Guidance required on full and last offer

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Post by tobacare » Sat Apr 24, 2021 6:12 am
Hi all,

Before I contact my IVA Supervisor for exhortation I figured I would look for guidance on this gathering.

My circumstance is as per the following:

I'm moving toward the finish of my first year of a long term IVA on unique obligations of £47,000. My arrangement requires a base profit of 45p in the pound to leasers with an expected profit of 53p in the pound which incorporates a singular amount installment in year 4 of least £8000 on value discharge from my common possession level. The Nominees and Supervisor expenses on top of this are approx £8000 including requesting of loan bosses costs, limitation on property costs and so on My assessed complete commitments over the 60 months is £33,800. My present month to month commitments are £430. I have paid approx £4600 hitherto into my IVA.

My Abbey contract on my common proprietorship level (I own 75%) is revenue just and I as of now pay £410 each month. The fixed rate I initially got is because of end in a month's time and I have reconsidered my home loan at a fundamentally higher financing cost fixed for a very long time (since I am in an IVA and on account of ongoing expansions in loan fees they wouldn't give me a superior rate). My regularly scheduled installments on my home loan will ascend to £570 in November, an increment of £160 each month.

Clearly I can't bear the cost of this increment so I should advise my Supervisor regarding this reality and I assume they should re-survey my month to month commitments. Nonetheless, a dear companion who I have trusted in has offered to loan me a single amount as a full and last settlement, in spite of the fact that I don't know the sum they have offered is adequate. My inquiry is, what might be a reasonable and worthy add up to offer as a full and last settlement?

Any assistance would be quite valued,
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Post by luluj » Sat Apr 24, 2021 6:52 am
Any change in circumstances should be notified to your iva company. A change in outgoing such as the increase you describe should resort to a review of your ability to continue to pay.

With regards to you offering a full and final coming from a third party- the easiest way to consider what a reasonable offer is, is to calculate

monthly payment x months left, then add £8000 for the add-onn you describe.

You then need to consider fees - you can reasonably reduce these in your offer as you would effectively looking to close 4 years earlier than planned.

By my calculation based on your current monthly payment of £430

48 x £430 = £20,640
Plus £8000
Plus fees £8000

Total = £36640

You could try an offer of £30k in my opinion as it would mean creditors receiving their money alot earlier than planned, but you would need to make it very clear that if offer declined you would not have access to this money from the third party.

If approved, your iva would remain on file for the full six years from its start date.
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Post by Foggy » Sat Apr 24, 2021 8:47 am
I trust you can understand this reply. I am afraid that my Vietnamese is non-existent !

I would approach it differently : Based on 48 payments left at £430, plus 12 in lieu of equity release means the creditors stand to get a further £25,800, assuming nothing changes. So your offer should be based on that.

Of course, if your mortgage payments increase and your IP agrees to reduce your IVA payment accordingly, this figure could be reduced.

Regarding the fees quoted and the equity release figure quoted, much would depend on the actual wording of the clauses in your proposal and, more importantly, any changes to this in your Chairman's Report of the initial meeting. These are often amended or are estimates only.
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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