wanting some advice on an early repayment figure

[elk]

Hi there,
firstly i'd like to say just how helpful this site so many thanks.
I have been in my IVA for roughly 17 months and was wanting some advice on an early repayment figure. My funds would come from a 3rd party family member.
My voluntary arrangement was £15,900 (a whopping £6360 of which is in fees to my IVA company...i didn't quite realise just how much was going to them at the time of signing and have been paying £265 per month since the beginning with no missed payments.
£159000
-
£4505
= £11395
What do you think a reasonable offer would be? can some money be deducted for a lesser number of years with regards to supervisors fee?
Look forward to your response.

[MelanieGiles]

Hi elk and welcome to the forum

I would think approximately £10,000 would return a realistic offer, but do get your IP to confirm if this is reasonable, and also that you can propose a variation within the first 24 months - as some creditors will not allow this.

[elk]

Thanks for the advice.I offered £8000 based on the following:
I have already paid:

1 x £288
+
17x £265
========
£ 4793
========

My IVA repayment was £15900.

£6360 inc. Vat were IVA fees….Over 5years this is £1272 per year.

Should my full and final settlement offer be accepted the 5 year term will be shortened thereby reducing IVA costs.

I estimate that at least 3 more payments of £265 will be paid before a decision is made and a settlement is completed therefore bring total monies paid to £5588.

£15900
-
£5588
======
£10,312
======

I think an offer of £8,000 is reasonable as this would be a total of £13588 paid from the £15900 agreed (£2312 less than the £15900 - which would take into account 3 years less of the IVA ..at approx £1292 per year , 3 years less totalling £3816 which leaves £1504 to cover creditors meeting etc.)
Hope this makes sense. I do not have an equity clause (not a home owner) and there was no clause re: making an early settlement figure.

I recieved a phonecall this morning from debt free direct regarding my full and final settlement proposal and the lady I spoke to (who really didn't sound like she had a clue what was going on)said that they needed a letter from the 3rd party stating who they are and that they are offering this money as a full and final settlement..due to money laundering. She said they were not allowed to give me any idea of a figure to put forward to creditors and that once they recieve the letter from whoever is giving the money as an F&F this would then be passed to my IP to look at and let me know whether or not they would put the offer forward. They will only give me a 100percent figure of the original debt as a guide. Is this right and if so can you advise me on what my father (who will lend me the money) should write? Hope someone can advise? Many thanks.

[MelanieGiles]

So offer the £8,000 you are comfortable with and see what the IP has to say. I still feel the offer is on the low side.

[Adam Davies]

Hi elk
Your IP fees would be loaded in the first year to collect their nominee fees.Therefore Melanies estimate of 10k is closer to the mark
Regards

[elk]

Hi Andy,
thank you too for your advice. I've already sent in an offer of £8k -if they don't approve can I offer a higher amount or is that it?

[Adam Davies]

Hi
Your IP will advise you if they feel that it will be accepted or not.If they say that it's not enough then you can up it.You really need your IP behind you as a recommendation from them for your creditors to accept will be a big plus
Regards

[elk]

Hi and thank you,

May I just ask should my father have to write stating he is prepared to lend this money as a F&F and does it help if he says I must pay it back / i.e what may help in his statement offering to pay this money?

I appreciate your advice I really do!

[Adam Davies]

Hi
Once your IP agrees with your offer figure they will probably want the third party [your father] to confirm the offer.He needs to state that the offer will only be made if it is used to conclude your IVA and that he wants it paid back monthly using your disposible income.
Remember it is your creditors tht need to accept this offer,not your IP,however it always helps to have the IP behind such an offer
Regards

[Soulgrowth]

I am hoping to make a full and final offer soon and I provided my IP with a bank statement showing the amount sitting in my account [:)]

Good luck

Debbie

[elk]

Thank you Debbie! Better get my farther to write something then!
Kind Regards.

[elk]

Thank you Andy,
I'll get my father to write in then - the advisor I spoke to said they needed this before it gets passed to the IP team?
Thanks again.

[Soulgrowth]

Hi Elk ... I think that you need to prove that you have the resources before they put the work in [:)]

Debbie

[caz]

Hi Elk,I am experiencing the same frustrations as you because the IP at DFD is not available to discuss our queries.I suppose this is because they are a large set up and because of this unable to offer the personal service we need.Good luck with the offer...let us all know if you get your freedom because being in an IVA feels like a prison sentence sometimes although there is light at the end of the tunnel, I hope.

[elk]

thank you all so much - what would we all do without this web site?!