I don't understand the estimated divided...

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julie150
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by julie150 » Fri Jul 21, 2017 5:16 am
Settlement offer
I don't understand the estimated divided...
Estimated to receive It's says 51p
As opposed 24p...
Is that good or not so good?
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kallis3
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by kallis3 » Fri Jul 21, 2017 6:10 am
If you are paying back a larger dividend as a full and final then that's good.
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Foggy
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by Foggy » Fri Jul 21, 2017 6:39 am
It means that, when your IVA started, the creditors were expecting 24p for every pound you owed them ( so they would get repaid roughly a quarter of the debt ). The settlement you have, presumably, offered will give them 51 p for each pound -- so they will be getting twice as much as they signed p for --- half the debt repaid -- which is far better than expected.
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julie150
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by julie150 » Sun Jul 23, 2017 9:59 pm
Thank you for you reply.
Currently just about to go into 5th year and am in a 6 yr iva..
Paid 13 thousand already in to iva ...
Settlement offer is 13 thousand.( which was first asked for ...
They asked for a further figure of £5000 ( as equity in the house )
But stuck at 13 as it has only been offered from a family member ...
Due to the stress it's starting to cause me and have had to reduced my working hours )
Payments have just been reviewed and is less than £100 I was having to pay ..
( £530 down to £430)
Any advice would be good
Thanks
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Lisa Thomas
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by Lisa Thomas » Mon Jul 24, 2017 8:39 am
How much are your monthly payments?

Your offer should be based on the number of payments you have left multiplied by the amount you pay.

So if you have say 12 months left at £430 then the total amount you would pay if the IVA continued would be £5,160 so a settlement offer of c£5k would be very attractive.

I therefore don't understand at all why you have offered £13k or why they are asking for another £5k. This means you would be offering c£18k to settle c£5k!!

I am concerned for you - something is not right.
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Foggy
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by Foggy » Mon Jul 24, 2017 9:06 am
I agree with Lisa in that you do not need to offer more than the payments outstanding, so 12 months left plus 12 for equity (IF you are happy that you have more than £5k equity to trigger an extension). So 24 months at £430 = £10,320 (or, as Lisa quotes, half that if there is no extension) --- on that I would offer £9,000 -- £9,500.

Do not use the term "settlement", as this relates to a completely (and more expensive for you) different thing. What you are making is a "Full and Final Offer".
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julie150
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by julie150 » Tue Jul 25, 2017 9:07 am
Hi
Thank you for your reply.
My iva debt 33K
It's running for 6 years so I have 24 mth left ( payments have just been reviewed and from £534 down to £424

I have paid in over 4 years £12500 roughly
The settlement figure they gave me was £12800
( and after the looked at me equity and asked for a further £5000)
I have only still offered £12800 as from a 3rd party ( who I have only just informed of my situation)
51 p in the £ offered but in the original paperwork to creditors expected was 24p
I have reduced my hours a little hence to new payments down to stress and starting to impact on my life
Many thanks
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julie150
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by julie150 » Tue Jul 25, 2017 9:12 am
Hi
In the letter written it did state full and final amount to offer
Thank you for your responses
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Lisa Thomas
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by Lisa Thomas » Tue Jul 25, 2017 11:07 am
Settlement statement is completely different from a full and final offer. A settlement statement is how much you wil be to cover the balance of the entire debt, plus interest plus costs in full. That is not what you are trying to achieve.

Your IP will not be able to tell you how much to offer creditors - that is up to you to decide and creditors to vote on.

The more attractive the more likely they are to accept.

In this case an offer of say £8-£10k would be attractive as this is what you will be paying if you continue for 24 months.

I would retract the offer of £13k and offer £8k.

But before doing that have you clarified the equity in your property to ensure the extension will apply? If you have standard terms and can show you have less than £5k equitable interest then the extension will apply and you would likely only have 12 months left...
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Lisa Thomas
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by Lisa Thomas » Tue Jul 25, 2017 11:08 am
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julie150
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by julie150 » Tue Jul 25, 2017 12:41 pm
Hi

I said it was a full and final offer
And it's also stated in my confirmation letter from them.
I do know there is around 40 thousand in equity.

At the early beginning of the the iva
It was increased from 5 to 6 years
(Unsure of the reason why it was so long ago)
I'm wondering if there is a chance of it be accepted.
I suppose it depends on the day and who reviews it all.
Thank you
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Foggy
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by Foggy » Tue Jul 25, 2017 12:58 pm
julie150 wrote:
Hi

I said it was a full and final offer
And it's also stated in my confirmation letter from them.
I do know there is around 40 thousand in equity.

At the early beginning of the the iva
It was increased from 5 to 6 years
(Unsure of the reason why it was so long ago)
I'm wondering if there is a chance of it be accepted.
I suppose it depends on the day and who reviews it all.
Thank you



There is every chance of it being accepted -- the creditors are doing well out of it. Best of luck x
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kallis3
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by kallis3 » Tue Jul 25, 2017 1:03 pm
Good luck from me!
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Lisa Thomas
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by Lisa Thomas » Tue Jul 25, 2017 1:29 pm
Why would you offer £13k when the amount you would be paying over next 2 years is only £10k. Please think about this carefully and consider changing your offer!
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