I do not agree with my IP's calculation of F&F offer amount

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dan
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by dan » Fri Jan 26, 2018 8:52 pm
I want to make a full and finial settlement. my iva level is £5400. I started in the agreement by making payments of £90 and has now increased to £268.50. the iva have told me that I have to calculate my payment by the number of months, I did this and it bought me to nearly £12k this is way more than my debt and I think £3/4k should be a good enough offer, all the advice in the world welcome,

Thanks
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Foggy
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by Foggy » Fri Jan 26, 2018 9:28 pm
You need to tempt the creditors to agree to accept ----- this is done by offering near what they would get if you carried on in the IVA, which is the number of months remaining ( plus 12 if you own your home) multiplied by the current monthly payment.
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kallis3
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by kallis3 » Fri Jan 26, 2018 9:37 pm
Don't forget you will always owe 100% of your debt plus fees
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dan
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by dan » Fri Jan 26, 2018 9:40 pm
Foggy wrote:
You need to tempt the creditors to agree to accept ----- this is done by offering near what they would get if you carried on in the IVA, which is the number of months remaining ( plus 12 if you own your home) multiplied by the current monthly payment.


Hi foggy thanks for the response. My issue is that my debt was only £5400 ive paid nearly £2k in already, and because i had a pay increase my payments have increase so if i were to do that calculation the amount would be 12k do i really need to pay more than i owe. i have no property and no assests.
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Foggy
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by Foggy » Fri Jan 26, 2018 9:53 pm
Your IVA will stop when you hit the total of full debt plus fees and statutory interest. On a £5400 debt this would be around £2,500 fees and disbursements and around £430 per year interest.

How long have you been in the IVA ?

Working on 2 years just for illustration -- to clear the lot would take about £8760 --- less the £2000 you have already paid in would leave £6760 tp pay / offer
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dan
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by dan » Fri Jan 26, 2018 10:02 pm
so and offer of £4000 is likely to be declined?
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kallis3
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by kallis3 » Fri Jan 26, 2018 10:12 pm
You can only ask.
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dan
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by dan » Fri Jan 26, 2018 10:16 pm
thanks kalis
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Foggy
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by Foggy » Fri Jan 26, 2018 10:33 pm
dan wrote:
so and offer of £4000 is likely to be declined?


Depends on what sort of time you are knocking off the clock as you will be saving them administration costs, so you can round it down a little.
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dan
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by dan » Fri Jan 26, 2018 10:36 pm
Hi foggy so ive only just started the second year on my iva I'm 17months in
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Foggy
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by Foggy » Fri Jan 26, 2018 10:42 pm
dan wrote:
Hi foggy so ive only just started the second year on my iva I'm 17months in


OK -- considering that you will be making a couple of more payments while the offer is prepared, the interest element will be a trifle lower, you might get away with £4k. Certainly worth a try.
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dan
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by dan » Fri Jan 26, 2018 10:45 pm
Thank you very much foggy its been very helpful talking to you
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Foggy
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by Foggy » Fri Jan 26, 2018 10:52 pm
dan wrote:
Thank you very much foggy its been very helpful talking to you


You are welcome.

Good luck with the offer.
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Lisa Thomas
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by Lisa Thomas » Mon Jan 29, 2018 4:27 pm
Make sure you ask the right question as 'settlement' figure and full and final are two completely different things!

See video here for some basics:

https://youtu.be/h4dozq9aGak
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kallis3
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by kallis3 » Mon Jan 29, 2018 5:50 pm
You need to offer it as a full and final offer.
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