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
It sounds good to me but you will have to make sure the offer is only available for a full and final and will be withdrawn if not accepted.
Very generous of your family member.
You could try to make a lower offer initially.
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
Most F&F offers assume that equity release will not happen ( as in most cases that get that far) and that the 12 month extension will apply --- so the creditors would be looking at getting possibly less: I assume you are paying i.r.o £144 a month, with 48 payments to go -- add the 12 extension, so 60 payments at £144 would be £8640.
So --- they can, as things stand, only count on getting £8640, over the next 5 years. An offer of nigh on twice that would be very attractive! Added to which they will be saving 5 years administration costs which would, in reality, decimate the income for them.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
As you have said 'we' are you in interlocking IVAs?
If that is the case it sounds as if you have less than £5k equity each so you might find the extension/equity release does not apply (depending on your terms) and the offer should be based on the remaining contributions of c£6k instead...
When we told them that we want to put a full and final in they said that we have so much remaining and then we have £8000 and odd that we would be expected to release.
When we said what if we put in something like 6-7k as the offer they said “ In regards to the settlement offer we can put this forward however it is lower than the remaining term inclusive of equity and it will be up to creditors to agree to this but we can look to put this offer forward on your behalf.”
So I am assuming we do have to put in quite a high offer then?
It's not joint but interlocking as Lisa says. You can try the lower amount and see what they say.
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
What the creditors can expect to get re. equity release will depend on whether the clause will even be triggered. IF it is triggered it will then depend on whether any can actually be released -- if not they get the 12 months extension.
The majority of F&F offers offer a compromise in that they assume the clause will be triggered and the 12 month extension will be the outcome --- most creditors are willing to take this gamble for an earlier resolution.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I think you need to have a careful look at your terms.
Most IVAs say the minimum for the equity is £5k per debtor. As you currently have less than this you might like to try and argue the clause might not kick in
at all when month 54 has passed.
However there's not much in it really. 12 months extension (assuming contribution levels remain the same) is only going to lead to an extra £1,728 (gross of costs).
So creditors will need to decide whether to accept a settlement now let the case drag on and hope to get maybe £1,728 more (gross).
The more attractive your offer, the more likely creditors will accept.
In my opinion your worst case starting figure is £8,640 for 48 contributions left plus an assumed extra 12 months worth of payments.
Maybe an offer of £7.5k would be seriously considered.
