Full And Final

[Mxlee8]

Quick question guys.

This is a little question todo with full and final offer. My debt is roughly 8k

Have to pay £5520 over 5 years.
£92 monthly.

I'm Coming up to my 2 year of iva.

What would be a sensible offer to end the iva in full?

Thanks lee

[Marty171]

if you carried on paying for the 5 years your creditors would be looking to get another £3312 £92*36, i would offer somewhere around 3K.

[Mxlee8]

Thanks marty

[Foggy]

If you are coming up to year 2, then, by my reckoning you have 48-ish payments left, so, £4416.

Your payment is pretty much as low as can be while making the IVA worthwhile for creditors, so not much room for reduction --- that said the creditors may well be glad to get it off their books. I would offer £4k ( I am not as cheap as Marty )

[abbiesmum2003]

Will it not boil down to the whole equity thing Foggy?
Martys calculation is to finish the contracted 60 months however youve added an additional 12 months on presumably to take into account a possible equity clause.
Agree with foggy that at £92 it is a very low monthly payment already so there may not be much room for reduction. You need to go in with your best offer-Wont be able to bat around different amounts.

[Foggy]

Abbiesmum -- I have not figured equity in this. Mxlee's post said he was coming up to year 2 --- from that I assume he has just finished, or just finishing year 1, so 12 payments made from 60 -- leaving 48 to go. I could be wrong ( it wouldn't be the first time)

[Marty171]

Oh i read that as end of year 2, apologies.

[abbiesmum2003]

lol! Yeah i did as well Marty! lol!
Reading it again it could be only completed a year.
Hopefully posted can clarify.

[Mxlee8]

Sorry guys and girls late reply. Yes only completed a year. Heading towards 2nd year. ( sorry for not making that clear)

So I'm guessing there's not much movement in the settlement figure as it's such a little amount.

.

Also would like to add. If I did put it a settlement and it was agreed ect.. Do they process the completion certificate then or still at the end of the 5 years? And if so would I be able to apply for a normal current account after settling the iva or would that still be a no until after the 6 year mark?

Thanks for all your replies

[Foggy]

Lee -- they will go through the usual closedown procedures once the final payment has been made ( the lump sum) and you will be issued with a completion certificate once this is done. BUT the IVA will remain on record until the 6th anniversary, so the credit files will be shot until then.