www.iva.co.uk

My mum has recently told me that she's selling her house to downsize and wants to share the excess money between herself and us kids (myself and siblings)
Depending on what the amount is, obviously, I'm intending to use it to pay off the IVA.
I'm curious as to whether it would be better for me to tell her to keep the money and go down the 'she's offered to give a Full & Final payment' route?
I started the IVA with around £12,000 (both my wife's debts and one of my own) this dropped to around 7500-8000 in the IVA and we have paid £60/month for the last year and a bit. Due to having a car on finance ending mid-IVA our payments are due to go up to £212 after 4 years (in just under 3 years time). They also stuck me with an additional 12 months on the IVA so I'll be paying the £212 for just under 2 years.
What would a 'reasonable' settlement figure be for them?
Assuming our current outstanding with the IVA firm is, say, £6800?
Should we go for the £6000 mark? Assuming that the house won't be sold straight away, say after another 6 months and £360 paid into the IVA: giving us a total in Apr 17 of roughly £6440?

Yes, it would be better for mum to hold onto your share of the gift until the IVA is over by means of a F&F. The amount should be based upon what the creditors stand to get if the IVA goes to term, less a little for saved admin costs etc. If you own your own home you might need to add 12 months worth for equity to be addressed.

I would couch the offer in terms that you offer £x which will reduce by the amount of each monthly payment that is made between the offer date and the sale of the house.

Agree with foggy - a full n final offer will be better in this situation ... she could state that if f&f not successful then the money will not be made available to you. She then retains it until the iva has concluded and cleared.

When you say 'they stuck me with an additional 12 months' - you agreed to this as part of your proposals and the point is that you get to keep your home (that you might lose in Bankruptcy) and the creditors get a little something in return for the asset they allowed you to keep.

You are also writing off part of the debts you accrued but can't afford to pay back.

It works both ways!