Full & Final offer

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robin726

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Post by robin726 » Mon Apr 19, 2021 7:22 am
My son took out an IVA as he had debts of £8695 which he was unable to pay back.
The total including the practitioners fees was £12345
This was to be paid back over 60 months at £110.
Total £6600
He has already £1,430.
We have offered to help him pay it off as it is affecting his health.
How much do you think we should offer as full and final settlement?

Foggy

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Post by Foggy » Mon Apr 19, 2021 8:06 am
A full and final offer is usually based on remaining payments and can also be trimmed a little for time saved ( and expenses saved). In this case you are saving a little under 4 years and creditors are expecting to see £5170 (assuming your son either rents or lives with you --- if he owns a property the IVA could be extended for equity release purposes and an extra 12 months payments will need to be factored in).

As you will appreciate, this is pure guesswork -- I have seen low offers accepted as well as high ones refused --- but I would say an offer around £3,500 - £4,000.

Do not be afraid to mention the toll on your son's mental, as well as physical, health -- made worse by the addition of the pandemic and it's ramifications over the last year or so.

The money would need to be paid to the IP, directly from you and the IP will need to see evidence of your I.D and a statement confirming the funds are ready and waiting. State in your offer that this money is for the purposes of a full and final only and, should the offer be rejected, it will be retained by you and will no longer be available.
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

robin726

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Post by robin726 » Mon Apr 26, 2021 12:55 pm
Thank you very much for your valuable guidance in this matter.

We put in an offer of £3800 and today received an email stating the below.

‘Thank you for your email. I am sorry to hear about situation and completely understand your concern.
Please be advised that I have raised an IP query to have an approved amount for the Payment in Full figure/ settlement figure.’

I will let you know how it ends.

Thank you again

Foggy

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Post by Foggy » Mon Apr 26, 2021 1:26 pm
Tread carefully ---- it sounds like they are asking the IP for a settlement figure, which is the remaining balance of the original debt plus fees. This will be more than a Full and Final Offer figure, as previously discussed. Be clear with them that you want to make a full and final offer ( the amount of which you decide) not a settlement ( the amount of which they decide).
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
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