Creditors can come back with a counter offer, but my advice is to put the best offer forward that you can in the first instance. I would approach this by working out what your true, and comfortable, disposable income actually is. If you are constantly being topped up by family members, to meet basic living costs, then your payments are too high. I would then approach your IP on the basis of an offer based on a multiple of the remaining payments you still are obliged to make, timesed by the level of your newly calculated disposal income.
Thanks for all the replies. What are your thoughts on making an offer of £2500 and increasing that if it is rejected to a maximum of £4K. If I did need to make the increased offer it would need to be in May 2013 instead of January as my relative would need more time to raise the money for the full and final settlement. The 4K including payments up to May 2013 would make the return 82% including the payments I would make to May 2013 as well as what I have already paid.
Hi Sadie, if that is what you want to offer then speak to your IP and see what they say, they will know your case in detail and will advise if this sum is likely to be accepted
Hi Melanie, I guess if I make the max offer of 4K there is no way to go from that as that is the max that can be offered so couldn't do above it if that makes sense and not keen for IVA company to charge me a lot for a meeting. What percentage for final settlements have your clients settled for with the creditors on an average?
I don't think that I can remember a case in my own portfolio where a variation was offered which was not ultimately accepted by creditors - perhaps with some slight amendments. But I would stress again that best offer usually ensures a good result at the end of the day.
Hi Sadie, my (our) offer will be around £24.5k which is simply the sum of the remaining payments including the equity clause. Considering the delay between submission and presentation of the proposal I`m taking off a couple of monthly payments as these will have been paid by then anyway.
That`s not to say your creditors in your arrangement would not accept less than the original dividened though, as every case will be different. At the end of the day a bird in the hand is worth two in the bush !
Worried, unless you add one another as Frugal Friends (via your profile) you won't be able to.contact es h other off forum as contact details aren't allowed in threads.
Hi to all who have replied to my questions. Much appreciated as I have so much more idea as to where to go with an offer to my IVA company now. I needed to find out more information before putting a proposal forward. I will keep you updated
I made an offer to my creditors via my IVA company and I have to say they were not very helpfull.
Basically they said that I would need a reason to settle the IVA which is fair enough. and I have a very valid reason. However, they said they would need to do a full income and expenditure review before they would put the offer forward.
Is this correct? Maybe I am missing something here but I thought that if you made an offer the IVA company had to put it forward to the creditors as it is without any other details.
So much of the IVA is made up of Supervisors fees that the creditors don't get much of the money anyway.Also a lot of the debts have been sold on to other companies for I expect a very small amount of money.
Is it a case that IVA companies just want to keep the IVA going so they continue to receive their fees? My IVA company have done very little for me since I started my IVA in April 2009 and although I have paid nearly £7,500 in payments very little has been paid to my creditors.
Also would there not be a reduction in the the amount offered to the creditors due to the IVA finishing early?
