www.iva.co.uk

How much should my Father in law offer for a f&f settlement. We have 46 months left of a 6 year IVA. We have a equity clause with a 12 month extension if we are unable to remortgage in the 5th the year. My Father in law wants to make an offer but I dont know what to suggest given the equity clause, there is no knowing what equity would be in our home in 4 years, but even if there was I'm told it is highly unlikely we would get a remortgage anyway? Please help, any advice would be much appreciated.

Generally arrangements make provision for a 12 month extension in lieu of equity release, if a remortgage cannot be obtained, so an offer should be based upon the remaining payments plus 12 multiplied by the monthly amount.

OK, so I've talked it through with my FIL and we currently pay £672 a month, with 46 months remaining and 12 extra months, that comes to around £39,000. My FIL suggested he could offer £33,000, is there any chance this would be accepted as F&F or would it have to be the full amount?

I would think that would be a fair offer (maybe even £30k -- but you don't want to push your luck). Remember that the creditors benefit too, from having the cash in a lump, rather than dribs and drabs, the IP has, ultimately, a little less to do and a "bird in the hand is worth two in the bush".

You could offer £30k and if rejected there is a little bit of wriggle room.