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Hi
I am just starting my 3rd year of my IVA, I pay £315.00 per month and my debts were originally £27000. By the time the five years are up it will work out that I pay back approx £18900. My partner has offered to give me the money to settle my IVA early. I rang up the company who sorted my IVA for me (Bridgestones)to ask them what sort of offer would be accepted and they just told me they couldn't say and for me to write a letter stating why I want to settle early and then they will call a creditors meeting. My partner has suggested I offer £8000 bearing in mind I have already paid £7350. Do you think this offer is reasonable? If so, what would I need to write in my letter?

Hi Vicky
i'm no expert, but I think your Ip will have to work out any fees owed then 8% intersest is added which will make up what would be an acceptable offer.
On the other hand, as Melanie has stated in her previous posts, some creditors would like to settle earlier than hold out for the money. Keep in touch with your IP as you can do nothing without their input.
I'm sure an expert will be on soon to set you straight

Hi vicky and welcome to the forum

I can understand why your IP is reluctant to give you a settlement figure, as the offer should rightly be made by your partner, however I do feel that the amount you have stated is a little low. I would think £10,000 would be more realistic, depending on the level of fees your IP is charging.

This will probably give creditors a similar to that originally pledged, but at an earlier juncture, and is unlikely to save much on costs as the IP will probably seek to charge a fee for varying the arrangement.

When I guide my clients as to possible figures, we always start with trying to achive the original dividend, as you can more or less guarantee a result on this basis.

Kerry - statutory interest is only payable where debts are being paid in full, and the proposal states that it must be paid. Not every IVA proposal will require this.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk