reasonable figure for offer as a settlement ?

[d1234]

By December this year I will have paid £15,000 in to my IVA + approximately £500 - £700 in extra payments. My original IVA was for £26,880 and my original debt c£37,000 (though all the original debts have been sold on). Come December I will have two years and two months left on the IVA.

Based on the figures above what do you think would be a reasonable figure for offer as a settlement in December? (I know I cannot offer the money myself). I was hoping between £5 - £6,000 would be a realistic figure that the creditors may accept? I understand that differing IVAs vary and you can't predict the creditors response but in your experience do you think I am being realistic with that projection? Any advice would be a great help, I have to get out of this situation as soon as possible.

[Lisa2009]

If you dont have an equity release clause built into your IVA then you should offer as close as possible to the ammount your creditors will recieve if the IVA were to run its course.(less IP fees for the time you would no longer have the IVA)

You will need to state where the money will be coming from and explain that the money will only be available if your offer is accepted.

[MelanieGiles]

I suggest that you ask your IP to calculate a settlement figure for you based upon achieving the original dividend pledged to creditors, but I would think that your offer is on the low side and ought to be between £8,000 and £9,000.

[abcdefgh]

I appreciate you taking the time to answer my query but I am a little confused. I was advised on this site that when debts are sold on it is usually for between 12 - 20% of the debt. At the top of this range, 20 %, that means my debts of £37,000 were sold on most probably for no more than £7,500. I was also advised that these companies look for a quick turnaround and aim for a profit of around 20 to 30 %. That would be c£2,300 profit again taking the highest figure giving a rounded up total of say £10,000 based on the advice I have received on this site. With my IVA fees being £9,000 over the five years then thats a total of £19,000. So I cannot understand why in December when I will have paid £15,000 + c£500 in to the IVA, a settlement figure of £8 - £9,000 on top would be necessary. That would give these companies a profit of around 90 to 100 %? They would be getting this profit over 2 years before they were due to do so, so where is the point in making an offer in that case financially?I know this is guestimation but is based on the advice given to me by experts on this site.

[MelanieGiles]

It is correct that when debts are sold on they are sold at a very low rate, but that does not mean that they will be prepared to accept anything less than you can actually afford to repay. If you are affording the IVA payments, there is no reason to need to settle early unless you are going to offer a similar dividend to that originally pledged.

The main debt purchaser - Max Recovery - have recently been turning down a lot of variations, so instead of getting advice on the forum from people who do not know the exact terms of your particular case, I suggest again that you seek the advice of your own IP who ought to know what is likely to be acceptable.

[abcdefgh]

Thank you, I take your point. What had raised my hopes somewhat had been the fact that these companies were alledgedly supposed to prefer a quick turnaround on their investment. I hoped that shortening the time span for repayment term might allow me some leeway with the actual amount of money involved in a potential offer. As advised I ahve contacted my IP. Thank you for taking the time to answer my questions - your help is appreciated.