Is my full and final settlement likely to be accepted?
I am about half way through a 5 year Iva. I pay £190 a month with approximately £5500 left. My mother has offered £4500 as a f and f. This would mean instead of 22p in the pound they would get 16p. I have sent my forms back to my IP so this will now get sent to my creditors to arrange a variation meeting. I'm really worried it will be rejected. I have met all my payments and also paid in an extra £100 in overtime and approx £3300 in PPI. My circumstances are that I am self employed so not as stable as PAYE. Do you think mine is a reasonable offer?
It's a reasonable offer that the IP should be able to put forward for you. However, bearing in mind your payment history and the fact you have actually paid additional income you should be prepared for the likelihood of it being rejected as the creditors will ultimately choose to go with the option that gets them the most money. it is generally advised that if a client can afford to sustain payments a full and final offer of less than the amount they would get if the plan continued does not have a high chance of success. That doesn't mean it definitely wont be accepted just that you should not be surprised if it isn't.
Yes my mother has stated the money is to be used only for a full and final settlement and no other reason.
My IP has stated that as I am self employed my income is subject to change and although currently I have maintained payments there is always the possibility I could not maintain them in the future. This way the creditors are getting their money now. I do not have a property so no equity clauses.
