Hello I have unsecured debt of £62k

[Derek.k]

Hello
I have unsecured debt of £62k, i have been offered a lump sum that totals £12k to pay off these debts. Would my creditors accept pro-rata payments that work out to about 20% of total figure. i have been on a informal arrangement plan for three years now and not missed any payments. This is my one and only chance to clear the debts as the struggle to maintain the payments might force me into bankrupcy

[Broke of London]

Hi and welcome! Using a very generic, approximate fee calculation, it looks as if you would return about 14p/£. This is doable but you really need to speak to a couple of firms for their advice, try www.iva.com for a recommended listing. Good luck x

[Michael Peoples]

It certainly seems like a one off IVA is an option but there are other factors to take into account. It would be very difficult and timeconsuming to try and negotiate individual settlements with each creditor whereas an IVA would be legally binding within weeks and you could be debt free within a couple of months.

Get some free advice from an IP firm.

[Chinochihuahua]

We completed out single payment IVA about a year ago on pretty much the same figures. Speak with a few IP companies, but we used Melanie Giles and the process was completely pain free!

[Tina Shortland]

Hi Derek.k - welcome to the forum. As the others have said it sounds like you have a viable offer to put forward to the creditors which if accepted could free you from the ongoing informal arrangment you are currently in.

It will still be on your credit record for 6 years like a normal monthly contributory IVA but once it is accepted and the funds trasnferred you will no longer owe your creditors any money and, depending on which IP you have represent you, there will be no separate fees to pay, it will come out of the pot you are offering.

Regards,