One of final settlement payment advice

prowse69

Hi Folk new to forum and was hoping for some advice.
We have been in our IVA for 14 months now paying £160 a month, and the last 15 payments due to go up to £245 a month.
Situation is I am no longer working as my temp contracted ended so we are now down to one wage with no spare expenditure.
Now my kind folks have offered to pay a lump sum full and final settlement to end the IVA and help us out but what figure do we offer and how do we go about doing this?
Any advice gratefully received

FavDaughter1

Hi, the advice seem's to be to make the f&f a bit lower than the amount you'd pay in if you continued with the IVA. it's difficult, you don't want it to be too low,the idea is to get it through although your personal situation also has a baring on the figure too.
other's will come along with more detailed advice. good luck!

bernard828

FavDaughter1 is right. Work out how much more you'd be paying if your IVA carried on as normal. I reckon you've got just over £8,500 to go in IVA repayments. Try an offer of £6,000-ish. You need to speak to your IP about it and they will review your income and expenditure showing that due to a loss of job, you have no further payment to offer creditors. They will set up a variation meeting asking creditors if they want to accept the payment from your parents.

Of course, you could let your IVA fail, go bankrupt, pay nothing in bankruptcy due to your low income, and let your parents keep the £6,000, but it depends on whether you have any real reason to avoid bankruptcy or you would rather pay your creditors.

katiemay_2

I owed around £30k and offered £10k for a one-time IVA which was accepted. CCCS told me to offer between a third and half of what was owed. I could only get hold of a third so thats what I offered. Good luck.

FoggyBrain_2

Katiemay -- there is a difference between a third of what you owe and a third of what you would pay during the course of the IVA.

For instance. I owed nearly £60,000, so, an offer of around £20,000 looks acceptable -- and is, in fact, nigh on what I will pay over the life of my IVA.

But a third of what I will be paying is only nearly £7,000.

If I offered £7,000 against debts of £60,000 I think I might be politely told where to go!

katiemay_2

Sorry I wasn't clear - I was told to offer what I would have paid had I gone for a full 5/6 year IVA. So no benefit to me other than it is out of the way quicker, my credit should be repaired quicker, and any pay rises and/or bonuses that I receive in the future I will get to keep instead of having to hand them over. So yes, a third of what I owed.

FoggyBrain_2

Yes, katiemay --- if you can raise the thrid party funds at the start or early on, so much the better. Credit will still be shot for the 6 years though, but you can start the rebuild a lot faster. As a bonus, you get to "keep your life" :-)

Lee021078

Foggy, I think you advise me on the iva.co.uk forum. I have paid £4300 of my iva which is set at £13800. How much do you personally think a good offer would be? My circumstances have dramatically changed, my new expenditure form, statements and receipts should prove this once I have them sent to my IP.

FoggyBrain_2

Hi Lee -- yes, t'was me! Well, you have around £9500 still to pay during the rest of your IVA. If your circs have changed in a way that makes it likely that your IVA could fail it would add weight to your offer, and a lot depends on how much your original debt was (as opposed to the £13800 you will be paying on the IVA) and your intended dividend. the object still being that the creditors can see that they are getting a decent return. Just over £7k would be giving them 75% of the outstanding balance. Run that figure by your IP and see what they think ( if they are inclined to be helpful!). How flexible are you on the £6k you were already considering? Maybe better to start there, as it's possible to increase your offer, but impossible to reduce it.

As I have said before, amounts to offer are very much "How long is a piece of string?" type questions.

robbies_gal

just bumping this as am interested in what they accepted if at all-i could be in the same position with 12k still to pay over another 3 years

SunshineBear

I didn't realise you could do a one time IVA. My DMC never mentioned this, prob because they knew I hadn't got it.

On £33k do you think they would accept 1/3.