Hi. After my question regarding re-mortgaging etc they have decided to add an additional 12 months to our IVA our original debt was £65k and it was agreed that we would pay back £37k at £616 per month. We have now repaid £36K plus £1400 from ppi and VAT refund and and have two monthly payments left of our original 5 year term. What would be considered an acceptable amount to offer as a full and final settlement? We would have to ask parents for this money but I really feel sick the thought of carrying this on for yet another year. We just want it gone. Any advice would be appreciated. Thanks
Try to offer as close to 14 x £616 that you can, this is the amount that your creditors are expecting over the next 14 months
I would think 6k may be acceptable
Wow!! that's a lot more than I was expecting. When we started the IVA I recall (although I may be wrong, it seems such a long time ago now) that we were looking at around £15k in F & F settlement and that was before we had paid anything. not sure my parents can afford £6k, I was thinking more £2k - £3K
There would need to be a reason for creditors to accept less than the estimated amount left to pay, perhaps a change in personal circumstances resulting in reduced disposable income going forward
You can try to offer less but your IP may not recommend the offer to your creditors and may even refuse to put it forward
Ignore the original estimates and the amounts paid back to date - the monthly contributions multiplied by the number of months you have left (including the 12 month extension) will be your starting point of any offer.
Sorry I have just seen you and Andy have wuoted the figures - remaining payments would be c£8.6k. An offer of £2-£3k would more likely be rejected as the IVA estate will receive £8.5k if they let it continue for 14 months.
our original debt was £65k and it was agreed that we would pay back £37k at £616 per month. We have now repaid £36K plus £1400 from ppi and VAT refund and and have two monthly payments left of our original 5 year term. What would be considered an acceptable amount to offer as a full and final settlement? We would have to ask parents for this money but I really feel sick the thought of carrying this on for yet another year. We just want it gone. Any advice would be appreciated. Thanks
