percentage payment

[cm4]

Hi, I have two credit cards that i have struggled to pay for a couple of years. One is taking me to court for approx £4k the other is prepared to accept £2550 as settlement on a £7.5k debt. I have been offered a one off lump sum from my girlfriends father of £5k which i can repay as and when i am able, i have however needed to pay council rates of £940 out of this already (baliffs were litterally at the door).

My question is, how do i get my £4k credit card company to accept a similar percentage payment to my main debt? I have tried talking to them, i have even filled out a monthly direct debit form (which they failed to use, then blamed me for not ensuring they recieved the money, then said it was not enough anyway?)
My outgoings currently allow approx £100 each month for unforseen problems and to pay my debts, would i be able to set up an iva here? as stated i already have an agreement with my main creditor to accept 34% of moneys owed.
any help appreciated

[Adam Davies]

Hi
With just two creditors it will not be possible to start an IVA.
Why not use your third party funds to pay off you council tax bill,the £2550 settlement and use the remaining £1500 to reduce the 4k card down to a manageable level ?
Regards

[MelanieGiles]

Hi cm4 and welcome to the forum

There is no easy answer to persuading a creditor to accept a lower settlement if they do not want to. Which company is the £4k card with?

You are barely eligible for an IVA, and to be honest I think that you are far better off trying to deal with this informally. Andrew Graveson of Brightoak, who posts on this forum occasionally, has a good track record in negotiating creditor settlements, so it might be worth giving him a call to see what he would recommend.

[Andrew Graveson]

Hello cm4,

Do you have any other assets (for example equity in your home)?

I ask only as if this isn't the case a properly presented short-settlement offer might be more attractive to all parties than an unproductive and expensive legal procedure.