Full & final Question

[hillsy]

Like many of us, we would all like to be able to finish our IVA early if possible. I am hoping maybe December 2009 if I am right in my workings out.Original debt £38,000 paying £266.00 per month, which works out to £15,960.00 paid back over 5 years with a 25p in the pound. By December next year we should of paid back £9,642.00 which will include 50% bonus payments from Hubbies work. The other 50% we can save along with any of our contingency money left over or any other spare cash if we have it. This should work out to about another £5,250.00, which we could offer for a full and final making a total paid back of £14,892.00, do you think this would be a reasonable offer. Obviously it is all if's at the moment but there is nothing like having a plan and a goal to work to to keep us going.

[Lisa2009]

Do you have an equity release clause?

[hillsy]

No I am renting. Part of why want to finish early to start saving for our own house again.

[Lisa2009]

It is possible to settle early but you must have very good reasons for wanting to do so and its best to offer as close to the original dividend as possible.

No harm in thinking in advance xxx

[Adam Davies]

Hi
When you enter into an IVA and have it accepted you still owe the full debt.It's not a case of paying the 60 x monthly payments[£15,960 in your case] as soon as you can then it's all over,you have to pay as much as you can afford,even if this is more than originally agreed,over the 60 months.You can offer a full and final,but you will have to show the creditors that it is in their best interest to accept it.
If you save your share of the bonus then you can make an offer,however I think that it will be a little later than you are planning
Good luck and stay positive
Regards

[hillsy]

Thanks andy for your advice, although not really what I was hoping for. I just think life is totally on hold until the IVA is paid up. We want to be able to save to buy a house again, this is impossible with the IVA. In another four years I will be 46 and Hubby 48, not ideal to be taking out a mortgage too late or it will cost a bomb, not wanting to be still paying it after retirement age. Also Hubby and I want to renew our marriage vows (somewhere warm and sunny) as we split up last year for 10 months, and are now very happy again. These are all dreams, we have been through so much over the last 4 years. We want to start living again, as I am sure all of us do but it seems such a long way away.

[Viki.W]

Hillsy, hang in there, you never know what's round the corner. I think it's lovely that you want to renew your vows, I hope you get somewhere exotic for that, I'm sure all will work out for you. X

[Lisa2009]

I know it seems that the IVA is holding you back right now but remember back to when the debts were weighing you down. It will all work out and that hot sunny place will still be there xxxxxxx

[MelanieGiles]

Creditors are unlikely to accept an offer of early settlement if you can show that you still have the ability to repay them, so I would personally use your share of the 50% uplift to take that trip.

[hillsy]

thanks melanie, does not sound like a bad idea to me. Perhaps I should look at it a different way. Carry on for the full five years, and use any extra money to enjoy Holidays etc. or save for deposit on house. I suppose should be really grateful that we do get the extra money to spend how we wish when a lot of people are not lucky enough to have it.

[MelanieGiles]

That is definately a philosophical way of looking at things - and probably the right one. Five years will soon be over and never again will you let someone else dictate how you cn spend your money. It is worth waiting for!

[Piston Broke]

i am about to enter into an iva (all being well) and i am in a fairly unique place as i have told my employers and they MIGHT help out and sort out a full and final settlement for me - unbelieveable i know!
the question i have tho, is this only an option as i go into the iva and not once it is agreed?
is there any benefit to this option? (as daft as it sounds)

[MelanieGiles]

If there is a chance of a full and final settlement, it would be better to do it up front rather than get into contributions for a few months and then to have to vary it. Creditors do not like early variations.

[Piston Broke]

thanks Melanie - is it as easy as agreeing the amount I need to repay, and then instead of making monthly payments, making a lump sum as full and final settlement?

[MelanieGiles]

Yes - that is the height of it, but of course as your employer is providing the funds they may have a different sum in mind.