www.iva.co.uk

Good Afternoon.
I know this kind of post has been answered several times but I would like a little bit of help with my f&f settlemtnt as my practitioner and his company havn't been the most helpful during the past 2 years.

My IVA started on the 1st April 2005. I owed £17,400 to 5 creditors of which £14,100 was payable through the IVA, @ £235 a month.
The figure available for creditors was £7,528 and this was @ 43.3 pence in the £.
I have been told i currently owe £8,237 as of July 2007.
I have written to my practitioner to ask for a variation as a third party have offered to pay off my IVA. They have come back to me and would like my offer in writing and recommend offering "in the region of this amount".
I am enquiring as to what may be a reasonable offer given the figures above as I don't feel offering close to this is acceptable. I'm sure that fees etc are removed if ending 3 years early and a figure perhaps around 3,500 would be enough to satisfy the creditors and the practitioner.
What do you recommend?
Thank you in advance.

It's dangerous to assume that creditors would accept less than you originally offered. If you want to give a variation the best chance of being accepted I would work on that assumption.The more that you take off the original offer the more chance there is that the variation will be rejected.
You need to ask your IP what their remaining fees and expenses will be if a variation is proposed and approved. That will tell you what you need to pay in to the IVA to ensure that the creditors aare offered the return that you want to make.

You must put forward the best offer, not the one were you think you can get away with the most.
I would ask the IP to confirm the position re fees. The fees should be taken on a pro rata basis and if your arrangement is concluded after 3 years, the IP should only be entitled to the equivalent of 3 years fees.
Clarification should be sought as to the basis on which fees are charged. There are a number of options:
1. Time Costs
2. Fixed fee
3. Percentage of realisations
You need to find out what the creditors agreed to in that respect. If you are offering a full and final settlement, the IP should contact your creditors and outline exactly what is being offered and exactly how the outcome differs from the original proposal. They should attach an estimated outcome statement to their report.

Tell it like it is.

Hi
Allow 1.5k for the nominee fees plus 1k for supervisor fees for each year,then add on a variation fee of £800 totalling 5.3k.This will be your IP fees to date[if they propose your offer].You have made 27 payments of £235 totalling 6.3k so you have 1k towards the creditors dividend so i feel that you will need to offer about 6.5k to return the original dividend [7.5k]
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Many thanks for your advice. This makes the figures more understandable.
The best offer my third party could make would be £6000 and based on the above I am hopeful that this should be acceptable. I was unaware of just how much the practitioner take for fees etc.
I am going to speak to the company today to ask for thier opinion and will then put the offer in writing.
Hopefully this could be the beginning of the end and the start of a new beginning.

Hi
Good luck to you,and do not accept the often quoted "you,ll have to pay a lump sum equivelent to your remaining contributions".It is just a lazy answer and remember if you offer 6k they MUST put that to your creditors even if they do not agree with it.Afterall it is a fair offer.
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp