Sorry this is a long message but I really need some advice before I go back to my IP.
I have just been made redundant and have received a payout of £18,000.
I contacted my IP to find out what I could expect to pay as a full and final settlement and they came back with the following:
My total debt was £36,890.90 and I have paid to date £20,122.57. Fees to date are £5677.93. They have distributed £7414.55 to my creditors and they now hold a balance of £7150.88.
They are listing the outstanding fees, meeting fee and early settlement fee and the VAT as £2450.00 and they have said that to pay back 100p in the pound they want £24,775.47.
I do understand that creditors are entitled to get a full return but at the moment I have no chance of getting a full time job and am trying to find some temporary work as the industry I work in has been badly hit.
With my payout of £18,000 I need to leave enough to live on for 6 months so my question is do you think would accept a full and final of £10,000 leaving me £8,000 to get me by alongside some temporary work?
I have been paying into my IVA for 2 years and it was due to finish early as I had a big pay rise and was paying in £1000 per month. If I do get work I am likely to have to take a drop of £10-15,000 per annum.
I would like to know in this current climate would creditors look at this offer favourably being as I have no other income to offer them for the foreseeable future and would this offer them a better return than if I went bankrupt where they would get less.
This means that I would have paid a total of £30,000 on a £36,000 debt
Your IP was correct in giving you the full amount especially if they did not know how much you had received. However, what you are proposing does seem reasonable and your IP could circulate a variation proposal which ought to be accepted. I do not see a need for bankruptcy as this matter should be resolved easily. Speak directly to the IP or case manager and make them aware of the full facts. Good luck.
I agree with Michael - £10k is a good settlement figure to offer, bearing in mind that you need to retain a sufficient sum to tide you over until you find an alternative job.
