Full and Final Proposal

[Flavour79]

Hi everyone

Looking to settle my Iva early as I have 31 months left to pay on £218 monthly payments. My sister has offered to give me the money to pay off if my IP will accept the proposal.
How much do you think is fair amount to be likely accepted by my creditors??

Thanks

[Foggy]

Assuming that there is no equity to be looked at your creditors are looking to get a further £6758 over the next 31 months. Allowing for the fact that they will be making savings in admin costs, I would put an offer in, in the region of £5,000. They might accept less, but might also refuse more !!

[Flavour79]

Foggy what do you mean by they might refuse more? I also have no equity.

[Foggy]

Foggy what do you mean by they might refuse more? I also have no equity.

Just that I have seen very low offers accepted, but I have also seen very generous ones refused (rarely).

[Flavour79]

Thanks for clarifying. Is there a set template to follow to make the proposal to IP?

[Foggy]

Not really -- just send a letter detailing the offer -- use the term Full and Final, not settlement (that is a whole lot more expensive). Mention that the funds are coming from a third party for the purposes of a F&F only, if the offer is rejected they will be retained by the donor and not be available for the IVA.

Most firms will get this sorted in a couple of months, a few take a lot longer, so you could mention that the lump sum will be reduced by the amounts of payments made after a given date.

[Flavour79]

Will 3 months be ideal time to state that amounts will reduce?

Thanks for all your support.

[Foggy]

Will 3 months be ideal time to state that amounts will reduce?

Thanks for all your support.

As long as you are not with Payplan, 3 months should see it done and dusted.

[Flavour79]

Am with StepChange

[Foggy]

Am with StepChange

OK -- they are not the fastest, but do have their moments

[Flavour79]

Hmm . Will draft something up by the end of the month and hope to get the funds from the third party ready to make the proposal.
Thanks again

[Flavour79]

One last question here . Once it accepted and all creditors agree how long does it take to come of insolvency register as I know with my credit file it's still gonna be 6years?

Will 3 months be ideal time to state that amounts will reduce?

Thanks for all your support.

As long as you are not with Payplan, 3 months should see it done and dusted.

[Foggy]

You will still remain in the Register for "up to" three months from the date of the completion certificate. I believe Stepchange are pretty prompt in getting the certificates issued.

[Flavour79]

Thanks for that information.

[Flavour79]

I decided to ride out the payments and I now have 6 payments left to complete IVA at a monthly payment of £256. At this stage is it worth a F&F of £800 which will include this month payment which usually is taken on the 20th of the month.

Thanks in advance.