Hi! We have 18 months left on our IVA, and a relative has offered to pay off the remaining amount of the IVA. My question is how do we work out what kind of sum to offer as a full and final settlement? The original debt was £46000 reduced to £19000 with IVA and we were paying £330 pm, this was reduced to £130 pm as I left my job. We probably will not have any equity to release from our home so would not be able to remortgage. Any advise would be gratefully received.
You would be looking at a figure of 18 x 130 (you will need to prove no equity, or add a further 12 months payments in lieu). As the creditors have already taken a hit by reducing your payments, I wouldn't try to offer much less --- but that is just my personal feeling.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Payments left = £2,340 if further 12 month extension for equity then increased by £1,560 to £3,900. If you have no equity then I would suggest a settlement offer of say £1,500 to settle early.