early settlement

[Red]

Hi All,

I've been in an IVA for just under 2 years. I originally had debts of around £75,000 and am to pay back £46,000 to my creditors. To date i have paid just over £16,000, so I currently have just under £30,000 to pay back.

A family member is considering giving me £30,000 solely to end my IVA early. Would this be a reasonable offer to make to my creditors or would they expect more based on the original debt?

Thanks

[kallis3]

I am sure your creditors would snatch your hand off if you offered the full £30,000!

They certainly won't ask for more, and you could probably get away with offering slightly less.

Just make sure that you tell your IP that the money is only available as a full and final offer.

One of the professionals can probably advise how much they think you should offer.

[Michael Peoples]

Provided the money is being offered specifically for early closure it seems more than generous. Given the reduction in timescale the fees charged may be less so the dividend could actually improve. There would be other factors to be taken into account such as equity in property, sharesave schemes and bonuses but provided there is nothing material there I see no reason for rejection. Good luck.

[MelanieGiles]

Seems a very good offer - but your own IP will give best advice on this as he/she has detailed knowledge of your case.