Reasonable final settlement offer ?

[DdD52]

Hello,
I am currently on an iva and i am paying 410 and my debts were under £60000. i am now coming up to 1 year and i will like to make a final settlement figure .Can you advice me whats a reasonable figure to offer

[Shining]

Hi and welcome to the forum, I would say talk to your IP initially. Are you struggling in your IVA which is why you want to offer a F&F or do you have a relative willing to lend the funds?

Basically I think as near the original dividend.

[Lisa2009]

Lesley is right, you will need to offer as close to the original promised dividend as possible for a better chance of it being accepted.

Obviously the questions will then be asked as to why you want to settle early and where the money will be coming from.

[Adam Davies]

Hi
17K would be a ball park figure if there is no equity to release
Regards

[Tina Shortland]

Hi DdD52, your IP is the best person to advise you on a realistic figure as they will know details of your overall case. Tell your IP what funds you could offer and see what they say. Depending on your circumstances they may accept less than £17k as you have already paid the first year off. Be clear what would happen to any remaining monthly disposable income if there is any as creditors may question why you could not pay more off. Sometimes families lend a lump sum to finish an IVa early but on the condition that the monthly DI goes to them to offset the lump sum offered.

Let us know how you get on.

Regards,

[MelanieGiles]

Assuming that your IVA is to run over five years, and that you have already paid in for one, this leaves 48 payments remaining at £410 which is equal to £19,680 - so a figure of £19,500 may be more acceptable so that creditors get the same return as they originally anticipated and agreed to.

If your circumstances have changed, to the extent that you cannot maintain payments at at least £350 (current payment less 15% IP discretion) then a lower sum may be offered and accepted. At the end of the day why do you want to settle early?

[DdD52]

The reason for proposing a final settlement figure is because my circumstances have change a bit and i will be allow to pay 240 per month.

[MelanieGiles]

I've answered this on your other post - but if you can genuinely show that your disposable income is now reduced to £240, then an offer of £11k may be deemed to be reasonable.

What has happened to reduce your DI so much?

[DdD52]

The reaon for it reducing to 240 was due to me having to pay child care for my son very recently.

[DdD52]

I have a property and i am wondering if they will put me bankrupt of my situation

[kallis3]

It is unlikely that your creditors will make you bankrupt, if the IVA failed you would just be back to square one.

Do you have any equity in your property?