I'm 3 years into my iva and I was reading someone's story about how they got a cash settlement accepted before the iva ended my question is is there a % of debt you have to go by for example if you owe £20000 would it be acceptable to offer £5000
It is usually your remaining payments (plus 12 months if you have an equity release clause) although sometimes a creditor will accept less.
It is also a full and final payment, not a settlement as this means you pay back 100p in the pound plus fees and possible statutory interest.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
There is no accepted percentage, but the usual aim for a full and final is to pay creditors what they are expecting under the arrangement. This can be rounded down a little depending on the initial dividend estimate.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
