After some advice I have been in my IVA 8 months and have been making payments of £167 a month. Me and my partner are looking to move abroad potentially end of the year. She has offered to help pay off the IVA just wanted to know what sort of ballpark figure should we be offering them? My original debt was £20,500.
Hi --- I am assuming that you have a standard 5 year IVA and rent your home ( so no equity to deal with):
You have 52 payments left ... by the time the offer is going through, probably 50 months @ £167. So .... your creditors are expecting another £8350 from you over the next few years. Your offer needs to be as close to that as possible, to make it attractive. But, over the 50 months the creditors will be saving a bit in admin costs, so you can round it down a little. I would say to offer around £7000. Some might go as low as £6000 and you could try that first time and up the offer if they refuse ... but you can only increase your offer once or twice, otherwise they will feel like you are messing them around and not making the best offer you can.
Remember --- this is a Full & Final Offer --- not a settlement ( that is a different and much more expensive thing).
Best of luck.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
