www.iva.co.uk

I'm looking to settle my IVA early. My total debt is around £10,500 fees are £4,400. So all in all £14,000.

I'm currently on 60 monthly payments of £100. I've paid 6 so I've got £5400 to go.

The 60 monthly payments bring the total of my IVA at £6000...

Now as the fees are £4400... My creditors are only getting £1600 between them....

I'm thinking, would my creditors accept a full and Final of £2000? It is £400 more than they would get if I stuck to the full term.

If not, what sort of offer do you think I should make?

I know it's normally the amount monthly payments left for a full and final. But isn't it the creditors who have the final say? And surely they would accept £2000 over the £1600 they would get if I stuck out these monthly payments.

Unfortunately your logic is flawed. Usually, out of the first years payments, or so, the first thing to be paid is the nominees fees (around £1750), then the Supervisors fees (15 - 20% of ongoing payments.) and disbursements (£500 - £1000). So, if you paid, say, £2k now, your creditors would not see much of it. So unlikely to agree to much less than the full amount.

Your payment of £100 per month is pretty close to the minimum for a viable IVA, so does not leave the wriggle room some arrangements have.

That said .... dealing with such small amounts of return the creditors might just agree to call it quits --- it is a difficult call to make.

Yes I can to the conclusion that my logic was flawed this morning! Of course I'll need to pay the fees too.

So if I'm looking to offer a full and final, should I offer around £5400?

I'd like to go as low as possible really!

You could go in low and increase the offer if it is rejected, but you can only really increase once, maybe, otherwise they will catch on that there is more to be had ! Do also bear in mind that a variation meeting could add £300 - £500 to the fees, depending on how they have been set.

Even at £5k, you are actually parting with only half your debt, as well as 'saving' the contractual interest on those loans, so still not a bad deal.