Amount owed and settlement offer

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Post by jc944 » Tue Feb 02, 2021 9:34 pm
Evening, I am desperately seeking advice. I have been in an IVA with creditfix for just over 2 years. I have been making the agreed payments every month (despite an agreed 2 month holiday period when my wife and I temporarily separated)
My first issue is a number of e-mails to creditfix asking to clarify the amount of my original debt, as from the summaries I have from the chair report indicates a number of duplications, which are the same debt under different references for different debt collection agencies, I have not had any response from Creditfix to explain this, in fact I refused to sign the agreement until clarity was received, but they have never responded, and I have continued to pay the agreed figures.
So I calculate my debts to be circa £20k, however the following figures are on my report:
SoA amount = £27,235.900
Submitted Amount = £21,045.97
Admitted Amount = £17,527.44
However the figure they say that I am discounted from is £30,461.37
Can anyone explain how this is calculated and what the above detail means, as I cannot get an answer out of Creditfix
Secondly, I have contacted Creditfix to offer a settlement figure, as my parents have contacted me to offer to relieve burden, (they have concerns about the future with the present climate, and in their words do not want to leave us knowing we are carrying burden)
I have read of some of the terminology to use in an offer r.e. gift and full and final caveat in the offer, and we are presently putting the letter together.
based on the figure they have issued above the following summise is made:
£30,461.37 original debt (disputable - see note 1)
71% write off = £21,267.57
Remaining agreed to be repaid = £8,791.00
Paid to date = £3,241.00
Remaining outstanding = £5,550.00
Would an offer of £6,000.00 be sufficient? could I chance a little less? (for the benefit of my parents not me.
We privately rent and have no other assets


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Post by luluj » Wed Feb 03, 2021 6:13 am
Thanks for your post and questions. Unfortunately credit fix are not the quickest or easiest to communicate with, and I would write to them again with your request for clarity over the list of your debts and the amounts submitted. Creditors can only put in a claim once, original creditors may have sold on your debt so that sometimes confuses the matter if they have done this after submitting a claim, hence potential of duplication.

Re your offer of full and final, the easiest calculation to is no. of payments left x monthly payment amount.
In your question you state you have roughly £5500 left based on your agreed amount at your creditors meeting. I would be tempted to offer £5000 as the time it takes between now and the meeting to agree full and final you will have paid another 3 or 4 months payments.

I wish you luck... come back and tell us how it goes.
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Post by Foggy » Wed Feb 03, 2021 8:38 am
As Luluj says, a full and final offer is based on the remaining payments and bears no relation to original debt ( declared, admitted or otherwise). These figures are irrelevent, unless you find yourself in a position to pay the full original debt, fees and possible statutory interest.

This figure has to be inflated by 12 payments if you are a home owner, to cover equity release, but can also be reduced a little to account for time and admin costs saved by both IP and creditors. Though CF are probably one of the most avericious firms out there and will push for every penny ( including £300 to cover the variation meeting cost) --- But, it is your offer to make, not theirs.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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