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If you have an amount of money to offer creditors yourself eg 55 per cent of what you owe them and you had previously distributed your income and expenditure, which had been investigated by a third party financial advisor as a DMP. The DMP would take about 21 years to repay. Would it be better to do this or go for an IVA settlement even though the creditors would get less????

You are unable to work, living on benefits and need regular hospital visits.

LILY

I believe that angels breathe and love will live on and never leave. I cherish all you gave me everyday.

Lily

Is this question about you? If so, only you can decide what is better in the long run - DMP or IVA. You have to balance whether a five year settlement is better for you than a 21 year settlement - most people would plump for the former, but if you are the type of person who wants to make every effort to repay their debts in full, then perhaps the latter option becomes more favourable.

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

Its a hypotetical question at this point, I meant a full and final lump sum (with a bird in the hand, rather than a bird in the bush) in which the IVA would return less to the creditors than a direct approach would.

Thanks for a prompt reply

LILY

I believe that angels breathe and love will live on and never leave. I cherish all you gave me everyday.

If I had such a dilemma, it would be a lump sum IVA for sure. However, it would depend on how much debt we are talking about. If the debt is relatively small, and there arent many creditors, the creditor(s) may accept a Full and Final settlement without an IVA bearing in mind the debt would take 21 years to repay through a DMP and that a IVA would involve fees. This type of offer would probably have a greater chance if not being able to pay was down to something like illness.

Only two really well three if you count hsbc/ hfc as two but they are related. Just wondering what the answer is for someone like this. The lump sum is available from a third party now but are the creditors likely to accept it??? I dont really want a long run. Just some hope of closure.

Have seen so many people come here and get sorted but if you are not an ideal candidate for an IVA, have a lump sum waiting, DMP is just too enduring and stressful, whats the answer???? Apart from BR or is this the only option???

LILY

I believe that angels breathe and love will live on and never leave. I cherish all you gave me everyday.

can an IVA be done with only 2 creditors?

LILY

I believe that angels breathe and love will live on and never leave. I cherish all you gave me everyday.

Lily

An IVA with only two creditors is unlikely to be acceptable. The general rules are four individual creditors or more. With only two creditors, you are better off trying to negotiate directly although this may take longer. The answer is to start negotiating if you are certain that the settlement monies are readily available.


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

Thank you

A family member has offered the money and will pay the creditors directly, around 15-18K. So it all depends if the creditors accept it. I really hope so. I really, really want to move on.

LILY

I believe that angels breathe and love will live on and never leave. I cherish all you gave me everyday.

I would think they will stand a very good chance (armed with a fact they'll have to wait 21 years in a DMP!), though you might need to haggle & insist this is the best return they'll get and hold your ground for a while. They'ld most likely sell the debt on eventually anyway and get a lot less than 55p/£ for it!

Good luck Lily,i really hope you can put closeure on this part of your life that has weighed you down for so long,and finaly be free to live a life with out the constant threat to you and your family.
I hope you will still post the forum would miss you sooo much if you didnt offer your advise and your kind words have helped so many posters myself included.
As i said Lily really do hope this works out for you.
Take care

Tracy x

Tracey h

Thats really kind of you, I was feeling quite down yesterday but you have made me feel so much better. Send your positve thoughts and lets hope they accept and I can be a free lily.

LILY

I believe that angels breathe and love will live on and never leave. I cherish all you gave me everyday.

Lily im a very spiritual person and in the past before my own health started to suffer i did healing in a spiritual church,and got great comfort from helping people.
It may sound strange but i have been really concerned about you,for the last 7-10 days i wouldnt pry but i feel you have had some real trauma happen and wanted to let you know Lily i will definatly be sending you positive vibes and to let you know you are not alone.
Hang in there i really think your fresh start will begin soon xx

hi
Strange that, I was due an op on 2nd May but they couldnt do it due to a very low blood count, and I was due for a transfusion on Tuesday. I have been so worried about what the cause is, so much more scared than I am about the debts. I still dont know the cause but I think if it was anything really bad I would know by now. Keep sending those thoughts, please.

LILY

I believe that angels breathe and love will live on and never leave. I cherish all you gave me everyday.