www.iva.co.uk

sorry for asking this again but we are going to try and make a a Full and Final to close our IVA. ( we have asked similar Qs before )
The total due in our arrangement is £18 000, We have paid off £5040 to date and by July will have paid £6840. If we were to make a full and final of £8000 would that be acceptable? We have been offered this by a relative because my wife has had her wages reduced and my employer had made recent redundancies ( we are scared we could be next!).
The full total due if we continued our monthly payments would be £10 800.00 - i have deducted the fees due for the next 3 years to get to the £8000 figure.
Any advice is appreciated.

Hi there. on the face of it, in view of the real possibility of redundancy, the figures might work. However, I am concerned that you have deducted an amount for fees. This might not be applicable, and you need to check the position regarding fees in your proposal / chairman's report. Quite often, these days, fees are a percentage of realisation and have no bearing on time worked.

If fees are a percentage, you might be a little light on the offer.

If made redundant would you be due a financial package?

You have to put yourself in the creditors shoes and ask if you are giving them reason enough to accept less money now or hang on a few more years in the hope that your circumstances get better and they may get even more back.

Paul

We submitted a F&F offer in November and are waiting for the Creditors meeting. Your figure sounds realistic for consideration, have you included any equity clause if applicable?