offering my creditors 50% of the debt to close it?

[paul_w]

Hi Everyone,

Just a quick question. I currently am in a part time job after loosing my full time job. Even if I get a full time job it wont be enough to cover my debts (42k). In the first instance is it better to write to my creditors and ask them if they will except token payments? Additionally at a later date I might be reciving some money from a relative, is it possible to offer my creditors 50% of the debt to close it?

Kind regards

Paul

[kpw]

A Full and Final settlement might be a solution but you will need to post more details.
Are you a property owner? Any equity?
Who do you owe money to and how much?
A F+F IVA offer to creditors would include £3500- £5000 in Insolvency Practitioner costs.
What sort of Lump Sum is available.
e.g. @40p return to creditors you would probably have to find
42000 x .4 =£16,800 + say £4000(costs)
=£20800

Dividend could be anywhere from 25p upwards. An IP would have to advise you based on your overall circumstances.

[MelanieGiles]

Hi paul w and welcome to the forum

Token payments will be better than no payments, if that is all you can afford at present - but do advise your creditors of your current predicament and let them know there may be light at the end of the tunnel.

You may be able to settle for 50% of the debt, so long as your circumstances indicate that this is the best offer you are able to make for the forseeable future. This can also be done throught the medium of an IVA, if you wish.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Oliver]

Your creditors may accept this as a full and final payment in an informal agreement. You may however wish to formalise the agreement using an IVA and with the help of an Insolvency Practitioner, post some more details about your debt, disposable income, assets and secured loans so we can advise further.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp