Lump sum offer

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

rosepetal1

Posts: 4
Joined: Mon Feb 15, 2021 7:07 pm

Post by rosepetal1 » Mon Feb 15, 2021 9:50 pm
I am in my first year of IVA and have a monthly payment of 330£ my full debt was around 83000£ I won a property but no equity left there now because of Corona Things are not as it was planned
My question can I pay a lum sum and how much is a reasonable amount to offer which may accepted as amount will come as support by family member non returnable

rosepetal1

Posts: 4
Joined: Mon Feb 15, 2021 7:07 pm

Post by rosepetal1 » Mon Feb 15, 2021 9:54 pm
Mon Feb 15, 2021 9:50 pmrosepetal1 wrote:
I am in my first year of IVA and have a monthly payment of 330£ my full debt was around 83000£ I own a property but no equity left there now because of Corona Things are not as it was planned
My question can I pay a lum sum and how much is a reasonable amount to offer which may accepted as amount will come as support by family member non returnable

Foggy

User avatar
Forum Expert
Posts: 32047
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Tue Feb 16, 2021 7:57 am
Afull and final offer is based on remaining payments. As you are a homewowner, it is customary to add in the 12 extra payments in lieu of equity release. I know you say you have no equity at the moment, but the creditors will be looking at whether there will be any at the end of the arrangement --- things change.

So, you have, let's say you are at the end of the first year ( some IVA's have a clause barring early payments in the first 6 months or first year). You will have 48 + 12 payments left ....So 60 x 330 = 19,800. Of course, if you can make the creditors accept that there will be no equity coming, you could try to knock off those 12 extra payments, meaning the offer would be based on £15,840 (48 x 330)

Bearing in mind that you would be saving everybody 4 or 5 years of messing about with dividends, you have room to reduce this a little ---- but, of course, the higher the offer the more chance it will be accepted. I have seen very low offers accepted, yet very high ones refused ! Were it my IVA, I would go in with around £15k, including those 12 months ( or £12k without the equity element --- which would be a harder sell).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

rosepetal1

Posts: 4
Joined: Mon Feb 15, 2021 7:07 pm

Post by rosepetal1 » Fri Feb 26, 2021 1:17 am
Thanks I will try the 15k rule.thanks for the help

luluj

User avatar
Forum Expert
Posts: 11027
Joined: Sun Dec 09, 2007 6:54 am
Location: United Kingdom

Post by luluj » Fri Feb 26, 2021 1:52 am
Good luck- let us know how you get on
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"
5 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”