www.iva.co.uk

Hello, I currently have an IVA that i've just completed 3yrs this month. I have an outstanding figure of £10,258 to date. A very close friend of mine want to help me settle this debt and I was thinking of making an offer of say £6000 as ful, and final settlement. My question is should I make a few more payments to reduced this outstanding figure so that my offer may have a better chance of getting accepted or just go ahead and contact my IP with this proposal?

Contact your Ip and see what they say,all they can do is put it to your creditors. What are you paying a month into the iva? What was your original return going to be(how much per pound of debt were you paying?)

I agree with Plasticdaft.

Usually if you offer a full and final the creditors expect back as close to the original dividend as possible. If it is to be less, I think you usually had to have a good reason such as redundancy or illness.

You must make it known as well that this money is only available for a full and final.

Hi Plasticdaft & Jan, thanks for the advice, having checked my proposal, My original return would be £26,760.00 with a monthly payment of £446.00. My proposal is showing an 18% dividened to my creditors. Total unsecured debt amount of £96,765 was the figure when my IVA started.Can't seem to see how much per pound of debt i'm paying?.

My maths is rubbish, but on your figures that seems to be more than 18%.

Hopefully someone whose maths is better than mine can reply, but I suggest that you speak to your IP anyway to see what they thing about the settlement figure.

Thanks Jan, I will contact my IP to get there advice, just reading through the proposal again to see if I can find this figure!

As I say, I am useless on maths and me and hubby have been arguing over your figures![:D]

Hopefully one of the professionals will be on later to assist.

I could be totally wrong!

Ok Jan, stop the arguing, lets have some order there ok, I'm sure one of the professionals will respond later or another member of the Forum will know, cheers
Jeff

I think the figures are not to far away as you have to take the nomination fees and supervisor fees off the total amount paid the 18% would be £17,417 the payments would be £446 x 60 = £26,760 so fees would be £9343 so not too far off the mark.

Thats very interesting so my IP could also be affected by my offer? I remember a few years back of being asked by my IP if I wanted to re-finance my mortgage to pay off my IVA early when I was going through my second year financial review! Very interesting! thanks Jeff

I would think that some of the fees will be cut in a f&f so the £6,000 might not be to far away although it is at the low end of the scale. Your IP fees do seem a little on the high side as well but that may be because of the length of time your IVA has been running. I would sound your IP out and see what they say and if it looks like a no at present you could ask when he thinks that sort of figure would be right to put forward. It's worth a try in my opinion but I am no expert. But I think at the very least there is hope of a f&f to settle early at some point. Good luck.

Thanks Paul - I am useless with figures, and even though that was how we had worked things out, my head couldn't get round it - and no, I'm not blonde!

I hope you get it sorted out Jeff.

I presume the IVA would have been non protocol compliant and from memory fees were probably higher in those days.

You are probably right Paul. The protocol compliant ones didn't come in until February 2008.

The fees were not so consistent prior to this. Am I right in my thinking?