Should me IP be able to offer me a settlement figure on my IVA?

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by jenny » Wed Feb 14, 2018 11:18 am
I am just coming to the end of a 5yr IVA and have requested a settlement figure but have been told there is no such thing. Is this correct? I am now being asked to remortgage another £10,000 (second charge mortgage) but am concerned that my settlement figure may be less than this. My debt originally was 28K but by my calculations from PPI refund of 10K and 5 years repayment at £295 I will have paid £27,700 leaving a £300 deficit. Also do I have to accept select partnership offer or can I obtain my own?
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by Foggy » Wed Feb 14, 2018 11:47 am
A second charge ( secured loan) is not the same thing as a remortgage --- if a remortgage is not available then the 12 month extension should be applied. However, if a remortgage is available (unlikely but not impossible) then a secured loan would work out much cheaper in the long run. So do look at all options. You do not have to use Select, but they are very good at what they do.

Settlement figure : A Settlement is to pay off all the original debt, plus fees and possible statutory interest and, because of the interest element, varies daily. Many firms are reluctant to give these figures out because they vary daily and take a bit of working out -- but they can do if a serious offer to pay up everything is forthcoming. What you really need is to make:

A Full and Final offer: The IP cannot give you this figure as it is your offer to make. It is based upon the number of remaining payments multiplied by the current monthly amount. If you own a property the 12 month extension is added in and taken as it though it would be applied in the normal run of the IVA - so add 12 payments.

Now --- you should never pay more than the full debt, fees and interest --- a rough, back of a fag packet, figure would be around: Debt of £28k, fees around £6000 and £11,000 statutory interest. So £45k in total.

So roughly -- a settlement figure would be £45k less the nearly £28k already paid ---- £17,000 whereas a F&F offer, assuming say 4 months left and then an extension, so 16 months at £295 ---- £4,720
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Lisa Thomas
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by Lisa Thomas » Wed Feb 14, 2018 12:32 pm
My short video should answer your query but let me know if you have more:
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