Full & Final offer

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gemma685

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Post by gemma685 » Wed Apr 01, 2020 6:04 pm
We’re possibly getting money from family for a full and final offer. Our original amount of debt is £21000, our iva started in September 2018 and we agreed with our creditors to pay off £9739 over the 5 years. So far we have paid about £3588.

We have got advice from our IP and we’re expected to release £8407 equity in the 5th year.

We’re looking at submitting a F&F of £12000.

Do you think this is a good offer?

gemma685

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Post by gemma685 » Wed Apr 01, 2020 6:15 pm
Hello,

I got my figures slightly wrong in the post.

The original amount was for £21000

The agreement payment over the 9 years is £9739.

We have paid £4038 already.

We have an expected £8407 equity to release.

The offer of £12000 includes the remaining £5701 and £6299 of the equity

luluj

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Post by luluj » Wed Apr 01, 2020 7:07 pm
If it were me and taking into account time between now and when offer accepted , the fact house prices will have fallen due to the current pandemic and you will have paid z few more payments, I would be tempted to go in with an offer of around £9 to £10k.
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Foggy

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Post by Foggy » Wed Apr 01, 2020 7:15 pm
So, you are making payments of around £160 a month ? You have around 40 payments of the 5 years left, so the creditors are looking at around a further £6400 in regular payments.

Equity, estimated at £8704..... This figure is, at best, a 'Mystic Meg Crystal Ball Prediction'. Covid could blow the economy and there be no equity, come the time. It is a fanciful guess! The only figure they could predict with any certainty would be, if you have enough equity to even trigger the clause in a few years, the 12 months extension in lieu of release, so £1920.

Most F&F offers are based on remaining payments, plus the only certainty of a 12 month extension for home owners --- in your case a total of £8320.

That, plus the £4k you have already paid, will give the creditors in the region of half the debt back, which is a healthy return from an IVA.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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