Hi, when making a full and final settlement offer should I offer the full amount remaining or what the creditors actually receive minus the charges that the IVA company take? I have just started my 4th year in my IVA and pay £132 per month so probably looking at another 34 payments left. £4488 owing but surely administrative costs should be reduced?
You could try making a lower offer - where is the money coming from?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
You could try £4k - make sure you tell your IP this is only available for a full and final and won't be available for anything else.
If you are struggling with your IVA you could try asking for a new I&E - your payments may be too high,
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Yes, admin costs will be reduced, but, from the IP's point of view, his fees are often, these days, based on the amount you pay in. So the less you pay, the less he gets.
From the creditors point of view, going through a F&F offer and meeting costs them an extra £500, or so, in fees.
At the end of the day, everybody should get close to what they signed up for. Whilst there is a little room for rounding down an offer, bear in mind that the creditors are already taking an enormous hit on what you actually owe them.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
