Is this a realistic full and final offer ?

[LAJ]

I am in year one of a five year IVA. I am considering offering full and final towards the end of the first year. Do i deduct the number of monthly IVA payments, bonus, overtime paid to the IP from the total payable over 72 months. The total payable over 72 months is circa £10K, I would have paid around £4K after in the first year (monthly payment, bonus, overtime, council tax)do you think full and final of £5K is realistic ??

[Foggy]

Hi. You need to base a full and final on what the creditors are expecting over the term. As it stands, they will expect the number of remaining payments multiplied by the monthly amount.

[plasticdaft]

If you've paid 4k in a year they wont accept 5k as a full and final. If they let it run would you not pay roughly 4k a year for 6 years??

Paul

[bobbydavro]

Hi

Your sums dont see to add up. You sure you got these right? If you have paid £4 in first year why would the creditors accept £5k for closure after only 1 year term?

[Foggy]

The £4k paid includes extra payments, which might not be repeated over the term.