settling advice please

debtmeoutofhere

Hi

I have two years left to run on my IVA, My div was 62p in £, on unsecured 37k ith £511 monthly payment. I have no equity or property etc and I also have to date zero contact with my IP, it has all been done via forms. The company even changed hands during IVA so not sure if I changed IP too. I have a family friend who is willing to help me settle early. I would like to take this step, however I have no idea what the best approach is.
Do I offer value of the next two years IVA payments. 12k or do I propose a lesser settlement figure.
Is there room to negotiate the figure with the IP or do I have no room for negotiation with an IP, Would the IP give me good advice with this or do I go in blind with a figure based on what is reasonable ? How long would it take to get settlement agreed ?

I just want out asap and don't want to risk a rejected offer, particularly in light of the 500 mtg fee I have read on this site. All replies appreciated

happychappy74

Hi.

Firstly, dont worry about the £500 fee for the meeting. That is deducted from the creditors amounts, not from your pocket. If you make an offer then this fee is just part of the process which keeps them in the money.

Like you I had no idea what was a reasonable offer so the offer put forward was for approx 42% of the remaining payment amount. It is an offer made by the third party and the company will assess whether it is reasonable enough to put forwards, it is not really a discussion or arrangement as such. A meeting will be arranged to cater for a 28 day period upon which all the creditors will vote. That is the only time you will know anything as your company really wont know where you stand as it is not up to them, so dont be put off.

I had an opportunity to make an offer, which I was unsure about, but it turned out well. If it was rejected then there is nothing stopping you trying again in a few months.

I hope it all works out for you.

debtmeoutofhere

Thanks for your response.

I may sound silly however IVA has managed to cabbage my normal thinking processes.

If a friend had to produce a letter to confirm their financial support for the amount of the proposed 'settlement figure' What do they need to include ?

Granted I expect they have to confirm that they are in a position and are also agreeable to paying the 'proposed' settlement figure (with the condition it is for IVA settlement only ) .

However would anything else need to be included in their letter ?

Thanks

happychappy74

I was told I needed to send a letter in stating that the identified third party was in a position to offer a full and final settlement of my IVA at that time.

I was asked for the third party to send a letter in just stating that they are able to provide the offered amount, and that the funds are available.

There is a threshold where checks will need to be made in light of money laundering apparantly, you will need to check the details of this.

The IVa company will then make the proposal in the form that it is a full and final offer and that the offer would be withdrawn at the time should it be rjected so that the creditors cannot eye it up as an extra chunk of money.

Doglover

Like you I had no idea what was a reasonable offer so the offer put forward was for approx 42% of the remaining payment amount. It is an offer made by the third party and the company will assess whether it is reasonable enough to put forwards, it is not really a discussion or arrangement as such.

Hi, do you mind me asking . . . was the 42% you offered that percentage of what your payments until completion would have been or was it 42% of the total amount outstanding?

My husband is at a similiar stage with his IVA (completes in Oct 2010) and we're looking to finish it early. We are unsure how much we need to offer and how best to calculate it. His current monthly payments are approx £400pcm so would you suggest offering 15 months worth of £400 (£6000) or should we offer more or less?

Any suggestions or advice would be great. The IVA is with Debt Free Direct so any experiences had by anyone in offering F & F with them would be good to hear - good or bad!

Thanks

leeds4ever6

hi there. my friend had 14500 left to pay and he offered 5000 and it was accepted by all creditors.

Doglover

leeds4ever6 wrote: »

hi there. my friend had 14500 left to pay and he offered 5000 and it was accepted by all creditors.

Do you mind clarifying if the total outstanding was £14500 or the equivalent amount of what the total monthly payments left would have amounted to.

Thank you

a2062cad

Its worth remembering that the IP is there to find the best solution for both you and the creditors so will use their skill and judgement when assessing your offer. I personnally think you can position a little lower with the IP and try and read how prepared they are to put that proposal forward. Start low and sound a little "maybe its possible" and see where they suggest the next £ level is. This may guide you to where you stop and say to the IP this is the maximum my family friend can offer.

good luck

happychappy74

The 42% outstanding that I mentioned was a % of the total amount of my payments until the end of the IVA, not the total owed initially (as I would probably sit down crying no doubt!).

It wasnt based on anything in particular. It was just a reasonable estimat of what would hopefully be accepted weighing up the amount owed / the time outstanding / the IP fees.

I did ask for what would be favourable but the decision is up to the creditors at teh end of the day. I was told 2 things during 2 separate telephone calls to 2 different peopel in the same company.

1 - A reasonable offer would be considered and probably accepted.
2 - I should offer as close to the full amount as possible, if not the full amount.

The option was there to take a chance...so I did. I am so glad now.

Weigh it up. Make the offer. If it doesnt get accepted then try again.

Fingers crossed for you.

Doglover

happychappy74 wrote: »

The 42% outstanding that I mentioned was a % of the total amount of my payments until the end of the IVA, not the total owed initially (as I would probably sit down crying no doubt!).

It wasnt based on anything in particular. It was just a reasonable estimat of what would hopefully be accepted weighing up the amount owed / the time outstanding / the IP fees.

I did ask for what would be favourable but the decision is up to the creditors at teh end of the day. I was told 2 things during 2 separate telephone calls to 2 different peopel in the same company.

1 - A reasonable offer would be considered and probably accepted.
2 - I should offer as close to the full amount as possible, if not the full amount.

The option was there to take a chance...so I did. I am so glad now.

Weigh it up. Make the offer. If it doesnt get accepted then try again.

Fingers crossed for you.

Sorry, can I just make sure I've understood you correctly:

Our current monthly payments are £400 and there are 15 more payments left which would be £6000 in total.

Are you saying that they accepted 42% of your version of £6000 i.e. £2520?

Was it your first offer?

Cheers

happychappy74

Yep. Thats it. 42% of what my remaining payments were.

That was the first offer at the time and I was glad that it was accepted. I kind of expected them to reject it, but it was voted in favour at 75.55%.

I was expecting to have to make another offer in a few months should it be rejected, as I really had no idea or information as to what constituted a reasonable offer. There is a posting on here that successfully offered less. It seems to be a judgement issue on your part along with what direction the wind is blowing on the day in question as to who votes for, or against.

It has allowed my family and myself to start afresh and I wish the same for everyone else.