I have been in an Iva since June last year and my debts totalled £32,000 I pay £450 per month into the iva. I have just made a full and final settlement offer of £15,000 which would equal around 46p/£, what are the chances of this realistically being accepted?
It will depend on a number of factors.
A f&f offer should be as close to the original agreed p in £ over the term of the Iva. So based on what you have said it would be £450 x 45 mths = £20250 roughly.
Creditors may sccept your lower offer as a way of getting their money sooner.
You will need to give them a reason for a f&f and an explanation of where the money has come from to make this offer ....
Hopefully they will agree for you
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Hi Kelly. It is always difficult to advise on reasonable offers. As Luluj says above, they are usually based on what the creditor would expect to get over the term.
Small reductions can be made for the fact they are getting the money early, larger reductions depending upon circumstances (ill health etc).
But, creditors are unpredictable and I have seen them accept very low offers as well as refuse offers higher that the proposed dividend ! Much will depend upon their in house policies at the time and which vary according to business needs.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
