I am looking to offer a full and final settlement towards my IVA. I currently owe 32 months of £394. What sort of offer should I give? A family member has agreed to pay the money either into my account or straight into the IVA.
Could they ask for more money than my original debt was at the beginning?
So, your creditors are looking at getting a further £12k by the end of the arrangement, assuming you are not a homeowner ( if you are a homeowner, this could be increased by a further 12 payments or equity release).
A full and final offer ( which is the more common method of closing early) is usually based on the remaining payments, and can often be reduced slightly to reflect time saved and "a bird in the hand being worth two in the bush". Alternatively, you can make a settlement, which is based on the remaining full original debt plus fees and possible statutory interest -- which is often far more than the F&F amount.
The amount of original debt also has to be considered as the amount the creditors are forgiving also affects the amount they are likely to add to that loss.
On the face of it I would say that an offer of around £9k or £10k would be looked at seriously but creditors have been known to accept low offers as well as refuse high ones.
Finally, the money will need to be paid from the donor direct to the IP, not via your account. The IP will need sight of the donors ID and a statement showing the existence and source of the funds, for money laundering purposes.
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