Full and Final Settlement Offer

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Post by mushmansax » Thu Jul 15, 2021 1:49 pm
HI Guys,

I haven't made many posts on here but want to say thankyou to everyone online who has posted similar questions that I've had, and to the experts who have replied which has somewhat helped me reconcile a few things in my mind. However, I do have a few questions but first with a little context:

1. IVA began August 2019. Net salary at the time £1655/mo, Outgoings £1550/mo = £105/mo payment.
2. In Dec 2020, while still on furlough with reduced pay, I took a part time job averaging £1700/mo extra income up to end of March
3. Offered full time contract in March with further salary increase. Due to a few mistakes it has taken me until now to work out new true salary
4. Most recent pay slip £2650 which should be my new average salary.
5. Expenditure has not changed (£1550/mo) - based on this I have calculated my payments due to increase by £414.75/mo (10% 50/50 rule)
6. Between December and June I have averaged £1206/mo extra payments to a total of £6030 on an IVA originally at £60x£105 = £6300.
7. My current 100p figure is £4913 which includes fees and statutory interest.

Now the questions:

1. When submitting my new I & E with the only change being my salary, do I have to submit bank statements or can it be just the 3months of payslips?
2. Would a £3000 Full and Final offer be considered based on the information above, noting that the money is from family and is only available for this puropose?

In hindsight, I think this post is a little too "context heavy" given the two questions above but I've chosen to leave them in as my simple aim is to be out of the IVA as quickly as possible and maybe someone could offer some advice outside of the specific questions I've asked.

EDIT: Payments between DEC-JUNE have averaged £861.43/mo - Payments were not made in 2 separate months of 7 so the original reported average is skewed


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Post by Foggy » Thu Jul 15, 2021 2:46 pm
First, the 10% 50/50 rules does not apply to pay increases --- that is a straight 50/50 split of the increase. Pay slips should suffice, but IPs do differ in their requirements.

Salary has increased from 1655 to 2650 a month --- so an increase of £995 per month. Split this 50/50 --- your IVA payment should increase by £497.50 a month. Making your new monthly payment £602.50. There might be arrears of extra income to make up --- your IP will calculate this.

By August of this year you will have 36 more payments to make (assuming you are a renter, not a home owner) --- but will hit that 100p in the £ figure a lot sooner --- around April 2022.

It could take 2 or 3 months to arrange a full and final settlement. Will creditors be happy to give up nearly £2k to save 6 months ? They might, but my feeling is that a £3k offer might be a little light (especially as they are losing another £300-ish in extra fees for the variation meeting).
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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Post by mushmansax » Thu Jul 15, 2021 3:35 pm
Thanks Foggy.

When you consider those dates it's not actually that long to wait in the grand scheme of things, especially given that continuing to pay the average £861/mo could reduce that time a little bit further too.
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