full and final advice please ?

[fluffy16]

I'm 30 months into my iva and have 12 month extension clause the amount i originally owed was £19520.00, i now owe roughly 15000.00.

when i started the iva my original surplus income in the 1st year was £111.00 per month, my surplus is now £163 per month.

A family member is has suggested they may give me the money to make a a full and final payment if they could i just wondered what a realistic offer would and how you go about proposing it ?

[Foggy]

The creditors are expecting to get at least a further £6846 if the arrangement goes to term, so any offer should be based on this amount. I would suggest £6k.

All you need to is write to them offering the amount as full and final payment of the arrangement. Stress that it is coming from third party funding and is only available for a F&F. If the offer is rejected the donor will retain the money and it will not be available to the creditors and the IVA will continue on its original course.

They will want a letter from the donor and possibly bank statements to show the source of the funds.

[fluffy16]

i forgot to mention i had aplot of land when i started my iva for which there was a clause specifying i had to put it on the market within 3 months which i did and i sold it for 100000 why would this not be taken from the debt ?

[Foggy]

During an IVA you always owe the full original debt, plus fees and statutory interest. The IVA will cease it you hit this figure early. Only at the end of the IVA does anything unpaid get written off.

Was the sum of £19250 mentioned above your FULL debt or the amount due in IVA payments ?

[fluffy16]

£19250 was the amount i owed over 3 credit cards and 1 bank loan when i when i entered the iva, i think i'm looking at my my statement incorrectly (it's very difficult to make sense of) i think the £15000 may actually be what i have paid in ?

[Foggy]

So -- you sold the land for £100k ( or was that a typo ? ) What happened to the sale proceeds ? They would have more than covered your debt without the need for the IVA !!

[fluffy16]

sorry yes that was a typo i sold the land for approx £10,000 which went into my iva

[fluffy16]

so i'm guessing a final settlement figure would still be around the 6k mark ?

[Foggy]

Well -- to hit the full settlement figure you would need to pay in around £30k. If you have paid in around £15k the IVA will go to term before you hit the £30k ... so, yes, I would imagine an offer of £6k would still be the mark.

[Lisa Thomas]

my understanding is you you have about 42 payments left at £163 = c£7,000?

If correct this is the figure to use as a starting point. £6k seems reasonable.