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I'm just gonna write a letter to my supervisor to put forward the following offer to creditors. i am so worried they wont accept it. if they don't is it normal practice to re-negoiate a higher amount or do i have to go through the whole process again??

offer is 10k. have another 26 payments of £610 to go making £15860. is 10k too low? also do u have to give a really good reason ie..redundancy etc...?

Hi Lottie,

You should normally have a good reason to complete early - redundancy is one reason.

Hi. The amount you offer should be as near to the original dividend as possible. Creditors will accept a small reduction due to the fact that they are getting the money earlier as well as the reason for the offer.

If you just want out, they will want as near the full figure as possible, they will be ahppy to wait. If you have health or job issues they are more likely to take a smaller settlement as the chances of the IVA failing if they don't are greater (bird in the bush and all that).

oh i want to cry, don't think my offer looks that good. its 4-5k off the dividend. do they sometimes suggest you pay for a few more months etc and then they accept the offer?

Always worth runnig it by your IP. What is the reason for the offer ? Might I ask where the funds are coming from ?

Hi Lottie - don't get upset until it is refused! Don't forget that it will be a couple of months to sort this all out and so another couple of payments will have gone in. The main thing is set out all your reasons for wanting to bring it to a close. If I had the option (and I may have next year) I would be stating how much the redundancy is, stating I understand you can normally keep 6 months of the redundancy back which is £x but in addition to this I am unlikely to get another job due to my ill health so in the circs I can only offer £x. Any reason you have should be put down so they can look at it objectively.

Just having a ponder --- surely, if the funds are being offered by a friend or relative, that alone is a good reason. i.e "The funds are being offered now, to help me clear up my finances, and the offer won't be there next month as the friend / relative would have spent it elsewhere"

ahh thanks guys for all your support. my reason to end this is because we just can't seem to afford the payments. cars breaking down, 2nd child costs, no salary increase this year due to public sector freeze on pay etc. etc..a relative is offering us the money. any help on how my letter to the supervisor about the offer should be worded etc??

I don't think you are alone with the pay freeze problem

First thing I would try is to have a heart to heart with your supervisor and run through your income and expenditure to see if there is any room for manouvre there. IVA's are no walk in the park, but they are not meant to be a punishment either!

You will need to demonstrate to your IP that there is a real need for the offer, by submitting a revised income and expenditure statement which clearly shows the areas in which you are struggling. If your disposable income is now lower than it has been the offer can be reduced as well.

I was thinking along the lines of a revised I&E bringing the anticipated dividend a bit nearer the offer as well as making life a little easier in the meantime. Wouldn't have thought there is much scope to reduce the offer. But, as ever, it's best to discuss with the supervisor, who will, hopefully, have a "feel" for how the creditors might react, as well as an idea of the case specifics.

ok thank you for all your advice. think i will look at the I&E and submit it.