Do you think creditors will accept this full and final offer ?

[DdC70]

One year down, 4 years to go. Total payable to creditors over full term including 12 extra payments to cover for equity release is £7200.00. extended family is offering £6000.00 as a lump sum full and final. Do you think creditors will accept this, might be able to stretch to £6500.00.

[Foggy]

Hi -- is the figure you mention the full amount due, from start to finish, or what is left to pay including the 12 months in lieu of equity?

You need to offer the remaining balance, which I am sure will be favourably looked upon as everybody is getting what they signed up for much earlier, which will make the IVA far less expensive to administer and so make an early offer even more tempting.

[Adam Davies]

Hi

You can offer less if you feel that your circumstances may change over the years ahead for the worse and can convince your creditors

May be worth chatting with your IP as your offer in my opinion is quite reasonable

Good luck

Regards

[Michael Peoples]

This seems reasonable as creditors get their money quicker but it may depend on the level of equity. An automatic extension is not guaranteed so creditors may feel there could be equity to be released later. Get an up to date redemption figure and house valuation.

[Bowman]

Hi Foggy, the figure mentioned is what is left to pay including the 12 months in lieu of equity.

[Foggy]

In that case, subject to Michael's comments, it is likely to be an acceptable offer.

One caveat I would throw in, however, is that I have seen creditors accept very low offers as well as throwing out very generous offers ( in one case more than they were likely to get over the full term). They ARE fickle creatures !

[Bowman]

Hi Foggy, do you think the creditors will accept the £6000.00. I am sure that the IVA company would be happy as they do not have to manage the iva over the remaining years.

[Foggy]

Not only do the IVA company not have to manage the IVA over the remaining years, but the creditors will not have to deal with numerous small payments, so they save on admin costs as well. They also get to write the toxic debt off their books, making their ledgers look healthier.