It depends on what you mean by "owe" --- Is this the amount still left to pay under the agreement ( monthly payment multiplied by number of payments left) ?
Do you have equity to be addressed (do you own or rent) --- if so there might be an extra 12 payments to be added ?
How long to you have left until the agreed end ( considering also the possibility of a 12 month extension if you are a home owner with enough equity) ?
Sorry for the inquisition, but these facts are salient and we cannot answer with any degree of confidence without knowing.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
It might take your IP several months to sort this out and close your case so might not really benefit you in making an offer but the more attractive the offer, the more likely creditors are to accept it.
Please note that it won't improve your credit rating any earlier.
Can I ask the same question for my situation please?
Currently pay £131 per month with 4 years left.
Initially paid £153 pm for 2 years until the reduction.
Have paid in (including bonus payments) £6,990 in first 2 years.
I rent.
Many thanks
Hi Adam. Your creditors are expecting a further £6288. Why was that extra year tacked on? Was it a 6 year agreement from the start or extended with the reduction in payments ?
Either way it would indicate that your creditors think the dividend was on the low side, so you haven't as much wiggle room as some, although you are well ahead of the game due to bonus payments.
I would venture £5,500, maybe even £5,000 would get a fair hearing.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thank you for that.
It was a 6 year agreement from the start. This was due to the fact that I gave more than 50% of my divorce settlement in my wife's favour due to her needing to rehouse her and my daughter. I thought it was the right thing to do, but not in the eyes of the creditors.
Do you think an offer of £5,000 would be acceptable, and if so, how do I go about wording my offer to the IVA company StepChange? Do I have to let them know it is full and final and that there is no more to offer?
Make sure you use the phrase "Full and Final Offer", not "Settlement" as this is a different ( and more expensive) animal. Mention that the offer is from third party funds ( they will check this) and is only for the purposes of a F&F. If the offer is rejected the money be retained by the third party and will no longer be available.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I have now contacted my IVA representative and they have sent forms to my parents, who will be gifting me the funds for a full and final offer. They have been advised to seek advice from a solicitor. I am not sure they are needing to incur extra costs. Is this just StepChange covering themselves as they cannot offer advice?
It has spooked my parents a little, but I don't think they need to officially get advice from a solicitor, or is that a requirement of the offer?
Thanks for your help.
They should not need to seek extra advice - just make sure your IP is aware that the money is only available for a full and final and will be withdrawn if this is not agreed.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
The point is your parents need to ensure they are satisfied they understand that they are gifting you these sums and it is not a loan. Therefore I understand they could not legally pursue you for repayment later on.
It's always wise to seek legal advice when you're spending these sorts of money but as long as they are satisfied then they may choose not to do so.
As Foggy says it's good practice for your IP to remind them of this.
If you offer what you can afford as long as its not too far away from the remaining total you should be fine. Also sometimes if they do not accept they can send you a counter offer that you can think about.
