How I should calculate a reasonable full & final offer amount?

Get expert opinion. This is the place for new questions to be posted.
4 posts Page 1 of 1

Cupcake08

Posts: 3
Joined: Sat Jan 20, 2018 3:31 am

Post by Cupcake08 » Tue Mar 27, 2018 6:20 pm
I am 2 years into my IVA and have equity of approx £18k in my shared ownership property. I currently pay £190.00 per month. I am considering my options and want to understand how I should calculate a reasonable full & final offer amount?

Foggy

User avatar
Forum Expert
Posts: 28148
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Tue Mar 27, 2018 7:11 pm
Basically you need bate amount on what the creditors are expecting to collect over the term of the IVA. In your case you have 3 years left to run (assuming a 5 year arrangement) so 36 payments. With the equity you have they would be expecting a 12 month extension (assuming inability to release equity, therefore make that 48 payments at £190 = £9120. You can deduct a little to reflect the savings they will make in administration, plus the value of the "bird in the hand", so maybe an offer iro £7.5k to £8k. You might get away with a lower offer, or might need a higher one -- it is an unpredictable game ! I have seen both low offers accepted as well as high ones refused.

Best of luck.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Visit my blog here : http://foggy.blogs.iva.co.uk/

luluj

User avatar
Forum Expert
Posts: 10398
Joined: Sun Dec 09, 2007 6:54 am
Location: United Kingdom

Post by luluj » Wed Mar 28, 2018 2:45 am
Great advice from foggy - hard to predict creditors views as each case is individual. If it were me I would offer £8k and see how it goes.
Sharing from experiences of dealing with debt

There is a solution for everyone .... Just need to stay positive !

Look at my blog "All I wanted was a baby"

Lisa Thomas

User avatar
Industry Expert
Posts: 7268
Joined: Wed Dec 03, 2014 10:26 am

Post by Lisa Thomas » Wed Mar 28, 2018 8:30 am
You could start with an offer of say £7k - and always increase if creditors reject but don't tell them you can afford more in the first instance or they will ask for more....
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
4 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”