F&F help please

[Missv]

CreditFix.
Currently been in an IVA for 8 months paying £100 per month.

Full settlement Balance to all creditors is £12,181.
Balance to Pay at the moment is 52x £100 = £5,200.

My question is - what sort of figure do I offer as a Full and Final. Partner is my donor and cannot get anywhere near the £12181.

I rent accommodation and have zero assets. I want to get out of the IVA to live more independently without having this over me each year. I understand it won’t disappear from my credit for 5/6 years.

Thanks

[Foggy]

The usual basis for a full and final is the remaining payments, not the outstanding debt ( that would be a settlement with fees ). So your offer should be based on £5.2k. You are saving them 4 years of messing about with small dividends too ( and the cost of administering this), so could reduce the offer a little to reflect this. Although the better the offer, the better the chances of success, I have seen low offers get accepted, as well as high ones refused.

I would go in with an offer of £4k - £4.5k.

[Missv]

Thanks Foggy,

When I spoke to the lady from the assets department at CF, she said an offer around 6k would show I was serious.

Obviously I trust your valuation, just concerned that creditors may realise I have not even been running with this IVA for a year and may think my £100 will increase overtime.

However I have concerns over job safety and reduced hours now due to retail and covid, so it may decrease, is this something you tell them or do they really want to understand circumstances?

Any tips I should bare in mind during this process? As my partner is about to draft a letter of intent for Full and Final offer ONLY.

Thanks again

[Foggy]

Yes, £6k will get creditors attention, more so than £4.5k --- coincidentally CF will also get more in the way of fees. Your offer should be based on your affordability, not CF's suggestions (nor, indeed, mine).

Do explain the circumstances, along with the current pressures on the retail trade and employment worries --- everything helps. Also, maybe, that juggling an IVA alongside the worry of ongoing employment is a pressure on your mental health that you could well do without.

CF do have a tendency to do things their own sweet way, but they should provide you with a copy of the proposal they put to creditors for you to approve.

[Missv]

Thanks Foggy,

I Have drafted a letter from myself and the donor. Will offer £4700 which is the absolute Max.

What you have said was a great help and also true, retails looking bleak, hours have been cut and futures not looking good. The stress is a lot especially with this IVA also looming.

Keep this post updated for info purposes. Wish me luck
Thanks again