What is a full and final offer?

[cherrypink]

Sorry if this is a stupid or very basic question, but I was wondering, what is a full and final offer? Can anyone in an IVA make one? Do you have to have been paying the IVA for a certain amount of time before you make and offer? Is it money that you have have inherited, or been given by a friend or relative? How is the amount worked out? I am just really curious as to how it works!

Thankyou!

[MelanieGiles]

There are various ways of making a full and final offer of settlement - but the two mains ones are either by receiving third party funds from friends or family, or by selling an asset/or assets which were excluded from the arrangement, such as a property.

An offer of settlement is then made to your creditors at a revised meeting called specifially for that purpose.

[emma_t]

If I am not mistaken any money gained from inheritance would be classed as a windfall and be payable into your iva.

Some posters get very generous offers from family or friends to make a full and final offer to creditors - lucky things[:)]

[liberta]

Anyone in an IVA can make an offer in full and final settlement and as Melanie says it can be an offer from a third party or monies raised from a sale of an asset.

As Emma quite rightly says any inheritance, unexpected gift or lottery win would be classed as a windfall and would have to be paid into the IVA in its entirity.

There are no rules as to when an offer in full and final can be made. Some IVAs are proposed as a full and final settlement from the outset. Other full and final offers can be made at any time during the life time of the IVA by way of a variation meeting.