Full and Final Settlement

[jamie24]

Hi been in an IVA for just over a year,paying 53p in the pound back.I owe a total of £42000.00.I've paid just over £10000.00 into my IVA,just under £5000.00 has gone to the creditors,which is shown in my annual report.
I know i need to speak to my IP,but can anyone advise me on how much I would need to offer for a full and final settlement!?
Many Thanx

[MelanieGiles]

That really depends upon a lot of factors. Are you a property owner? If so, have you offered to raise equity during the fourth or final year? Why do you wish to effect the settlement?

These things are generally better discussed between yourself and your IP, as they have detailed knowledge of your case.

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

[jamie24]

Hi thanks for replying, yes i am a property owner and remortgage in fourth year under the agreement of the IVA.
I was just wondering what sort of figure would be acceptable by the creditors.

[Adam Davies]

Hi Jamie
Your creditors are expecting about 22k plus a large part of your equity.
You need to make them an offer that is similar or better than this unless you have a change in circumstances that may put the IVA in jeopardy.
With an IVA that doesn't have the equity clause it is fairly easy to work out a settlement figure but with this it is not so straight forward.
What is your equity at present?
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

[MelanieGiles]

I can't see creditors agreeing to a full and final settlement so early on in your IVA, expecially as you have an equity release provision, but speak to your own IP about the viability of this. How would you fund the early settlement as a matter of interest?

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

[jamie24]

hi the equity is estimated at £12.000.So would you say that i would need to offer something in the region of £30.000?I've paid just over £10.000 and in my annual review £5.000 has been paid to my creditors,so would i need to find about £25.000 and that would make it £30.000 to my creditors!?
I may be able to fund the early settlement from a family member,so just wanted an idea of how much roughly before speaking to my IP. Many thanks.

[MelanieGiles]

Only your IP can give that advice - so I suggest you speak to them directly after the Xmas break.

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

[jamie24]

Thanks but just wanted an idea if that would be possible or am wasting time asking and the member of family wanting to help.I know must speak to IP but just wanted to know if this sounded ok,good or no good etc before speaking to IP.
Many thanks.

[MelanieGiles]

Anything is possible, and your IP can either say yes or no - but trust me you are far better off speaking to the person who has knowledge of your individual case in this regard.

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

[jamie24]

Ok many thanks for your advice.