F&F settlement offer

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Post by ATP94 » Sun Jun 05, 2022 1:28 am

Just wanted to garner some advice on a F&F query.

A family member of mine is willing to pay in £16,500 as a settlement towards my IVA which currently has £18,244 remaining.

I wonder if this F&F offer is too low or would I have a chance for this to go through?

I'm planning on relocating to another country and wanted to close this debt chapter before I go ahead with further planning.


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Post by Foggy » Sun Jun 05, 2022 9:23 am
By "£18,244 remaining", I take it you mean that this is the total of your remaining payments ? If so, does this include 12 extra months worth for equity? Are you, in fact, a homeowner ?
How long have you got left in the IVA ?

Reductions in the F&F lump sum offered are common and some firms are more open to this than others, but, at the end of the day, it is your IVA, not theirs. Usually the basis of a reduction, apart from the bottom line of affordability, is that you reflect, in part, the savings creditors are potentially making in both time and admin costs by getting a lump sum early.

If you are knocking a couple of years off, I would say that the £16,500 has legs.

Bear in mind, also, that, with the ever increasing cost of living crisis, there will be casualties in the IVA world. I imagine that a number of existing arrangements will fail, so, from the creditors point of view, getting a lump now, rather than risk getting nothing in the near future, has to be inviting --- "Bird in the hand" and all that.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014


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Post by ATP94 » Wed Jun 08, 2022 12:04 pm
Thanks Foggy,

I am not a homeowner so no extra 12 months, the only thing i have differing in the final year is my car finance which i have included in the final £18k figure.

I currently have 3yrs left on the IVA and as you say with the uncertainty of the current inflation crisis - i do not want to be in a position where the IVA fails.
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