www.iva.co.uk

How do I find out if creditors would accept Full+Final settlement on their outstanding ammounts without giving the impression that I AM in a position to do so.
There is a possibility that a relative MAY be able to help but they would want to know what sort of ammount I was looking for and even then it would be nowhere the 49k total debt. I have read on the forum that some people have paid creditors a pence in the pound percentage as settlement or is this just applicable to IVA's and not DMP.

You would have to present your creditors with the best offer in the pound you could reasonably afford, this is what I have gleaned from the last few weeks.

HTH

Hi stickman,
I contacted one of my creditors and asked if they would be prepared to take a f&f. I told them that my sister was only going to give me the money if they would accept. This was MBNA. I started at 33% and they took 40%. This was called a short settlement. This means that the outstanding balance would show on my credit rating for 6 years but they would not pursue me for this money. I have a letter to confirm this.

Another creditor, Barclays overdraft, said they would accept 66% as Full and Final.

I am in a DMP. I still have other creditors but these ones were persistant in pursuing me and making my life a misery.

The DMP was then redistributed around the other creditors and I have peace at the moment.

We are in a DMP. We offered 50 percent of the total debt pro rata (we were able to borrow 50 per cent from a family member but that was all) we were turned down .... sorry if that doesnt help

Good Luck with it all though x

Thanks all, so far.
Stell,did they tell you why they turned you down and did you ask them yourselves or through a DMP company.

Andrew Graveson of Brightoak, who regularly posts on the forum, has done a number of these types of cases recently, and you might want to seek some advice from him as to the best way to go about making an offer to your creditors.

In answer to your original question, there is a very easy way to find this out, just ask.

I would always advise people to call creditors directly and hint that there may be a cash influx coming. Simply indicate that you want rid of the debt and ask them to put their best offer in writing. The mistake that is sometimes made is to show your hand too early, offer 33% and they will want 40%. Offer 10% and you will find that 33% is suddenly very acceptable. My advice is to NEVER offer anything, just have a general chat and dangle a carrot. If you like the offer then do it, if you don't then don't.

Reading between the lines, I suspect that you are on a DMP, so if you clear 1 or 2 creditors with a one off payment then the rest will get an increased monthly payment, which is good, but you may find that the rest will then become a lot more eager to do business at a better rate to you.

There is no hard and fast rule to this, but to give you an idea, I recently cleared £15k with £6k, on another case creditors would not take less than £11k. It is a very inexact science but, generally, the longer the DMP has been running then the more amenable the creditors are.

Hope this helps.