Final settlement - how much to offer

mightyjack

Good afternoon all, my IVA ends in August next year, I have 1920 left to pay. I'm going to offer a full settlement but wondered if anyone knows what sort of ball park figure to offer that will offer the most chances of it being accepted. I understand that the full amount will get accepted however it's most likely I could offer max 1500

Brie

Why not simply ask what amount they will accept? i.e. don't give them a number just wait til they say what they would accept and then perhaps offer them a bit less.  

mightyjack

Brie said:

Why not simply ask what amount they will accept? i.e. don't give them a number just wait til they say what they would accept and then perhaps offer them a bit less.  

my I.P said it doesn't work like that we have to just make an offer and hope it gets accepted 

ManyWays

Do you have a house with equity? Is there a reason why you cannot just carry on making the normal payments? 

RAS

Do you know what the fees were charged by your IP? Likely between £5-9K?

To get a full settlement, you'll need to pay the £1920 PLUS the IP fees. 

So it will cost a lot more than your current debt.

sourcrates

How do you know you have £1920 left to pay?

That`s not how an IVA works at all, its not a reducing balance that gets less with each payment you make, it doesn`t work that way, your IP makes regular disbursement payments from the pot of cash you pay them, also out of that pot comes their fees, VAT, sundry payments, interest, and all other costs as well.

Any settlement offer will only be accepted if there is either some good reason why you cannot continue with your monthly payments, such as a job loss or other medical reason, or the figure you offer exceeds the full original balance of your debts to include all statutory fees etc, as well.