Im currently in IVA arrangement which a family member has offered to settle the IVA, But Im unsure what to offer to the IVA firm. The total contribution of the term is £27,732. ( £152 x 50 months then £453 x 10 months and £15,602 equity from my house. Which Ive made 11 months payments already so bringing the total outstanding contribution to £26,030, If someone could give me what sort of offer I should make to the IVA firm I would most grateful of any advice. Thanks
This payment in lieu of equity does depend on the actual wording of your equity release clause .... it is very unusual, these days, for an amount to be specified from the start, so this would need examining.
As you will be saving the creditors and IP a lump in administration costs it is usual to be able to shave the lump sum a little. Based on my figure od £15894, I would be inclined to offer something in the region of £12.5k. IF the outstanding amount is as you calculated (with the set equity release figure) I would say an offer around £22k.
Obviously the better the offer, the better the chance of success. I have seen much lower offers accepted, as well as more generous ones refused.
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