How do I calculate how much I could offer as a F&F settlement ?

[Juliedh8]

Hi - I have an iva which is for 6 years, I started in March 2015 and pay £145 per month. How do I calculate how much I could try and offer as a full and final settlement, is it literally just how ever many months remaining x £145 or are there other aspects that need to be considered in a settlement offer? Many thanks for any help in advance.

[Foggy]

Yes: Months remaining x the monthly amount. Plus 12 months if you have equity. You can make a small reduction for "early" payment to reflect the savings they will make in admin costs, but not much.

[Lisa Thomas]

So you have either c42 months @ £145 = £6,090 or 54 months @ £145 = c£7,830 if you have the standard equity clause and it have the applicable amount of equitable interest in the property.

If you were able to offer third party funds to make a settlement say £5k or £6.5k then please note although your IVA will finish early and you will take control of your finances early your credit rating will still be shot until 2021.

[Juliedh8]

Thanks Foggy - Lisa - please can you let me know how you calculate at 42 months - I would have thought it would be 56 left? Appreciate your help!
Julie

[Lisa Thomas]

Hi Julie

I presumed you had a standard 60 month (5 year) IVA and c18 months had passed since you started in March 2015.

If the extension applies then it will be 72 months less the 18 months leaving the 54 months.

[Lisa Thomas]

The key is whether you have the relevant amount of equitable interest in any property.