Settlement advice needed

[flaminskint]

Please could someone advise re making an F&F Settlement Offer. I’m with G.P and I’ve rounded number’s to make reading a little easier.

I’ve been in my IVA now for 2.5 years and started with a total debt of £18,000.
On being accepted, it was predicted that my creditors would receive £12,000 at the end of the 5 years.
Following my 2nd annual review it was predicted that my creditors would receive £15,000 on completion of the IVA (increase in wages – increase in contributions).

To date I have paid in around £9500 (some of this coming from accrued overtime).

I am currently paying in £300 per month with approximately 30 months of contributions left to pay. I am not expecting any further increase in my wages or any additional monies / overtime. My job however is secure.

My parents are going to be taking out a loan for some home improvements and have offered to loan additional money to give to myself to settle my IVA. Is this possible first of all? And secondly would an offer of around £9000 (30 x £300) likely to be accepted? Finally, what is the process of making an offer / settling the IVA early?

Any advice is much appreciated.

[Shining]

Hi and welcome to the forum. I feel that that is a very good offer. You would need to speak with your IP and tell them your parents are willing to make this offer in respect of a F&F settlement and the money is only available for this purpose.

Bearing in mind that the meeting takes a little time to set up, payments can continue whilst this is prepared and for that purpose it may be advisable to offer a little less.

However, having said this, I'm not an expert so do hang in there for an expert opinion.

All the best with your offer.

[Radish]

I tried this myself during what is now my last year. I was told they would accept the payment (last 6 months in one lump sum via a loan off my parents),which would have wrapped it up 6 months early. But told me they IVA end date would still be the original date. Although I would not have to pay my monthly amount (£290 in my case) during the last few months. I would still be liable to pay overtime via the 10/50/50 till the end of the IVA to the original date. I found this unacceptable so just carrying on paying as per original plan. But that was 6 months early, not 3 years early so you never know. But it made the whole idea pointless. Maybe I never worded the letter correctly. May try again.

[Foggy]

Radish -- what they were trying in your case was simply to pre-pay the last 6 payments, not a Full and Final. At 6 months to go and full and final would taking around 3 or 4 months to go through, ending the IVA 2 or 3 months early and costing £500 for a variation meeting -- doesn't make economic sense.

[Pennyless]

Flamingsking I'd look at the overall costs to your parents of borrowing £9000 against that of your continuing IVA payments.....after all your IVA is "interest free". Differant story if they had the money in savings etc but getting a loan to pay off your IVA at the moment may cost you more in the longterm or at least it will your parents.

[Michael Peoples]

Good advice from Pennyless. Try a figure of £5-6k and if that is rejected you could continue on with the payments as they are.

[flaminskint]

Thank you all for your advice, much appreciate it. I hear what your saying about interest, however incorporated into a loan my parents are taking anyway it would bring payments down at least half, and they are willing to pay which I am obviously most grateful for.

One of the main reason’s I wish to be shot of it is so that I know my money is my own really. I have a burning ambition to start my own business, earn a little extra for myself, and I have no way of saving to even think about starting anything up let alone any profit made being free to invest / keep for myself.

Radish, I don’t quite understand how you could be still liable to pay overtime? Surely a Full and FINAL SETTLEMENT is exactly that? Can’t see how they could work out a percentage when if your no longer paying in contributions, your disposable income would obviously differ? Would your IP then require you to continually update regarding new outgoings / change in salary and or circumstances? Any advice on this would be a big help?

Finally are there any posts on this site that offer a step by step guide on how to go about offering a full and final settlement and the process that it involves?