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

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Cupcake08
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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?
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Foggy
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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.
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luluj
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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.
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Lisa Thomas
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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....
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