Full and Final

[Jellybeans]

I'm currently in an iva til 2023 (credit fix)
I'm being made redundant in March21
I will be proposing a full and final based on ill health and redundancy. My iva provider have all he evidence based on my ill health .
I currently pay £400 pm
My balance is is 9813
I will contine to pay 400 for t jan / feb/ march/ april 21 which bring my balance down to 7813 .
I'm a homeowner so an extra year payment has to be added which increases my balance to £14613.
I'm.proposing to offer £10k. Is this a reasonable offer or can some please provide some guidance as to what a reasonable offer should look like.

I've spoken to my creditor about this and they were happy to put this forward once I provide them with evidence of my redundancy payment.

I've just read through some comments where offers are low and have been accepted by the creditors.

Any guidance is appreciated.

Thank you

[Jellybeans]

Sorry I forgot to say the 14813 bal is is based on me taking a payment break in Jan IF the £10k is accepted.

[luluj]

You will be entitled to retain some of your redundancy for living costs up to 6 months normally.

In my opinion and not knowing your full circumstances, with the current situation finding new employment may not be as easy as hoped, and therefore I would consider whether using all your redundancy towards to a full and final is the right approach, or whether you would be better to hold off and save your share of the redundancy for day to day living until new employment and your health matters improve.

[kallis3]

I was allowed to use some of my redundancy pay to make a full and final a few years ago, and it was accepted. I retired at the same time with a private pension and had no problems. I appreciate times are different now but it is worth trying to see if you can get it accepted.

[Foggy]

It is impossible to predict what the reaction might be, as you have said, you have seen low offers accepted, But, I have also seen high ones refused ! CF will, in all likelyhood, tell you that they want more ( along with £300 to pay for the meeting), but it is your offer, not theirs.

[Jellybeans]

Thank you for the response.

My health wont really improve as I was diagnosed with a brain tumour. I am a single mum with 2 young children. I also feel my chances of finding employment with the salary I've been use to will be hard due to covid/health impact. Good news is I have been getting to interview stage so must be doing something right.

I was told by my creditor that I could keep £16,092 which they gave no interest in. Anything above this amount has to be paid into the iva. I will be receiving approx £16858 in redundancy.

It make sense to me to get of this debt now by offering a full and final.

Do you think £10k is a realistic amount based on the figures I mentioned earlier?

[Foggy]

You are saving them 3 or 4 years messing about and, with all other circumstances, I think £10k would have legs.

Best of luck. Please let us know how you get on.

[Jellybeans]

Thank you Foggy.

I've now had the opportunity to sit down and work out a realistic proposal for my creditors.

I am only able to propose £8,118 full and final against a total settlement figure of £14,213.

Can I have thoughts on this. Originally I said I could propose £10k without looking into my ongoing expenses. I've even reduced my expense by £250 to accommodate a full and final offer.

Any advice is appreciated before I go back to my creditors.
Thanks

[Foggy]

£8k might be a little light ... but, you can only ask. Fingers crossed.

[Jellybeans]

Thank you for your reply.
I will also have a discussion with my creditors and provide any supporting Information they need and see how I go from there.

Thank you to everyone who has responded and I wish you all a very happy new year.

[kallis3]

I would not speak to your creditors - that is the job of your IP. You may find that some of the debts have been sold on so you would not kno who to speak to.

[Jellybeans]

Thank Kallis3

I'm not directly in touch with my creditors ( I used the wrong terminology) Creditfix are my IP so I'm already in discussions with them .

Thanks for pointing this out to me

[kallis3]

That's no problem then! Just put down all of your reasons as to why you want to do this. Perhaps a letter from your doctor/hospital would be of help.

[Jellybeans]

Thank you again.

Creditfix already have all my medical letters and I just need to give them my recent hospital letter where it shows a regrowth but stable for now.

I will keep you updated once I have an outcome.

Really appreciate the advice and support on this site.

[kallis3]

My thoughts are with you and I hope it goes ok.