IVA and full and final settlement early?

techno1029

I am currently halfway through my IVA. A family member has talked to me about it and asked how much it would cost to clear the IVA early. They may be able to pay this for me. My question is how much would an early settlemnt cost. I currently pay £133/ month and have 30 months left to go. Any help greatly appreciated.

FoggyBrain_2

Assuming you have no equity to address you are looking at an offer near 30 x 133, so £3990. As they are getting it early, you might get away with £3k. On a good day they have been known to settle for less.

FavDaughter1

hi, we did a F&F IVA last yr, you could try £3k - it may well be accepted. if you went to £3.5k i'm sure it'd be snapped up.

you must make it very clear that it's F&F to clear the debt,if rejected the offer will be withdrawn. who's your IP?

post how you get on.

darlyn

techno1029 wrote: »

I am currently halfway through my IVA. A family member has talked to me about it and asked how much it would cost to clear the IVA early. They may be able to pay this for me. My question is how much would an early settlemnt cost. I currently pay £133/ month and have 30 months left to go. Any help greatly appreciated.

Hi Techno,

The F&F settlement is calculated on how close you get to the original "pence in the pound". When you did your IVA, it would show in the order something like 25p in the pound expected to pay out. In your F&F, work it out to just under this amount (as your paying early). Your IP should be able to do all this for you, and give you an idea of whether it would be accepted or not.

As favdaughter says, make sure they understand that 1) the money you'll use to pay "is a gift", and that the offer will be withdrawn should the F&F be refused.

Good luck! :beer:

techno1029

Thanks all...it is a gift from a family member who has seen how we are struggling....think my payback was going to be somewhere about 18% of £25000 i think??? if this sound right....need to get my paperwork out I think. my IP is payplan.

techno1029

Further to last mail my IP has said they cannot advise on any offer I make? I would have thought that is what they are there for??

techno1029

Been told by IP that I need to provide an offer in writing as well as mortgage redemtion cert, P60 ( which they had last year and latest one not due till end of march???) house valuation????? cant afford one of those if they charge you!!!! anyone else have to do this just to make an offer of F&F????

FavDaughter1

hi, first don't panic.

yes we had to get the house valued,we told the estate agent we were thinking of moving but had to be a "quick sale price". the term used by our IP firm was "forced sale valuation". this is to check
you're not sitting on thousands of equity(we should be so lucky:rotfl:).

yes hubbys P60 went across too. the "offer" must be made formally in writing, it must state that the £ is a FULL & FINAL offer to clear all debts for Mr & Mrs bloggs - clearly stating if the "offer" is rejected the £ is withdrawn(the IP would then return the £/cheque).

my parents sent the cheque to our IP before the meeting,this is to ensure the IVA's closed quickly& funds are ready.

RE your offer figure - we didn't find our IP helpful with this, most will want as much as possible. our situation was different as ours was a full & final from the start,yours isn't.

you could try a cheeky offer, but if your keen to be rid of all this stress don't go too low.

it is my understanding that your IP is obliged to put this forward for you so stand firm on it. i'd send any letters regarding this by recorded delivery & keep photo copies of them.

post how you get on,good luck:)

techno1029

Did you have to send a cheque with the offer then? or will the creditors meet first to accept or reject the offer before I need to get the cheque sent???

FoggyBrain_2

Different IP's work different ways. Some like the funds available as soon as the offer is accepted, others will give time to get it together.

FavDaughter1

hi, my father sent the letter& cheque off together - Recorded Delivery about a 5 wks before the meeting date.

i've seen other posts where the £ isn't sent until the meeting's been held & agreed,they then have a set time to produce the funds. it depends on the IP.