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.
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.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
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 http://foggy.blogs.iva.co.uk