www.iva.co.uk

Hi. I have been struggling to make any payments to my 3 creditors for around 6 months and things don't look like they are going to improve. I am about to sell my car. The money I get from this would cover about 50-55% of my debt. I literally have no disposable income from month to month. Any ideas how I would be able to offer this as a settlement? I have tried speaking to one of my creditors, but they weren't prepared to drop to this level. I currently have a vehicle worth over £1000, so a DRO is out. Any advice would be greatly appreciated

Once the car is sold, you won't have a vehicle worth over £1000.

I would write to each creditor explaining that you are willing to sell the vehicle to fund a settlement circa 50% of the debt. If this offer is refused then you will apply for a formal settlement arrangement, such as DRO or an IVA, which will get them a far smaller return ( if anything).

Sorry, I should have explained that better. 2 cars in the household. Keeping one and selling one

They don't know that

Thanks Foggy

You could threaten bankruptcy if the car is the only asset you have (you don't need to go through with it) and suggest that they will receive nothing in Bankruptcy...