Hi, I'm just looking for a little bit of info concerning full and final settlement offers to see if it would be a viable option-(totally hypothetical at this stage as not discussed getting help from family or friends or if they could help)
I am currently in my 3rd year of my IVA, 34 repayments left (I think) and am paying £600per month (to include arrears of about £750), I am maintaining my payments with no issues and I have no change in my circumstances but I guess like anyone if it was an option to finish my IVA early I would consider it as it would give me more freedom to make choices in life, for example I would like to give up my part time job which currently only brings home £160 per month but whilst I'm in the IVA I feel I can't do this and as I am now 34 my biological clock is ticking away and I may want to start a family before the end of my IVA, obviously doing so in the IVA would lead to problems with reduced pay/hours and maternity etc and seems almost impossible. So, what would realistically be an offer that could be put forward to end my IVA now, I appreciate my remaining payments would be £20,600 but is that realistically the minimum that would be considered?
Also do you have to state reasons for wanting to end IVA early (as above) and would reasons above be acceptable (and/or acceptable reasons to offer an amount below remaining payments-ie plan to leave 2nd job or reduced disposable income due to family?
Thanks in advance for any info, be interested to hear opinions on this.
Also meant to add there is unlikely to be any equity in my house at the end of year 5 (unless something drastic happens in housing market) at proposal I was in negative equity at forced sale value.
Firstly dont put of trying for a baby .. your iva should not stop you moving on in life. And it may take some time to full pregnant!
A f&f offer should be based on a close figure of what you originally agreed. So as close to the £20k that you mention.
You would have to provide reasons for finishing early and make it very clear that should f&f not be accepted the money would not be available to you.
Hope things work out for you
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
I agree with luluj. Many an IVA has to cope with baby coming along. It isn't the end of the world and there are workarounds.
Having the monkey off your back is a perfectly sound reason for wanting to end an IVA early. Remember that the creditors would also benefit from having the money in a lump and early to boot. They will also be saving on administration fees ( as will your IP). So .... you could try a small reduction on the £20k.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks foggy and lulu for your replies, sadly whilst in an IVA I don't think I could start a family and risk the IVA. Unfortunately I don't think anyone would be in a position to help me out to th tune of £20k to end my IVA early anyway so looks like I'll just have to stick with it, maybe in 6 months I should think about it when I only have 28 payments left which would be around £16,800 then perhaps £15,000 of an offer may be considered (but that's only if someone can help me to that tune also-not talking small figures really are we!) £15,000 is probably the maximum someone could realistically help with but not £20,000 and I don't suppose they would consider such a reduction at this stage without any mitigating factors-or job loss etc.
There is nothing to stop you considering a £15k offer.
It normally takes 3 months to get an offer in plus if you factor the time in linked to getting the funds together it probably is a realistic offer.
Also one of the IP's that contribute to the board routinely suggest putting in a lower offer.
A lot comes down to who you are with, what seems reasonable and generally how attractive the offer looks.
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.
Thanks for the advice, I fear as low as £15,000 wouldn't be accepted but I have contacted my IP to ask her out of interest at this stage in my IVA what would be viable, it's only hypothetical anyway as no idea if anyone could help out!
Thanks again
Hi Lisa at the end of the day it's up to the creditors to decide if they want to accept a bit less and call it a day or slog it out for 3 more years in the hope that your income position doesn't change meaning you may have to reduce the payments you make anyway. Also there wil be savings on admin costs and you will pay a few more payments while the variaiton meeting is called and dealt with. £15k is a reasonable offer in my view. If I was a creditor I would snatch and run!
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.
Thanks lifenoteasy and Lisa for your replies, £15,000 would probably be a more realistic figure for me to ask for help with from friend/family and I potentially do think it could be a fair offer as you say Lisa if my circumstances were to change and my payment would need to reduce anyway but I suppose they may also think my situation could improve (promotion/pay increases etc) although if I really did want to start a family i do think it would impact on my IVA payment as I would certainly need to give up my 2nd job (which I would like to do anyway) and reduce hours at work etc. plus like lifenoteasy said by time the offer is placed etc I would have probably paid another £2,000 off anyway?!
I have emailed my IP to ask what the lowest figure would be (not mentioning £15,000) to see what they come back with- if they suggest the lowest figure is significantly higher than £15,000 and closer to the £20,000 I may just have to wait for a while and reconsider then.
Am interested to know what they would consider is the most realistic lowest offer now,
Thanks again for your help guys!
It is difficult for the IP to answer your question as it is not their decision to make. They can however tell you what they think is reasonable but at the end of the day it will be up to creditors to decide. They may contact a couple of your major creditors to sound them out first off the record while may help you going forward. It may help you if you hint that you are going to give up your second job and trying for a baby which will no doubt reduce your income going forward and available contributions...
I did wonder if perhaps hinting at those things when making a full and final offer may help with the offer, I will see what the IP suggests when I hear back from them, part of me worries however that as they will lose out on fees from what you are saying they may not be keen to put it forward, although I am with an excellent firm so I probably shouldn't have such a silly concern. It started off as just a curious enquiry but now I think about it more and more I would love to be able to "get the monkey off my back" as foggy put it and allow me the freedom to reduce my workload and progress with my life and start a family, I have resigned myself to the fact I wouldnt be able to whilst in an IVA and I would be too old after so if I could complete it with a full and final before my biological clock ticks off then that would at least give me the chance!
One of those life choices where at the end of the day it is what is best for you and potentially s*d everyone else.
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.
Hopefully your I will be professional and not base their recommendation on their own fee. They are usually entitled to charge a fee for the variation work. Personally I like closing cases - hopefully they will feel the same way too. Good luck and keep us updated?.
