Early settlement

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Mick2021

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Post by Mick2021 » Mon Jan 04, 2021 6:33 pm
I’m halfway through my IVA and if payments continue I will pay a further £21000. If I was to offer creditors a lump sum to exit IVA early what figure would you suggest to be most likely to be accepted?

Foggy

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Post by Foggy » Mon Jan 04, 2021 7:27 pm
It depends on how much of that £21k is in relation to your original debt ( i.e how much of a hit creditors are already taking ).

Assuming you are not a homeowner ( or that the quoted figure includes 12 extra months ) I would venture an offer of around £15k - £16k .... but, as I always mention, I have seen low offers accepted as well as high offers refused --- much depends on the make up of your creditors and, as mentioned above, how much of a hit they are already taking. Of course, the nearer you get to £21k the better chances of success.
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

Mick2021

Posts: 3
Joined: Mon Jan 04, 2021 6:30 pm

Post by Mick2021 » Mon Jan 04, 2021 7:42 pm
I am a home owner and the figure includes the additional 12 months payments. I am just trying to exit the IVA ASAP. So do you think an initial offer of £15-16k would be a good start?

Mick2021

Posts: 3
Joined: Mon Jan 04, 2021 6:30 pm

Post by Mick2021 » Mon Jan 04, 2021 7:55 pm
I also think the total I will end up repaying will be very close to the original total debt of £37000
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