Hi,
I am thinking of offering an early settlement figure of 12500 to my creditors. This money has been offered to us by my wifes nan. its her savings. We currently pay £480 per month. We started in Jan 07. Because of the rises in costs of living, fuel etc after revising our expenditure i have worked out that we can actually only afford £250 per month. I am obviously £230 short. As you can imagine we are not coping and my kids are suffering big time as a result.We are going to end up defaulting before long as i can not find this money!!! We are paying 58.27p in the pound. We should be paying into our IVA until Dec 2011. Do you think that considering our circumstances and the high chance of us defaulting the creditors will accept the amount of 12500. If i default and i end up bankrupt then they wont receive any will they?
It may be possible to offer an early settlement to your creditors, and you will need to discuss this with your IP to see if they think your offer is viable. If you can show that over the next couple of years you only have affordability at £250 per month, then you offer would appear to be viable.
