www.iva.co.uk

Hi i am 2 years into the IVA, i owe 14,500 still. My brother is willing to pay 10 grand to settle it, do you think this is a reasonable offer? Thanks

Is the £14,500 you mention the sum of the remaining payments? Do you own your own home ?

If you are a homeowner, you will need to factor in another 12 payments.

Assuming you are not a homeowner and this is the amount the creditors are expecting to get over the rest of the IVA, I would say that £10k would be worth trying as a Full and Final Offer ( do not use the term settlement --- that is a different and more expensive animal). But, it is difficult to guess -- I have seen low offers accepted and, at the same time, high offers rejected ( even 2 offers in excess of the outstanding amount !).

Best of luck with it.

Hi thanks for your reply, no im not a homeowner, i rent my home, but since i have gone into my IVA, my rent had gone up, my salary has gone down slightly due to change of jobs, and i have had a child since, i just want to be rid of it, i was rushed into it at the time i had nowhere to turn, and its made everything so much worse now, Thanks

sorry yes 14,000 is whats remaining

£10k sounds reasonable - it will be up to creditors to decide.

The more attractive the offer, the more likely they are to accept it.

If they reject it you could always put forward an increased offer, or pay a few more contributions and then when the balance is a bit lower put it forward again.

Bear in mind many IP firms charge £500 fee per variation.

Best of luck

Hi Lisa can you tell me who pays the £500 fee?

It comes out of the assets in the IVA and therefore reduces the amount the creditors will receive.

Thank you that’s very helpful.