Help with full and final settlement

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Gazabulldog16533
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by Gazabulldog16533 » Sat Jul 01, 2017 12:45 am
Hi everyone im new to this forum and im just wanting some advice im two years into an iva and have £5380 left to pay through hanover insolvency im currently really depressed with all this to the point of suicidal thoughts alot of the time a family member has offered to gift me £1500 to make a full and final settlement what are the chance they will accept this and ive had a reduced amount of wages by a £300 any help would be grately appreciated thank you in advance and is it worth going to the doctors for a letter on my depression
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Foggy
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by Foggy » Sat Jul 01, 2017 8:55 am
Hi. First of all -- with reduced income, you need to request a review to see if your IVA payments can be reduced going forward. This wiill reduce the amount the creditors are expecting to see returned over the term. Then you can base a F&F amount on the new "amount payable", £1500 to cover £5380 strikes me as a little light, as things stand.

As with all things like this, compelling reasons, such as health, are all helpful in supporting your arguement and a letter from the doctor can only help. Hopefully your IP will be supportive and I would suggest having a frank chat with him / her to discuss your options and pave the way.
Gazabulldog16533
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by Gazabulldog16533 » Sat Jul 01, 2017 11:30 am
How much do you think would be a reasonable amount to pay?
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Foggy
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by Foggy » Sat Jul 01, 2017 11:38 am
Gazabulldog16533 wrote:
How much do you think would be a reasonable amount to pay?


At your current repayment level, if the creditors are expecting £5380 over the next 3 years ( and assuming you have no equity to be looked at), taking into account the savings in administration they will be making, I would guess, and it is only a guess, at an offer around £4,000 being looked at seriously. That said, I have seen low offers accepted, as well as high ones refused.
Gazabulldog16533
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by Gazabulldog16533 » Sat Jul 01, 2017 4:59 pm
Cheers foggy im going to offer low about £1500-2000 from what will be gofted to me and based on my mental health at the moment i will be straight with them explaining that due to my health i may refer to going bankrupt and from doctors advice to being off sick for a good while
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Foggy
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by Foggy » Sat Jul 01, 2017 5:24 pm
Gazabulldog16533 wrote:
Cheers foggy im going to offer low about £1500-2000 from what will be gofted to me and based on my mental health at the moment i will be straight with them explaining that due to my health i may refer to going bankrupt and from doctors advice to being off sick for a good while



Make it clear that the funds are from a third party and are only for the purposes of a F&F -- it the offer is rejected the money will be retained by the third party and will not be available for the creditors.
Best of luck.
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