I have been in an IVA since November last year and I am struggling. I have £15,000 still owing on it but my sister said she could help me with £7,500. Do you think this amount would be accepted as full and final settlement. I have been paying £285 per month for the 10 months I have been in it. I am on my own and own my flat.
If you are struggling with your payments you should seek a full review to ensure your income and expenditure budget has been set correctly.
I recall it taking me the first year to get into the flow of living on a budget.
The best way to calculate a f&f offer is to multiply monthly payment by number of months left - then minus a little for early payment. So by my calculations if it is a five iva you have
50 months left x £285 = 14250
I would suggest an offer around £12,000 is more attractive
If you have equity in your flat were you expected to release some during the latter stages of your iva ? If so this needs to be taken into account as well.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
I wonder like Luluj asks if your income and expenditure is set correctly, it will soon be review time so worth looking that you're claiming all the allowances you are entitled to.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
You need to understand why you are struggling so early into the IVA. Either there was a problem with the original calculations or you are overspending on non-essential items.
I would check this first.
If you wanted to put forward an F&F given there is so long to go I would probably offer c£10k.
From your sisters point of view however this money is to be classed as a gift. Obviously what you decide off the record once the IVA is complete is entirely for you to decide however she would not legally be able to pursue you for repayment and there is a lot of money at stake here.
Would suggest you perhaps consider riding it out a bit longer and then maybe reconsidering a bit further down the line when there is a lower sum.
Speak to your IP about the I&E and look at your expenditure carefully to see why your are struggling.
Your credit rating will still be shot until at least November 2021 even if you complete early.
