How to propose a settlement

[YorkshireRose]

Hi all this is my first post so hope I make sense.

My IVA was approved 20/11/2014

The debt I had was 22K but my total realisations for the term is £6,415.00

I still need to pay £5.5k. My father has offered to pay this in a lump sum to rid me of my debt. I live in a council house and am a full time carer as my son is disabled. I have my IVA with kingsgate insolvency.

I really don't know how to go about this? Do I have to offer the full 22k or the 5.5k that's left? Would this clear my credit rating sooner or would it still stay for the term? I'm struggling with things and just want to rid myself of the stress as it is stressful enough with my sons disability and want to move forward with my life.

Any help/advice is greatly appreciated

[Michael Peoples]

Your creditors would almost certainly accept an offer around the £5k mark. However, given your circumstances it may be a much better idea for you to petition for bankruptcy. The cost is around £700 and as you are a carer living in a rented property this would likely be the end of it. Your father could put the remainder of his money to better use especially if your son is disabled.

Perhaps have a word with your local Citizen's Advice Bureau before you commit any of your father's money to the IVA as I know what I would do.

[Shining]

Hi and welcome to the forum. I hope Michael's advice has helped you and given you some options. Any other questions don't hesitate to ask. All the best with whatever route you choose.

[Shining]

http://www.iva.co.uk/forum/topic.asp?TOPIC_ID=71785

Yorkshire rose has opened another post so this one will be locked to avoid confusion and a link to this one placed on 2nd post to signpost her to the replies already given.