is this a realistic potential solution please

[keith.a]

Currently £98k in debt to 9 creditors ( all credit cards).
Made redundant 4 months ago, and now unable to afford minimum payments. No assets.
3rd party ( personal friend) has offered £40k if I can organise a full and final settlement of all debts... is this a realistic potential solution please

[keith.a]

Just read my first post above and realise it sounds extremely brusque and to the point. Please accept my apologies...I am incredibly nervous and although I have gained some confidence from reading other posts on this excellent site, I just wanted some feedback/advice/suggestions from anyone who can help me understand the likely response from creditors

Cheers

Keith

[MelanieGiles]

Hi keith and welcome to the forum

No problem - we like concise on this forum, and I have often been accused of same!!

The offer you suggest ought to be workable, but with nine creditors I would suggest that you put this forward as an IVA. The advantages of this are that creditors have to all make a decision on one day in time, and there is therefore no toing and froing from lender to lender to try and get them all to accept the same deal.

I do a lot of these types of proposal, and creditors generally like them as they get their money paid back at a much earlier stage than if you were paying contributions over a five year period.

[keith.a]

Melanie...

Hi, and thanks very much for taking the time to respond with some
re-assuring comments...regrettably, before finding this forum, in an effort to move things on, I have already written direct to my creditors offering a pro-rata full and final settlement, based on the available 40k plus another 5k I have left from redundancy. I have had one reply to date which was obviously a generic response letter, which simply stated my proposal did not meet their criteria and if I was experiencing financial difficulties I should contact their call centre to arrange monthly payment proposals. The response has confused and scared me, and I don`t know what to do next..the "gift" from 3rd party will not be available for very long (and this cannot be used to simply fund continued monthly payments )and I am worried that all creditor responses will be exactly the same. I am simply unable to continue paying monthly minimum payments of over £2,400,as my only income is £59.16 weekly from Jobseekers Allowance. and the employment situation does not look too bright as I write, and I am increasingly despairing of how I respond.

Any thoughts please? The perspective you offer as a professional from within the industry is greatly appreciated !!!!

Keith

[MelanieGiles]

I would consult an insolvency practitioner immediately, in order that work can start on compling an offer for you straight away if this is the route you wish to take.

As I imagine that your friend's loan will also need to repaid, have you also considered whether bankruptcy proceedings are a better solution - as you have no assets which would be at risk under such procedure, and an inability to fund ongoing contributions until you find alternative employment.

[keith.a]

Thanks for your last response Melanie.

I need to clarify...no assets comment not strictly accurate..there is a co-owned home with recently estranged wife, which is now for sale. This will eventually generate approx 70-80k equity ( to be split 50/50). Intention is to refund friend`s "loan" from proceeds, hence effectively no assets.
As the sale may take some time in current market,friend will provide £40k immediately if full and final solution can be achieved, and will await eventual sale of property for refund.

Bankruptcy is an option I wish to avoid if at all possible.

Based on above, is an arrangement of this type still likely to succeed in your opinion? If so, can I contact you direct to discuss how we get the wheels in motion?

Thanks again....

K

[MelanieGiles]

Sorry Keith - your stamina was better than mine last night! I think an IVA would work for you here, as your friend would be merely introducing money in lieu of the equity in your property. Happy to discuss options further with you in due course.