Lump sum available for full and final settlement

[posuns]

I may have a family member who could provide me with a lump sum.Could this be used to offer my creditors a full and final settlement IVA?? I have a mortgage and a share in the equity in my house.Total unsecured debt of £65000,My share of the equity will be around £18500.

The way I see it is if I go bankrupt then they will get £18500 (I have no disposable income)
If I offered them £20000 in full and final settlement then they are better off.

Would anyone be able to agree or disagree with the above?

[iva_squirrel]

Hello,



A Full and Final settlement IVA is a legally binding arrangement with your creditors which allows you to repay a proportion of your debt in a one off lump sum payment.

Normally the lump sum is raised by remortgaging your property or introducing a lump sum from relatives. .

This is an ideal solution for individuals who are able to raise a sum of money, but after providing for their reasonable costs of living including their increased mortgage payment, do not have any surplus income.

Creditors are likely to accept your full and final settlement if we can demonstrate that this offers a better return than bankruptcy.

You need to contact your IP regarding the amount you are able to offer.


Kind regards,



Julia



For more information about IVAs, please visit my website:
www.supersonicsquirrel.net

[MelanieGiles]

Great advice again from Julia. Just make sure you don't have any debts with the creditors who have higher minimum dividend requirements, such as HSBC or Northern Rock as £18,500 may be insufficient for an IVA.

Also, if you have disposable income, the creditors may well ask you to make monthly contributions as well, so make sure your relative's money is treated as a loan, and use your surplus income to make monthly repayments against that loan. I also suggest that your relative takes some form of security against your property, but of course that is a matter for you two to decide privately.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk