Full & Final offer

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Nakedguru

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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

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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.
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Foggy

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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

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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

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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

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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

Nakedguru

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Post by Nakedguru » Sat Mar 14, 2020 5:08 pm
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 :D

Foggy

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Post by Foggy » Sat Mar 14, 2020 5:41 pm
Well done ! Just the dust to settle now :-)
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

Lisa Thomas

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Post by Lisa Thomas » Mon Mar 16, 2020 10:16 am
Great news, well done.
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

juniorb

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Post by juniorb » Tue Sep 15, 2020 8:45 pm
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?
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