www.iva.co.uk

Hi

We were told by a legal team that to propose lump sum offers it should be done with the aid of an IP and that this was a legal requirement.

However, I had a phone call earlier from one of my creditors and they were happy for me to submit an offer too them?

CONFUSED.COM!

Hi Simon
I dont think there is anything to stop you making a full and final offer to a creditor but this would only be that one, you would be better through an Ip as this would deal with all of the debt and all of the creditors, if you did it with one you would have to deal with all of them seperately and some may not want to . I would think it could end up confusing and difficult to do whereas with an IP it would e done for you.

Ang

Just a thought, but if you could deal with your creditors yourself you would save the IP fees, meaning there is more in the pot for the creditors, which might make your proposal more attractive to them.

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Hi
Yes,Just to agree with Ang.
If you are not already in an IVA then you are free to negotiate your own settlement but you may be better to do this by way of a full and final IVA using an insolvency practitioner.
Regards


Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

I'm all set to go with my IP I believe but this really took me by surprise... we were told that legally we were not allowed to make offers ourselves and that an IP was a legal requirement?

Hi Andy - just one thing - as this creditor offered us the opportunity to submit a lump sum offer, would we be able to take advantage of this and then go through the rest by way of a F&F Settlement IVA with an IP?

Secondly - I have a repayment break on one of my loans whereas I'm missing payments with the others - is this going to be a problem? I'm worried because I'd forgotten to cancel a DD to one of my creditors and a payment came out so I haven't missed a payment with them yet and because of this they are refusing to discuss any BR / F&F IVA options...

If you are going to use an IP anyway then it would be wrong to pay off one creditor preferentially beforehand.



Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

It is not illegal to offer settlement directly to creditors but it is often better done for you by a third party. CCCS give guidelines on how to do this. Some people may have enough capital to offer to creditors directly but not enough to pay IP fees on top so therefore they may have no other option. Paying one creditor above all others can be seen as creditor preference. However it was unintentional on your part. Your IP will disclose the full facts of your financial affairs to this creditor and the decision makers will then be able to make a fully informed choice on how they wish to proceed with your case. They may not have that now and the person/s that told you are not acting on the full facts.

Good luck Simon

lily

Insolvency practitioner will only usually make offers of settlement via formal insolvency proceedings - such as IVAs or Scottish Trust Deeds. It is in no way necessary to employ an IP if you wish to submit an offer of settlement to the creditors directly.

The downside of trying to do this yourself, is that you may go round and round the houses trying to find a decision maker, and never find an equitable solution.

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

Simon
In response to your specific question.
You can,t pay one creditor off and then seek an agreement with others in an IVA.
You need to pay all off outside an IVA or all off inside an IVA.
One or the other
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Thanks very much - I'm sure that's what we'll do then.

Melanie, no doubt we'll speak at some point then, or my Uncle will, enjoy your break and thanks for everything.