I’ve been in my IVA for a year. Our total amount of debt in the IVA is £20000 and over the course of the 5 years we agreed to pay back £9738. We have already paid £2388 leaving £7350. Our family are willing to give us £8000 to settle. Do you think this would be accepted? Our IP told us that we’re expected to release another £8407 equity in the final year so that’s making me think it wouldn’t get accepted
As you have a property with equity release on the horizon it is customary to add 12 months payments to a full and final offer --- so, in fact, creditors are expecting a further £9738 (at this point they cannot guarantee that you would be able to release any equity). So, an offer of £8,000 might still be looked at favourably, considering that they will be saving the costs of dealing with small payments over the next 5 years (including the extra year). Personally I would have gone in with £8.5, but I have seen low offers accepted (as well as generous ones refused).
BTW -- it is not a 'settlement' you are offering ( that is full debt plus fees and possible statutory interest) but a 'full and final' offer.
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
I agree with foggy £8.5k maybe seen more favourable. Also be ready to explain why you want to offer full and final, and that the money is only available for the purpose of a full and final otherwise you won't have access to it.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !