advice on full and final settlement

devonshire

Need some advice, started IVA in may 09, we had about £19,000 worth of debt, we pay £207 a month and was wondering roughly what sort of figure would be accepted if we were to offer a final settlement?

Charco_2

Lot of this about recently.

It worth reading some of the other threads on here about F&Fs but a good starting point (as i always explain) is get a good story together.

It won't simply depend on the money at the end of the day - just as important sometimes is the "WHY?".

"I'm fed up repaying" - doesn't cut much muster with your creditors but

"I'm about to be made redundant and I've just found out my wife is pregnant" can go a long way!

So WHY are you looking to make a F&F offer and WHERE IS THE MONEY COMING FROM?

It's not so much that your creditors have a heart and will show you some sympathy if you have a good story (but it's nice to think of it that way). Really your creditors only want to know why can't you simply continue to make the repayments you agreed last May? Then they'll want to know that the money you are going to offer as F&F isn't money that they would be entitled to anyway!

devonshire

oh right I see. The money would be coming from family, no particular reason to end the arrangement I suppose, apart from to end the payments!

Charco_2

Well, it's still something to consider (and who knows, you might have a reason... some dark cloud lingering on your horizon, a distant concern maybe that might never happen)

All I'm saying is, if you over the next 50 months you're going to be paying back £10,350 and you foresee no problem to you making these 50 payments of £207 then WHY would your creditors consider taking anything less than the £10,350 you've agreed to pay them (apart from to get the money in early)... therefore your offer in a F&F would need to be roughly similar to what your creditors would be receiving anyway

£10,350 minus four years supervisors fees would probably be about £8,500 so your offer to your creditors would need to be somewhere around the £8,000 mark I'd have thought.

However, if you lost your job and didn't think you'd be able to find another job without taking a big paycut so you could no-longer afford your £207 a month BUT your father was willing to pull £3,000 out of his savings to bail you out then your creditors would probably jump at it!

Does that make sense?

devonshire

yes it does make sense. I'll just stick with paying it for the time being as I do not foresee any probs with paying at the moment.
Thanks