Hello everyone, this is my first time visiting an Iva forum and I was wondering if anyone could please help me with a query I have regarding full and final settlement. I have a 6 year Iva term which I believe will become 7 years if I am unable to remortgage. I've so far paid 3 years (36 months) at £140 and have recently been very kindly offered money to help me to pay off the Iva by my parents. I am conscious of them only gifting me what is nessecary to avoid loss to them, and so my question is how much should we offer? I've worked out that 36 more payments plus an additional 12 so to include the equity clause would amount to £6,720 is this the amount that has to be offered to be accepted? Thank you in advance for your help.
It's possible - when you make the offer make sure that the money is only available for the purposes of the f&f offer and state that the amount will be reduced for every month that a normal payment is made.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
You could offer this amount - make sure that your IP knows that the money is only available for the full and final.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Get an up to date valuation and mortgage statement to ensure there is equity and an extension would happen before you factor this in. If this is the case try £6k as creditors like money early and if there would be no extension £5k would be the max I would offer.
You also want to ensure that the offer reduces by each subsequent payment as some firms are slow at preparing variations so you do not want to overpay.
I agree with Michael ... make sure that there is likely to be equity before offering to cover the extra 12 months. If there is the extension to factor in I would say £6k is a generous offer.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thank you all for your replys, they have been very helpful and I will definitely look into valuation to make sure I'm only offering the extra 12 months if there is in fact equity due. Great advice thank you [:)]
Hi Annette - I agree with the others. Firstly check your equity position. If applicable then your calculations are correct at £6,720 and I would offer c£6k due to savings on 4 years administration costs and allowance for extra contributions made by the time the variation meeting is called, held and payment made. If you can prove it doesn't apply as minimum equity then contributions would be c£5040 and I would offer £4.5k.
All good advice above and hope the replies assist you in making an informed decision. All the best with your offer and be nice if you let us know what you decide and the outcome as it does help other posters.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
