Considering full and final. There are 50 payments left on the iva at £120.00 per month. Need to factor in another 12 payments in lieu of equity clause. Therefore still to pay 62 months at £120.00 which equates to £7440.00. Would the creditor accept a lump sum of £5K. There is more than 5 years to go, so creditors will be receiving the lump sum in within the first year of the iva.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
Offer seems a little low to be honest with you. Youre less than a year in, lots could happen in next 5 years which would give creditors a bigger return. Yes creditors are getting money quicker but theyre missing out on a third of what theyd get if you paid monthly, plus what theyd be writing off. I think a figure much closer to expected payments would be more likely to be accepted...but im not an expert so could be wrong.
This offer could be accepted by the creditors. They would be getting their money early and you have factored in equity release. Your payments are pretty low at £120 per month. What was your original debt figure?.
Normally creditors would expect a return of the remaining payments over the term so as near to the original expected dividend. But run it past your I.P to be sure.
If you have little or no equity this could be accepted but if there is substantial equity creditors may be happy to wait and hopefully get some of that.
The original debt figure was £65K. I/E was completed and the IP calcuated the disposable income was only £120.00 per month which was duly accepted by the creditors.
