Posted: Wed Jan 28, 2009 10:30 am
Full and Final question - expert advice needed
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
Any advice will be greatly received.
Many thanks
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
Any advice will be greatly received.
Many thanks