lump sum partial payments to clear debt?

[JanM]

I owe around £70K mainly to credit card companies. I currently have a DMP which I have been paying for 11 months. My father has now said he may consider helping me BUT he does not want to pay the full amount to my creditors because a friend of his paid his son's debts but only paid 50%. Is this true - will creditors accept lump sum partial payments to clear the debt? If so, how would I/my father go about doing this? If not, then would I be better going for an IVA rather than continuing with the DMP - I have my own house and do not want to lose it as I also have 2 teenage children.

[MelanieGiles]

Hi curlytop and welcome to the forum

I would suggest that if your debts are spread over a number of lenders that it would be better to make the offer within an IVA than try to do it individually. The main benefits are that the negotiation work is done for you, but most importantly that your creditors have to make a decision on a particular day. Once made, they cannot go back on their word or charge any more interest.

If you only have two or three creditors, then negotiating with them directly will avoid having to pay IP fees, but may take a little longer whilst you try and find a decision maker within the banks.

Find out how much your father is prepared to offer to you, and then discuss this with an insolvency practitioner directly. I do lots of these type of arrangements, and they are generally met with a favourable response from most creditors.

Make sure that your IP treats your disposable income then as a loan repayment to your father - which I am sure he will want you to do!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[JanM]

Melanie
Thanks for the advice - how would the IPs fees work out - would my father have to pass these as well? How do I contact an IP in my area?

[neverending]

Hi
Your IP fees would be taken out of the lump sum that your father pays.
It would pay you to speak to a company on this forum,they can all advise and are all bona fide.
Good Luck