In a bit of a pickle.

[Mix]

Hi all,

Wonder if you can help. I'm about 70k in debt. I borrowed from several banks and CC's and loaned the money to a friend who put it into a business and lost it. It isn't coming back.

I have been self employed for the past two years and have been able to service the debt until November 08 when clients stopped buying and the money was no longer coming in. Since then I have been making Pro-rata payments on the advice of CCCS but due to interest and charges my debt is now increasing.
I am beginning to wonder if an IVA would be a sensible option for me?

Also, there is the possibility that in a few months someone would give me the money for a full and final based on 25% of the outstanding amount.

What are my options, any advice greatly appreciated!

[kallis3]

Hi,

As you have no regular income, I don't know if an IVA would be right for you. However, it's not your only option and I would recommend that you speak to a professional as soon as possible.

If you visit www.iva. com you will find a list of companies and reviews. Give one or two a call and they will advise you of all the options open to you and the best way forward.

As to a full and final at 25%, I really don't know if that would be accepted.

One of the professionals who posts on here will be on later to give further advise.

[size5]

There are an awful lot of blanks you would need to fill in, such as assets, what you can actually afford at present (if anything!!)etc.

Jan is right in that you need to speak to a professional directly, but I suspect in the current economic climate these sort of scenarios may well become much more common. If you have no money to make repayments due to the economic downturn then an instant return via a one off payment may well become very attractive for creditors.

Regards.

[Mix]

Sorry, I should have said, I do have a regular income it has just been drastically reduced. ie from £4k to £1650 PM.

Hopefully that should clear things up.

[kallis3]

In that case then Mix, dependent upon what your disposable income is after your priority payments, such as mortgage, are paid, an IVA may well be a solution for you.

Give an IP a ring - they'll be able to help you further.