Iv paid £2150 of a £25k debt. I want to make an offer to pay off early If the agreement ran its fill course, i'd be paying back £12k approx. what would be an offer that generally creditors accept? E.g would £15 k get accepted, or should i start with a lower or higher offer?
Its also highly noticeable that my IVA company im with have gone very 'cold and offish ' whilst i have been trying to get info from them re early settlement. Are they paid their fees at the end ? Are Iva staff sales trained in keeping agreements running their full course?
Iv paid £2150 of a £25k debt. I want to make an offer to pay off early If the agreement ran its fill course, i'd be paying back £12k approx. what would be an offer that generally creditors accept? E.g would £15 k get accepted, or should i start with a lower or higher offer?
Its also highly noticeable that my IVA company im with have gone very 'cold and offish ' whilst i have been trying to get info from them re early settlement. Are they paid their fees at the end ? Are Iva staff sales trained in keeping agreements running their full course?
Hi Lottie if I understand you correctly you were due to pay back £12k but have paid back c£2k to date leaving c£10k o/s. If you are making a full and final settlement offer first of all I presume the funds are coming from third partis? Second of all you can make an offer lower that the amount outstanding. This takes into account the fact that creditors are being paid sooner and the Administraiton costs are reduced. The Supervisors fees will be paid from the settlement monies. It is not for them to decide whether the offer is accepted - this is voted on by the creditors. This should not be an issue for a reputable IP firm.
Hi Lottie. There are different terms here -- if you use the term "Settlement" it means they have to calculate the amount required to pay back the full debt, plus fees and also possible statutory interest. A "Full and Final Offer" is an offer to pay back as much as is affordable in a lump sum to bring the IVA to an end. The starting point for this is usually the number of months remaining multiplied by your monthly payment. This gives everyone what they signed up for, causes less work and costs less to administer, so every one is a winner -- the IP still gets the agreed fees.
Many people make smaller offers, depending on their circumstances --- if anything is threatening the IVA ( ill health, job loss, etc.) The bigger the "threat" the lower the offer might need to be.
By making low offers you are, of course, beginning to gamble that it will be accepted. I have seen low offers go through, but I have also seen high offers refused !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Usually creditors will accept a slight discount to what would be paid over the term. The IP firm is paid on realisations so early closure means less work for the same money.
