Full & Final offer

[Nakedguru]

Hi,

I’ve read a few of the posts and was surprised to learn my F&F figure can be lower than my remaining payments.

Currently I pay £122 a month and have 26 months left - £3,172.

I’m with PayPlan.

Would an offer of £2,500 be too low to be accepted ?

Thanks in advance,

Steve

[luluj]

An offer of full and final should be based on as close to your original dividend as possible.

It will depend on reasons for full and final and also where the money is coming from.

You can ask to submit an offer of £2500 plus any payments made between time of offer to offer being accepted but you should make it clear that the money for the full and final is only available to you for the purpose of ending the iva early.

[Foggy]

F&F figures can be reduced to reflect administration savings. However, your current payment is pretty close to the bone anyway and the available 'wriggle room' reduced. Don't forget that a variation meeting to consider the offer will also be adding £300 - £500 to the costs.

That all said, I have seen low offers accepted before, as well as high ones refused. It is a difficuklt, if not impossible, call to make.

But, as Luluj says, there will also be the few payments between making the offer and it being accepted, which will knock 2 or 3 payments from the balance, bringing it much closer to that £2500 you are thinking of offering.

[Nakedguru]

The total expected income from my IVA is £6,720. That was based on £112 * 60 months.
After year 1 my payment rose to £122.

I’ve paid £4,272. Which would mean there’s £2,448 remaining from their initial calculations.
(Obviously they’d get more if they keep my IVA on at £122)

“ It is therefore anticipated that creditors will receive an estimated dividend of 11 pence in the £.“

How do I workout if my offer is close to the dividend?

[Lisa Thomas]

You don't really need to worry about that, the offer needs to be close to what you were going to pay into the IVA, if it continues in the normal way successfully.

To work out the estimated dividend you will need help from your Supervisor as they will need to calculate estimated future payments, such as their costs to be deducted from the estimated total receipts.

If you put forward an offer they will likely produce an estimated outcome statement/dividend for creditors to consider anyway.

Best of luck

[Foggy]

The offer is based on the remaining payments at the current rate ... the initial figures and dividend were an estimate only. So, they are currentlty expecting a further £3127 from you and the F&F needs to be based on that, not on old calculations.

[Nakedguru]

Hi all,

So I offered 100% of my remaining debt (turned out to be £2800ish) plus the £300 creditor meeting charge and was accepted yesterday! WOOP.

Thanks everyone for positing one this forum, has been really helpful reading all your stories. GL HF x

[Foggy]

Well done ! Just the dust to settle now

[Lisa Thomas]

Great news, well done.

[juniorb]

Did your IVA company request any additional documents after the creditors accepted your offer? Or you just paid the money and after received your completition certificate?