Full & Final offer

6 posts Page 1 of 1

Nakedguru

Posts: 2
Joined: Mon Feb 10, 2020 11:44 pm

Post by Nakedguru » Mon Feb 10, 2020 11:52 pm
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

User avatar
Forum Expert
Posts: 10752
Joined: Sun Dec 09, 2007 6:54 am
Location: United Kingdom

Post by luluj » Tue Feb 11, 2020 5:04 am
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.
Sharing from experiences of dealing with debt

There is a solution for everyone .... Just need to stay positive !

Look at my blog "All I wanted was a baby"

Foggy

User avatar
Forum Expert
Posts: 30301
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Tue Feb 11, 2020 7:54 am
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.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Nakedguru

Posts: 2
Joined: Mon Feb 10, 2020 11:44 pm

Post by Nakedguru » Tue Feb 11, 2020 10:33 am
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

User avatar
Industry Expert
Posts: 7704
Joined: Wed Dec 03, 2014 10:26 am

Post by Lisa Thomas » Tue Feb 11, 2020 11:09 am
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
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk

Foggy

User avatar
Forum Expert
Posts: 30301
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Tue Feb 11, 2020 11:12 am
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.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk
6 posts Page 1 of 1
Return to “full and final settlements”