www.iva.co.uk

Hi, we are considering offering a full and final settlement. I would appreciate hearing anyone's experience of this process.
Also is there a template letter or is it best to speak to our IP first?

Always a good idea to run thoughts like this through with your own IP first Jayne, as they have detailed knowledge of your case and can importantly make decisions.

The process is relatively simple - just advise them why you want to settle early, where you are getting the money from and in which timescale, and they will give you an idea of your chances of success. Ultimately the decision lies with your creditors, as a variation meeting will need to be called.

Hi and welcome

Full and final IVAs are common and are more often than not accepted by creditors if they return the originally pledged dividend
Chat with your own IP first and they will then request your offer in writing

Good luck

Regards

Hi,

I am also in the process of my full and final being looked at by creditors. I wrote a letter stating the amount, who it was from and my reasons for not being able to continue. I had also included details of my reduced income and the impact that has had on the current payments for the IVA.

However when I spoke to my supervisor they couldn't give me any reassurance whether it was a good offer or not, so this is the reason why I have had to come onto this forum.

Thankyou very much.
Andy, when you say that creditors expect to receive an amount close to the original dividend, would they take into account any PPI claims already paid?

no, i think this is extra, considered an asset of iva. so its normally:

cost monthly iva X number of months remaining

(sometimes also including sum from the equity that would have been achieved through remortgaging, if this hasn't already been done)

Thanks Preggaiva and good luck.

Hi Jayne - we had a full and final settlement agreed taking into account the PPI paid. This was a strong case mind, as I had to take medical retirement at 47 and our income dropped substantially. So depending on your reasons for wanting to bring the IVA to an early closure any PPI paid in might be considered towards the settlement figure.

I, too, had a full and final agreed on payments made to date. Extra payments in the early months ( overtime etc) as well as a substantial PPI refund had brought my dividend up to the expected figure early. So, although, as Preggaiva says, the refund is a bonus to the creditors, it can help sway the case.

Thankyou both for sharing your experience. My reasons for wanting to settle early is that we are really struggling with to continue payments of £200 per month. We have no obvious reduction in income but as we are both NHS employees, we are in the middle of a lengthy pay freeze. Also our 2 kids, like everything, seem to be getting ever more expensive.
Do you think this would make our creditors more open to a lower offer?

If your disposable income has reduced, then there is every chance creditors will consider a lower offer.

Thanks again Melanie

Good luck with it Jayne