Do you think this offer is acceptable ?

[lg4]

I am currently in an IVA and have been making payments for 18 months. I have never missed a payment. I only have 18 months to go on my IVA but i would like to end it early if i can. I dont own a home or anything else valuable. Over the next 18 months i will be paying in total £6000. I would like to offer £4000 (which my parents have offered to loan me). Do you think this offer is acceptable ?

[lg4]

sorry my first post is wrong, i have been in my IVA for 36 months and only have 18 months left. I want to offer a full and final payment of £4000. My total payments for the next 18 months will come to £6000. Do you think £4000 is an acceptable offer ? I dont own a home or have any other valuables and my parents have offered to loan me the money.

[kpw]

Hi
I was 2 years into my IVA. Like you my parents offered a lump sum. The IP estimated it at approx the balance of what would have been paid into the total fund so that the creditors received full dividend 28p. What you must be able to demonstrate is that due to a change of circumstances it is likely that you will not be able to continue the IVA.e.g change of job, expenditure etc.The important thing is that your IP recommends that they accept the offer, so talk it through with your IP and ask for a settlement figure. I was able to do this and the creditors accepted a f+f offer of £35450 in july 2007 Hope this helps

[MelanieGiles]

I suspect that your offer is low - and would suggest that you persuade your parents to increase their offer to the £6k that you currently owe to increase your success rate.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi KPW
Normally I would say that you could offer less than the remaining payments as your IP would make a saving from fees charged over the remaining term,however in your case your IP will have the cost of a variation meeting that will be counterbalanced with the saving of the final years IP fees.
So as Melanie states you will need an offer close to the 6k remaining but have a chat with your IP and ask them for a suggested figure.
As long as you return the original dividend and do not have an equity clause then there is no need to demonstrate a change of circumstances to have your f+f accepted.Your creditors will be happy to get their money early.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp