If you have opted for an individual voluntary arrangement (IVA) and are looking forward to come out of it, the only way to do it is to offer a full and final settlement to the creditors. It is important here to make a proper assessment of your debts to them before making the offer since their acceptance would depend on how much money they will be receiving as a result of your offer. Since you are in an IVA, you will understand and appreciate that there are a lot of variables involved in making such an offer.

The first step here would be to approach your insolvency practitioner and get some advice on how much to offer and why. This is the right direction to take and never try to approach any creditors directly with your offer. During the tenure of the individual voluntary arrangement, all offers and agreements with creditors should be routed through the insolvency practitioner.

The offer for full and final settlement you will be making will be actually to the insolvency practitioner since he is the IVA supervisor. He is impartial and pass on the offer to your creditors as the protocol demands.

Although explaining such calculation is specific to the situation and the IVA terms, let us see a rule of thumb to arrive at an approximate figure that could give you a start for your discussions.

The amount of offer = (IVA VC’s x IVA remaining months) – Remaining SF

Where VC is the voluntary monthly contribution towards your IVA and SF is the supervisor fee. For example, if your IVA tenure is 5 years and your VC is £200 and your insolvency practitioner draws a SF of £40 a month and you have already made VC for 34 months, your offer should be (200 x (60-24)) – (40 x (60-24)) = £5760.
Hope the above example is enlightening for all of you in an individual voluntary arrangement, the faster you close it, the faster you can get on with life.
So you may be considering an iva debt solution or some other kind of way to clear debts.Well three years ago I entered into an iva, and went through many of the emotions you may be going through now. To hear my story and find iva help and advice go to the iva help site at iva help site

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