Will my Full and final offer of £11,000 be accepted?

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by rob347 » Sun Oct 29, 2017 1:58 pm
Hi , I'm currently 2 years into a 5/6 yr IVA , my current monthly payments are £220 rising to £470 for the last 18 months once my car finance has finished. I recently changed jobs and now on a lower salary ,£7,000 pa less, as a result will struggle with my IVA putting it in serious jeopardy.

I have worked out my remaining payments on my 5 year term will be £11,860, I am going to put forward an offer of £11,000 as a full and final settlement this money is coming from my partner as a gift. As it may take some time to get finalised and will still be making payments so the offer will be very close to the what's left to pay.

I do have a house and have a 12 month extension clause but due to a big drop , some 20%, in house prices in my area I am in negative equity and will be for some time, proof of this can be found online, recent estate agents valuation and my recent mortgage statement.

My question about my offer, is it a good offer, under my current circumstances, does it stand a good chance of being accepted? And about the 12 month clause regarding my house is this relevant due to me being in negative equity?

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by Foggy » Sun Oct 29, 2017 3:06 pm
Assuming the figures on the property stack up to show that the equity clause will be unlikely to be triggered in a few years time I think an offer of £11k is a generous one. Considering there will be a few more payments to be made (if you are with one of the slower firms I might consider popping in a condition that payments made after a given date will be deducted fro the lump sum). As well as this both creditors and IP will be making savings on administration as well as removing toxic debt from their books. There is also a big "bird in the hand" advantage due to your diminishing income.

Although you can never second guess the outcome of such offers, I would go in with an initial offer of £10k, if it was my IVA, aiming aniron clad equity release exclusion.

Do not go so far as to describe the lump sum as a gift --- suffice to say they are third party funds which, in the event of the offer being rejected, will be retained by the donor and will not then be available.
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