What would be a reasonable full & final offer on an IVA

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S.C.Taylor1989
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by S.C.Taylor1989 » Thu Apr 05, 2018 12:54 pm
Hi,
I have £9,900 outstanding on my IVA. I have not missed any payments so far and there have not been any changed in my circumstances. My family want to help me by offering a full and final settlement sum so that I can complete the IVA and start rebuilding my credit score.
They are able to get together £6000, at a push maybe £7000. Does this seem like a reasonable offer, or is this likely to be rejected?
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Foggy
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by Foggy » Thu Apr 05, 2018 12:58 pm
S.C.Taylor1989 wrote:
Hi,
I have £9,900 outstanding on my IVA. I have not missed any payments so far and there have not been any changed in my circumstances. My family want to help me by offering a full and final settlement sum so that I can complete the IVA and start rebuilding my credit score.
They are able to get together £6000, at a push maybe £7000. Does this seem like a reasonable offer, or is this likely to be rejected?



It depends on what you mean by "Outstanding" and how long you have to go. A F&F is normally based on the number of payments remaining multiplied by the current monthly payment amount ( plus 12 month if you are a homeowner). This can be rounded down a little to reflect admin savings (again depending on the actual payment amount .. as lower payments get eaten up in fees and give less wriggle room).
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Foggy
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by Foggy » Thu Apr 05, 2018 1:03 pm
Looking at past posts you have around 45 months left at around £220 per month, assuming the £9,900 is the total of payments still due to be paid). So, yes, a reasonable saving to be made. You could try the 6k, but my feeling is that it would be a little light --- but, you never know! If turned down you could try with the 7k, if you can raise it.
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Lisa Thomas
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by Lisa Thomas » Thu Apr 05, 2018 2:53 pm
If Foggy's estimate of your remaining payments are correct then an offer of £6k might be accepted by creditors.

Really hard to judge how they will vote.

The more attractive the offer the more likely they are to accept but no point offering more if you can get less accepted so start low, but if rejected then seriously reconsider how much to increase it by.
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