Lower settlement offer?

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Danieldw54
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by Danieldw54 » Tue Nov 06, 2018 7:04 am
I have a 5 year iva with option of 1 year
a family member as said they will pay of iva
I have asked for full and final and they have said it will be £10300 I pay £272 per month can we offer less
over the time scale there was a ppi payment of £35000 and I paid in £7000 from a ppi I was sorting before I took it out
debt at start was £52000 so there as been a lot paid in
any advice
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Foggy
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by Foggy » Tue Nov 06, 2018 7:46 am
It is rare that an IP will give you a full and final offer figure -- it usually has to come from yourselves. How many payments do you have left ? With the PPI paid in on top of your regular payments this figure they quote might be a settlement figure ---- the amount needed to take you to having paid the original debt, fees and interest in full.

You are free to offer a lower figure, but, of course, your creditors are free to decline.
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Foggy
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by Foggy » Tue Nov 06, 2018 9:16 am
Just roughly ----VERY roughly. You have been in the IVA for around 4 years now (so have 2 left with an equity extension)

You have paid in around £13k in repayments, £42k in PPI (before or after claims company fees ?--- I will assume they have to be taken off ). After fees around £30k would have hit the IVA pot. So ---- £43k paid in and around £6.5k to pay if the IVA runs to term. What happened to the inheritance ?

To hit full repayment, with fees and interest, on a debt of £52k, would need something like £77k ( so another £34k).

So, unless I have missed something, like the inheritance, or maybe statutory interest has been excluded, I can't see where they have got their £10k from.

On current repayment amount the creditors are expecting £6.5k IF the equity clause kicks in and the IVA runs to term.
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Lisa Thomas
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by Lisa Thomas » Tue Nov 06, 2018 10:10 am
I'd be surprised if an IP is giving you a 'full and final figure' as it's up to you to decide how much to offer creditors.

They could however give you a figure of your remaining contributions/assets they expect to be paid in to the end of a successful term, which would give you a starting point for any offer you may want to make or they could be giving you the settlement figure, which is a completely different kettle of fish, as Foggy has explained above.

Watch my video here for a bit more detail:

https://youtu.be/h4dozq9aGak
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Danieldw54
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by Danieldw54 » Wed Nov 07, 2018 6:45 am
I rang this time last year for a full and final and they quoted 10800 this year I spoke to the same lady and she quoted 10300 I don't understand
is there any one in my area who I can get advice from west midlands
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Foggy
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by Foggy » Wed Nov 07, 2018 7:46 am
Who are you with ? For a F&F you need only base your offer on the amount of repayments left outstanding.
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Lisa Thomas
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by Lisa Thomas » Wed Nov 07, 2018 10:41 am
Assuming you have a contributions based IVA and no other assets to inject, how many payments are left and how much do you pay?

That figure is your starting point for any F&F.
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Danieldw54
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by Danieldw54 » Fri Nov 09, 2018 7:29 am
Lisa Thomas wrote:
Assuming you have a contributions based IVA and no other assets to inject, how many payments are left and how much do you pay?

That figure is your starting point for any F&F.

I have 1 year left with poss extension which I don't under stand I pa £272 month
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Foggy
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by Foggy » Fri Nov 09, 2018 7:46 am
Danieldw54 wrote:
Lisa Thomas wrote:
Assuming you have a contributions based IVA and no other assets to inject, how many payments are left and how much do you pay?

That figure is your starting point for any F&F.

I have 1 year left with poss extension which I don't under stand I pa £272 month


The possible extension is because you are, presumably, a home owner and thuis is instead of releasing equity ( It is all in your paperwork).

Anyway, with 24 payments left at £272. your creditors will be seeing a further £6528 from you. This is all you need to offer so that they get what they are expecting.
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Lisa Thomas
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by Lisa Thomas » Fri Nov 09, 2018 9:20 am
Read your proposals to understand the year extension - it tends to kick in if you have more than £5k share of equity in your property.

If you can prove you do not (get a valuaiton and redemption statement) then it shouldn't apply and you may then only have 12 months left.

More info can be found in my brief video here:

https://youtu.be/PHfc85n39U4
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