We are well into our IVA with around 18 months to run having paid about 50% of the balance off.
However, we’re currently struggling to make the payments. I’ve been really ill and progressively getting worse this year (chronic illness) & my income has gone down significantly. I’m also the only earner. We’re considering making an offer of a lump sum to settle to avoid the IVA failing. How much discount would be reasonable to ask for on the outstanding balance?
There is no set 'rule', as it will also depend on what sort of hit the creditors are taking on the original debt and the reasons for the offer -- failing health is a good reason !
The term you need use is a full and final offer --- and this is usually based on remaining payments ( plus 12 if there is equity to be dealt with) and can be rounded down slightly to reflect time and admin savings, which you have little left.
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