What offer should I make to settle my IVA

Get expert opinion. This is the place for new questions to be posted.
6 posts Page 1 of 1
User avatar
danny118
Posts: 1
by danny118 » Tue Aug 07, 2018 6:52 am
Hi there

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
User avatar
Foggy
Forum Expert
Posts: 26593
Contact
by Foggy » Tue Aug 07, 2018 8:35 am
It is not guaranteed that you would be able to release £15k equity, so calculations at this stage would be based on monthly payments plus 12 for equity. So, the creditors would be looking at getting around 39 payments at £152, 10 at £453 plus the 12 for equity at £453 also --- so ..... £15894.

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.
User avatar
Lisa Thomas
Industry Expert
Posts: 6795
Contact
by Lisa Thomas » Tue Aug 07, 2018 10:26 am
How was the £15k from the house due to be obtained?
User avatar
kallis3
Forum Expert
Posts: 73311
Contact
by kallis3 » Tue Aug 07, 2018 11:24 am
He says it is from a family member.
User avatar
Lisa Thomas
Industry Expert
Posts: 6795
Contact
by Lisa Thomas » Tue Aug 07, 2018 12:26 pm
Hi Kallis I am referring to the original equity quoted, not the settlement monies...?
User avatar
kallis3
Forum Expert
Posts: 73311
Contact
by kallis3 » Tue Aug 07, 2018 12:37 pm
Sorry - it just read like that.
6 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: No registered users and 17 guests