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Have not entered into a iva yet.

Debts total £45k, have relative who says if put it in writing offer to lend me £18-20.

If i was to right to creditors would they think cheeky in offering this.

Its the most i could afford and would put a end to the worry.

Read that some iva creditors mite only get back 30-40p in £ is that after iva charges

Hello Trog

An offer of 45p in the £ generally would be looked on favourably by creditors if they were satisfied that you really couldn't pay off the full amount and that the offer that you were making was the best one that they will get.

There's no technical reason why you shouldn't make this offer yourself, outside of an IVA, but in doing so you're likely to hit some difficulties which you may not be able to overcome.

The most practical ones are actually proving that you can't pay in full and that 45p is the best offer you could make. Whereas in an IVA there is a standard procedure for setting out the reasons for the offer you would have to do this on your own and some of the creditors are likely to be suspicious and will want a great deal of information from you before they make a decision.

The next problem you will have is that creditors are unlikely to make their decision at the same time so you'll be left in a situation of having agreed to settle with some, but with others possibly still holding out for the full amount.

As I said all of these issues can be resolved but generally I would say that if you have three or more creditors you would probably be more likely to acheive acceptance through an IVA than outside of one.

If you were to propose a full and final settlement offer to creditors an insolvency practitioner would charge a fee of somewhere between £3.5k to £5k which would come out of the money that you are offering to creditors and would reduce the amount that they get back.

Obviously creditors will take this in to account when voting for your offer but an immediate return to creditors of somewhere in the region of 40p would still normally be regarded as attractive if creditors were persuaded that you would be unable to pay off the whole debt which would have to be explained in the IVA proposal.

Hope this helps.

One of the key things that creditors will look at is what actual assets you own - property? car? stocks and shares? other investments? and what level of disposable income you actually have. Assuming that your lump sum offer would exceed the amount they could reasonably be expected to be paid over the five year period, discounted of course for cost savings, your offer ought to be acceptable.

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

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http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp