what is a fair final settlement offer

jbaugh

Hi

My ex partner took a IVA on 3 years ago (4 yrs this comming july), he pays 2 thousand back per yr so has paid in excess of 6 thousand now if he were to do the full 6 years that would work out at 12 thousand in total.

We were trying to get a idea of a full and final setlment figure to offer the IVA people to put forward to the ones he owes money to what is a fair offer? i suggested 3 thousand does that sound right

many thanks

techno1029

Some other questions would need to be answered first. Do u own your home and do u have equity in it? Where would the funds for the F&F payment come from? Are you currently, or would you struggle in the future to maintain your current payments?
F&F settlements can vary according to personal circumstances!!

jbaugh

Yes he owns his own house there is no equity in the property, the funds to pay of the iva are to come from my parents...there will be a struggle as my health worsens by the week and therefore he has to take on more with the children rendering his ability to earn extra monies via over time ect to nil

UpToMyNeckInIt

Your IP will probably take the line that you should pay off as much of your original debt as possible.

as others have said: Always difficult to advise on these matters as everyone's circumstances are different, and some IP's are more willing to fight your corner than others.

However, I have read advice on another IVA forum, and the general consensus is: offer a F&F equivalent to the minimum amount your creditors originally agreed to accept, (ie: your IVA monthly payment multiplied by the original 5-6 Year term - that would include all your IP fees), less the £6k you have already paid in.

Your creditors should see this as a win, as they are getting all their agreed minimum dividend at once, rather than waiting another 3-4 years.

Coupled with you health problems (sorry to hear about that), and the possibility that your IVA may have failed anyway (impacting your ex's earnings - your creditors would end up with even less in this event), I would suggest that such a proposal would stand a reasonable chance of success.

Finally, i hope you health improves.

Keep us all posted and let us know how it all goes. Good luck.

techno1029

If there is no chance of them getting any equity from your home and there is a possibility you could struggle in the future to maintain your IVA then, in my opinion (not an expert mind) I would definately make your offer of £3000. When I made my offer it was just about what I would have paid if the term was seen through. By the time the meeting was called and the offer put forward I had actually paid a few hundred pounds more, but this was irrelevant to me as it was accepted and I was elated. When you approach IP to make an offer they will ask you to justify reasons why you want to do this, explaining your lack of equity and possible future problems you may get lucky. I have since read several stories of people offering extremely low offers and getting accepted. You have nothing to lose in trying!!!...Good Luck.