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Hi Since my first visit to this site in December, I have put on hold paying my creditors until my house was sold and I knew where I stood with my work.

I have also written to all my creditors asking them to put Interest and charges on hold until I had the above resolved. They didn't!

I am now days away from completing on the sale of my house and I will be staying with a friend and her father for the time being.

It would appear that I will have £40,000 left over after paying legals agents and moving costs. My residual unsecured creditors amount to £98,500. At the moment my self employed earnings are only £1,200 per month and are probably going to fall until the recession ends.

My question to the forum is: Would it be worth my while writing to my creditors asking them to accept my £40,000 pro rata at 40.6p in the pound as full and final settlement and would you think that they would accept this, than for me to pay back family and friend loans (not included in the unsecured loans) and declaring myself bankrupt as my earnings will hardly cover my rent and necessary expenditure.

I look forward to your reply

That would make a very good IVA offer Mark, it buys you certainty that all creditors are bound by the terms of the IVA, and that they have to agree on one day in time, thus enabling you to put the whole thing to bed and draw a line under it.

Your IP will also need to look at your income and expenditure to see if you could afford to make ongoing contributions, but if there is no surplus this could be all over very quickly for you.

I am actually just closing a full and final offer case where we had the creditors meeting just six weeks ago - so if you have the money available it shows that things can be done with remarkable speed using the IVA procedure.

You should not try to do it by yourself.

You need to have a chat with an IP and give him/her details of all your personal and financial circumstances and particulars.

Visit www.iva.com for reviews on firms and practitioners and select one or two to have a chat with. They will give you
the most appropriate advice and it is free.