I have c card debts of about £65000, no income on which to do an ongoing IVA, I have equity of about £10000 to £15000. My father has offered me £15000 to clear them with a lump sum iva - but is the dividend too low? I know its low, but also know they wont get any more any other way.
Whether it would be acceptable or not will depend on a number of factors, one of which as Andy says could be if you sold the house and put the equity in too that would increase the creditors "pot".
However, when you say "no income" do you actually mean that or do you mean no surplus income? That is another issue entirely as if, for example, there is no surplus income solely because of the amount of mortgage you are paying, or your lifestyle, then the creditors might expect you to cut your outgoings by selling the house or simply cutting back thus enabling you to make a contribution.
I think you could do with talking to an IP firm and going through your income and expenditure on a confidential basis before it can be determined whether the idea you have is viable.
Ian
Ian Millington
Insolvency Director
PDHL Ltd (formerly Personal Debt Helpline Ltd) www.pdhl.co.uk
If you have no income, and your only asset is your property, I personally would set your father's loan against the equity in your property and offer £15,000. With lowish costs, it gives a return of 16-18p - which may well be favourable to creditors as they get the money now.
If the offer is turned down, then your Dad can put his money to good use purchasing your beneficial interest from a Trustee - where creditors will be unlikely to get any return. Worded like this, by an Insolvency Practitioner who is prepared to fight your corner, may well produce the result you are looking for - and your Dad would be well advised to take a charge over your property as security for his loan.
