Lower settlement offer?

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Danieldw54

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Post 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

Foggy

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Post 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.
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/

Foggy

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Post 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.
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/

Lisa Thomas

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Post 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
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

Danieldw54

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Post 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

Foggy

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Post 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.
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/

Lisa Thomas

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Post 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.
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

Danieldw54

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Post 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

Foggy

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Post 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.
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/

Lisa Thomas

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Post 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
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
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