full and final settlement

[james_7]

Hi All,
I wonder how much i should offer as full and final
Total debt £47714, original propasal creditors want 25p in the £ = £11928.50. costs are £ 6034 and vat £1098
so far i have paid 7x £293.00 = 2051.00
29x £343.00 = 9947.00
1x £570.00 = 570.00
total = £12568.00

If someone could advise it would be very much appreciated my mum has offerded me £5000 but i want to be sure this will be enough please advise if you think it should be more. the money is to be paid back but due to me and wife splitting i want to sort it out now .

many thanks in advance
james

[MelanieGiles]

Hi James

I suggest you work out something based upon the level of contributions you are yet to make with some discount for IP costs which will not be incurred.

Your £5,000 offer would appear to be reasonable, but you must speak to your own IP to see what they say. As you are separating from your wife, will this affect your ability to continue with your payments at £570? If so then this adds fuel to the argument for early settlement.















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

[james_7]

Hi Melanie,
Thankyou for your response, i did not make my self quite clear enough sorry. I pay £343 per month the £570 was a one off extra from overtime and i could still make contributions of this amount would this affect a £5000 offer
thankyou james

[james_7]

sorry again i meant to say can still make contributions of £343 per month
james

[MelanieGiles]

Well maybe nearer £6,000 would be more like it!

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

[iva_squirrel]

Good evening James,

When you are in an IVA, you can ask your creditors to let you pay a lump sum which is less than the full amount of your debt. This is called a Full and Final Settlement. In return for this payment your creditors agree to write off the rest of what you owe.

As a rule, people are in a position to make such an offer because they’ve come in to some money or a friend or relative may be able to provide the sum required.

It is great that your mum can help you to finish your IVA sooner. I agree with Melanie that £6000 sounds like a good offer.


Good luck.


Julia


For more information about IVAs, please visit my website:
www.supersonicsquirrel.net