible early settlement?

[Halo]

Hi everyone, top site with loads of very useful information, glad I found it as without like minded people one can feel very much isolated and somewhat overwhelmed by all the IVA/Creditors jargon and power.

Well, years ago I stood up to my creditors and took out an IVA to sort out my debts which were brought on by massive bank charges and interest that were added to my loans & credit cards. Like many people I couldn't keep up payments, got threatening letters/phone calls and eventually couldn't get anymore credit to keep up the payments to cover previous credit. Total unsecured debt by July 2005 was £24k

I sought advice from an insolvency agency and had a meeting with a chap from PP in August 2005, I was told that an IVA was the only option to avoid BR, and also the only way to stop all the phone calls & letters. As I was looking to get out of the mess, I agreed (maybe mis-sold an IVA?) and we had a creditors meeting in October 2005, by then the debts with yet more interest had risen to £28k. [:(!]

It was agreed that I paid 30p in the £ for 5 years (18k) with no 4th year clause as I don't own a property, so fairly simple. After 24 months it rose to 35p where it has been for the passed 7 months, I am now 31 months in and have 29 left and have paid the following:

£300 X 24 = £7,200
£350 X 7 = £2,450
Total = £9,650
Remaining = £8,350?

Now, my mother has inherited some money and has offered to pay it off for me, but I am unsure how much is remaining because it is either £8,350 or £10,150 (29 x £350).

How much would be a reasonable amount to offer as I am guessing between £7k - £9k? Also, she is happy to write a letter stipulating that she can pay the money, and that I will sort out a formal agreement to pay her back, but she is not happy about offering bank details or anything regarding her finacial situation as that is her private business.

Would be great to get all this sorted out soon so that I can move on with my life and hopefully save up to get a mortgage with my wife in a few years time (when the 6 years are up).

Thanks in advance for you help. [:)]

[Viki.W]

Hey Halo, welcome to the forum, you are right, this is a great place for advice and support. An expert should be along shortly to advise you. Viki X

[Halo]

Hi there Viki and thanks for the welcome!

[Viki.W]

It's a tricky one...offering to settle with a lump sum. My understanding is that you need to offer what your creditors would have got if it was to continue to the end, and there should be a reasonable reason on why you want to conclude early. An expert will help shortly. Viki X

[MelanieGiles]

The figure of £9k seems about right, so I would contact your IP now without further ado to see what they can suggest ought to be offered. Won't it be great not to have the millstone around your neck for much longer!

[Halo]

Thank you very much for your response Melanie, very much appreciated!

I will get in contact and report back.