Daughter owes £20k between 5 lenders.
It's been suggested by an IVA handling broker, that £7k might be acceptable to settle.
A relative may be able to find the £7k, but need to be confident about house equity.
£120k is owed on house, it is possibly worth £160k ( maybe less on a forced sale?)
She is a single mum with young child and on benefits.
Is her equity safe?????
I'm no expert, but I don't see why lenders would agree to receive approx 33p/£ when there's enough equity that bankruptcy would give them 100% of their money back?
Under the circumstances wouldn't a remortgage enable full repayment without permanently trashing your daughters credit file?
Last edited by ilikewatch on Sat Oct 11, 2014 9:11 am, edited 1 time in total.
"If you think it's expensive to hire a professional to do the job, wait until you hire an amateur."
I would discuss the feasibility of a one off settlement with a few firms direct to canvass opinion.
It is possible to make an offer which excludes the equity, but, as mentioned above that particular cherry might be too tempting. That said, if the debt is evenly spread, each lender might not feel it's worth their while to recover around £4k.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014