Full and Final Settlement - IVA
Hi,
I took out an IVA in August 2020, £32k debt, reduced to £12,000.00 over 60 months = £200.00 per month.
I really want out, and my partner has offered to gift the money to get this settled.
I want to offer a full and final settlement after 18 months, which will leave £8,400.00 remaining on the IVA.
Note, I have no assets, no mortgage, and live in a rental property. My largest debt with Tesco Bank (£17,000.00) has been handed over to the PRA Group who more than likely purchased the debt from Tesco for pennies.
What sort of offer would likely clear this debt? I was thinking about offering £3000.00.
Please let me know your thoughts, or past experiences.
Many thanks,
I took out an IVA in August 2020, £32k debt, reduced to £12,000.00 over 60 months = £200.00 per month.
I really want out, and my partner has offered to gift the money to get this settled.
I want to offer a full and final settlement after 18 months, which will leave £8,400.00 remaining on the IVA.
Note, I have no assets, no mortgage, and live in a rental property. My largest debt with Tesco Bank (£17,000.00) has been handed over to the PRA Group who more than likely purchased the debt from Tesco for pennies.
What sort of offer would likely clear this debt? I was thinking about offering £3000.00.
Please let me know your thoughts, or past experiences.
Many thanks,
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Replies
Your creditors are unlikely to accept a low settlement figure and if you propose to take this gift and pay them they could accept it and demand you continue the full course of the IVA. Check your T&C's for details about windfall payments.
At the end of the day the creditors want as much of the debt paid as possible and your IVA Practioner has a responsibility to secure this for them.