Hello
I have had an IVA for just over 16 months and am looking to rebuild my bad credit score!..... My partner will be in a position to provide me with the money to pay off the IVA (Original total 10k but have been making monthly payments of £80.00 no arrears) When I spoke to the IVA company yesterday asking for a settlement figure they seemed to be doing alot of double talk to be honest. I would like to know what is the process for getting rid of an IVA and also what sort of figure should I offer the creditors? Thank you
A "settlement figure" is a different ( and more expensive) beast to a full and final offer. It includes the full original debt, plus fees and statutory interest.
A full and final offer is based on remaining payments, so, in your case, assuming no extension for equity (if you are a home owner you might need to add 12 months)and assuming a 5 year IVA, you have 44 payments of £80 left. So £3520.
Making allowances for the administration cost, time and headaches the creditors and IP will be saving, I would try an offer of £3,000. You can always up the ante if it is refused.
You will need to confirm that these are third party funds for the purpose of a F&F only and, if the offer is refused, will be retained by the third party and not available to the IVA.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
as Foggy says you are asking the wrong question.
Your IP cannot tell you how much to offer - it's up to you to put forward an attractive offer and up to creditors to decide whether they will accept it.
The general rule of thumb is to offer them a figure close to what they would receive if the IVA continued in the normal way so the number of payments you have left x £.
