A good F&F offer?

[gemma685]

I have about £7,700 left on my IVA and I have been in the IVA since September 2018.

What would a good F&F offer be?

There will be no mortgage to release equity in the 5th year

[luluj]

The best way to calculate an iva offer us to multiple your monthly payment by the number of months you have left in your iva.

Then when you have that figure you could consider offering a little under for early completion.

Be prepared to explain why the early completion and also where the money is coming from etc.

[Foggy]

So you have around 28 months left, so saving two years of more creditors messing about with dividends. Some will depend on how high your dividend is --- that is to say how much creditors are already giving up --- before deciding how much more they will say goodbye to to save those two years. I would think somewhere between £6,000 and £6,500 might be looked at seriously. Of course, the better the offer, the more likely it will be accepted.

[gemma685]

My new disposable income is £310. If I have 28 months left then the total I would be paying back is more than what I owe. I’m assuming they would only look at a very high offer in this case

[luluj]

You always owe the full amount of debt pre the iva agreement ... £8660 is what you would pay in total up until the last payment if you carried on for the full six years- this would simply provide a higher return to.creditirs.

As foggy has said if you consider the point that you are taking 2 years off the iva so creditors will get their money alot earlier, an offer of around £6500 maybe favourable.

[gemma685]

Hi Foggy, as my Iva would end in September 2024 would I not have 43 months left?

So you have around 28 months left, so saving two years of more creditors messing about with dividends. Some will depend on how high your dividend is --- that is to say how much creditors are already giving up --- before deciding how much more they will say goodbye to to save those two years. I would think somewhere between £6,000 and £6,500 might be looked at seriously. Of course, the better the offer, the more likely it will be accepted.

[kallis3]

One of your posts said 28 months left which is what Foggy was going on.

[Foggy]

Hi Foggy, as my Iva would end in September 2024 would I not have 43 months left?

So you have around 28 months left, so saving two years of more creditors messing about with dividends. Some will depend on how high your dividend is --- that is to say how much creditors are already giving up --- before deciding how much more they will say goodbye to to save those two years. I would think somewhere between £6,000 and £6,500 might be looked at seriously. Of course, the better the offer, the more likely it will be accepted.

I was working on you saying it started in September 2018, so you are around 28 payments down. Assuming a 60 month IVA there would be 32 months left. Looking at a few months to get the offer set up and accepted it would be 29 - ish. But, I assume from your comments now, that you do not have the standard 5 year arrangement but a 6 year one ---- so, yes, I am afraid creditors might be looking at a little more.