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We have 14 creditors and owe around £108,000 in secondary debts.We have no primary debts we are selling our house which when completed will give us round £46,000 after paying off mortgage and charging order,we will be left with 13 creditors and £97,000.We would like to make settlement offers that are realistic.Could you advise?

Hi mcg and welcome to the forum

So you will have £46,000 to deal with creditors totalling £97,000 of which you have 13 in number. I would recommend that you consider proposing IVA's to your creditors - as if you try to do this outside of insolvency proceedings it is likely to take far longer and you may find that not all creditors will agree to the same settlement.

One of the real advantages of an IVA, is that your creditors will have to make a decision on a set day in time, and then you will know exactly where you stand. Trying to negotiate with 13 different creditors all at the same time can be very difficult, and of course interest will continue to accrue on the accounts whilst you are negotiating.

I do a lot of "full and final settlement" IVA's and creditors are very receptive to this type of proposal as they get their money fairly quickly after acceptance.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Cheers Melanie

A little more info we are on a DMP withh CCCS so interest is already frozen,can the IVA be done without incurring IVA fees from practioner Because the more money we offer the creditors the more likely they will accept?

I am afraid that we are also running businesses mcg, and unfortunately we do have to charge of our services otherwise we would be doing IVAs ourselves!

The IP fees which would be payable, would be unlikely to make any difference to whether your creditors accept your offer or not - which I personally feel is a good one.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

With 13 creditors the "do it yourself" route would be a long and tiresome one. What if half accept variable percentages and half don't. What if one of those goes for another charging order in the interim ? Best to force a decision under an IVA wrapper. The several thousand pounds it will "cost" the creditors will equate to only a few hundred pounds each from each of them if you look at the bigger picture.