Best full and final offer for my IVA

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owen134
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by owen134 » Wed Jan 09, 2019 11:09 am
Hi All - currently going into my 3rd year of my IVA - paying £250 per month = 15,000 in total (£8750 left), = home owner with a extension clause included

so my question is - what would be the best F&F to offer and also when does the extension clause kick in - i think i read some where year 4 - so if i could avoid it,then i would try and offer something this year
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Foggy
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by Foggy » Wed Jan 09, 2019 12:47 pm
owen134 wrote:
Hi All - currently going into my 3rd year of my IVA - paying £250 per month = 15,000 in total (£8750 left), = home owner with a extension clause included

so my question is - what would be the best F&F to offer and also when does the extension clause kick in - i think i read some where year 4 - so if i could avoid it,then i would try and offer something this year


Equity is usually considered at month 54 (as per your proposal). Exiting early will not dodge that bullet and it has to be taken into account in your offer, by assuming the 12 month extension. A full and final offer is based on the number of payments left plus 12 for equity release, so, in your case, £ 11,750. You can round this down a little, due to the savings they will make in admin, so, I would venture an offer in the region of £10k would be looked at seriously. The only way to dodge those 12 months would be to prove now, to the satisfaction of the IP and creditors, that there will be less than £5k of equity in 3 years time.
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Lisa Thomas
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by Lisa Thomas » Thu Jan 10, 2019 9:15 am
I agree an offer of £8-10k would probably be attractive to creditors.

Do you have enough equity for the clause to kick in? Otherwise you would only have c £9k left to pay so could possibly offer £6-7k.
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