Full & Final Settlement Offer

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Roman101
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by Roman101 » Sun Mar 25, 2018 10:32 pm
Hi Guys,

After some advice I have been in my IVA 8 months and have been making payments of £167 a month. Me and my partner are looking to move abroad potentially end of the year. She has offered to help pay off the IVA just wanted to know what sort of ballpark figure should we be offering them? My original debt was £20,500.

Thanks for the help :)
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Foggy
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by Foggy » Mon Mar 26, 2018 8:29 am
Hi --- I am assuming that you have a standard 5 year IVA and rent your home ( so no equity to deal with):

You have 52 payments left ... by the time the offer is going through, probably 50 months @ £167. So .... your creditors are expecting another £8350 from you over the next few years. Your offer needs to be as close to that as possible, to make it attractive. But, over the 50 months the creditors will be saving a bit in admin costs, so you can round it down a little. I would say to offer around £7000. Some might go as low as £6000 and you could try that first time and up the offer if they refuse ... but you can only increase your offer once or twice, otherwise they will feel like you are messing them around and not making the best offer you can.

Remember --- this is a Full & Final Offer --- not a settlement ( that is a different and much more expensive thing).

Best of luck.
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Lisa Thomas
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by Lisa Thomas » Mon Mar 26, 2018 8:43 am
I agree with Foggy - the more attractive and close to the original repayments that you were going to make, the more likely creditors are to accept it.

Bear in mind they will say about 4 years worth of time and administration costs.

Best of luck.
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Lisa Thomas
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by Lisa Thomas » Mon Mar 26, 2018 8:43 am
*save
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plasticdaft
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by plasticdaft » Mon Mar 26, 2018 9:45 am
Good luck with the offer. As mentioned it has to be attractive in that it offers a decent return on what they would get should the iva run full term.

Paul
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