I have £4,400 left on my iva. I am in a position to make a settlement offer and was wondering what percentage of the total amount oweing, I should make as an offer.
If your circumstances are still the same you would need to offer as near as possible to what creditors would get. They will normally accept a little discount as they get their money early so I would think £3,500 would be a reasonable offer. If your surplus has dropped you could reduce the offer accordingly.
A lot will also depend upon what time period that £4.4k is over, as they will also save i admin costs if it is over a protracted period. Conversely, if it is a short period, bearing in mind that a variation often takes three months the savings would be minimal and an offer might actually cost them more than they save.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi Darren. It will take a couple of months for the variation meeting to be called and held by which time the balance would have reduced as you will continue to pay your contributions in the meantime. Difficult to say as I don't know what your monthly payments are but Michael's suggestion of c£3.5k sounds good.
