Hello there. I entered into an IVA in 2017, it was agreed 5 years. My first year I paid £252 per month. I changed jobs with an increase in pay and for the last 3 years I paid 382 per month, then it has stayed at 350 ish. I’m a few months or so away from entering final 12 mths. My parents are willing to gift me the funds to make a full and final offer. My review normally starts around June time. Since my circumstances have stayed pretty much the same I am wondering what sort of offer is likely to be accepted.I had been thinking around 4000 as the past month is a partial payment. It means that the creditors would get the same money as if I’d stayed on it for a further 12 mths, any advice appreciated. Thank you
Final offers are usually based on remaining payments, which, in your case, assuming no change at review, will be around £4,200. Often this can be reduced a little to allow for savings in time and admin costs, but, in the final 12 months, these savings will not be there, so you need to stick, pretty much to the full figure. Bear in mind. also, that a variation meeting will be needed, which will add £300 - £500 to the fees. So, yeah, £4k might do the trick. This is all assuming that you are renting and not a homeowner (which could see another 12 months added to the IVA if equity release is not possible).
It takes a couple of months to get this organised, so don't leave it too long.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk
Thank you , am planning to email IP over weekend. At least I’m in the right ball park. Wanted to get the ball rolling ASAP, but didn’t want to offer anything too low. Your advice is very welcome. Thank you!
I personally wonder if you would be better finishing your iva as agreed - what is the benefit you are seeking from closing early? It won't change your credit rating any sooner and the iva will remain on file until the 6th anniversary.
As foggy suggests it takes a few months to prepare, get approved and upto 6 months for completion certificate so all in all not saving huge amount of time.
I'd be more tempted to ask your parents to gift you the money after your iva has concluded so that you could make use of it at that point.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
I guess just having it hanging over me. Even if it’s another year till it drops off completely, I’ll feel like it’s not such a burden anymore. It was the right thing at the time but I could gain in a little headway into rebuilding my credit plus not being bound by the terms anymore. Thank you for your input!