www.iva.co.uk

Hi There. I have a question regarding the possibility of offering a full and final settlement. I am 11 months into a 5 year IVA. The situation is that when I initially got into debt I had to move back home with my parents to reduce my costs whilst paying it all back. Towards the end of this year (October time) I will need to move out of my parents which is going to mean renting. Clearly this is almost impossible with my current monthly IVA Payment.

My partner thinks he will be able to get some money together for me by October to be able to offer a final settlement and get out early. I will then be able to rent and pay him back in much smaller monthly installments which will help.

My initial agreement is as follows: Total unsecured creditors - £25,235, 60 monthly payments @ £347, Total money for creditors: £20,820, Nominees fees: £2750, Supervisor's fees: £3750, dept of Trade and Industry fees: £10, Office holders Bordereau £114, Irrecoverable VAT: 1138, Net Funds available: £13,058 (51p dividend to creditors). By the time I am ready to make a final offer I will have made 16 payments (so £5552).

I am unsure as to how much money would be an acceptable full and final offer, without the fee's etc. Is this something which you are able to advise on so that my partner has an idea of how much money to raise? And also, do you think my circumstances are such that with the right sum my offer is likely to be accepted? Or would you advise asking for a settlement figure as opposed to making an offer? Thanks very much for your help!

Hi Lilly I haven't got a clue so not much use to you really but I hope you get the advice that you need.

Good luck
xx

hi Lilly, i havent got a clue either and all those figures baffle me, maths is not my strong point but welcome to the forum you are in the right place to get some good advice, im sure someone will answer you soon.

good luck

There is no hard and fast rule as to what the creditors would accept in a full and final settlement. The Supervisors fee is presumably £750 plus VAT per year so by closing it early a couple of £ks will be saved.
If you are looking for a figure that ought to swing it, then between £10k-£12k ought to do it. The higher figure will give pretty much the original dividend, the lower would result in a modest discount.

Are these figures achievable?

Ian

I am sure an expert will come along shortly and advise you fully. When I offered a f&f settlement I offered an amount that was roughly the same dividend that creditors would receive over the course of the IVA - mine was turned down but I had a modification stating that there could be no variation within the first 24 months so it might be wise to check you have no modifications!!

Very good point!

Creditors do not like variations to settle so early on, so I usually tell my clients to wait until the first year anniversary and then try an offer.