Settlement figure

[BillyFlint]

I have been in an IVA for about 14 months now. Total debt at month 1 was (£25,078) with a voluntary contribution of £16,620 over the term with a Nominee's fee of £2,938 and Supervisor's fee of £3,643 making a total contribution of £9,889 towards creditors. My monthly breakdown of payments were as follows Months 1 - 40 (£208 p/m) Months 41-60(£415 p/m). I estimate therefore that my contributions so far have amounted to £2,912. There is an early settlement fee agreed with the IP of £775.

My question is therefore.. what would be a realistic early settlement offer be?

I am in rented accomodation and do not have any assets etc. I have experienced the breakdown of a long term relationship over financial stress. My parents have seen enough and have decided to step in and help with a loan. The amount they can offer is not huge and I could do with keeping some of it to furnish my new flat, since I'm starting from scratch all over again. So I don't exactly want to just throw the biggest figure I can muster when submitting my full and final offer.

Can anyone give me a ball-park figure based on my circumstances please?

[Adam Davies]

Hi
Well your creditors are expecting £9900,you have covered your IPs nominee fees with payments made to date and will need about 1k for fees for the first 14 months and the agreed variation fes of £775.
If you offered £11500 you would have your offer accepted no problem as your creditors will receive the dividend that was proposed at the start of your IVA.
Has your IP given you a figure that they feel will be accepted ?
Considering that you have no assets and that creditors like early settlements I would come in with an offer of 9k
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

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

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

[BillyFlint]

Thanks Andy

Based on what I'd read on the forum that was roughly the figure I'd estimated too. I'll speak to the IVA managers on Monday and submit the offer of £9k.

I'll let you know how it went.

Kind Regards

SD