I am wondering if anyone can help me please? I have received my proposal to sign from Stepchange and return back but it looks as if a family member may be considering helping with a lump sum settlement? I have spoken to my IP and they cannot advise any kind of an amount. The budget we put together changes 3 times over the next 12 months as I am currently pregnant so situation will be changing over time due to maternity leave, eldest child starting school etc so I don’t really have a consistent budget to calculate against. Total debt is just under 41k.
Any advice or suggestions would be very much appreciated please? As just really not too sure where to even start with this and am desperate to get this sorted ASAP.
We own a property too. I can provide further info if needed. Thank you
The person who is thinking of offering a lump sum - have they indicated how much they are able to give?
I would be tempted to hold off from signing any iva proposal and seek support through the citizen advice bureau to see if creditors would be willing to agree a settlement direct based on your circumstances - but this does hinge on the amount available and how open your creditors are to make a deal !
Otherwise the iva is your next option in my opinion, however, making a full and final offer will still keep a record on your file for 6 years from the date of acceptance. It is difficult to guide on what the full and final offer is based on with the information provided in your post ..we would need more detail around the monthly payments suggested and the equity level in your house before anyone could give a potential figure.
Sorry not able to be more specific.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Had you already started the IVA you would have a guide as to what the creditors would accept over the term and base the offer on that.
Shooting in the dark I would say an offer around 33% ( a third of the debt) would be a starting point. Approaching each creditor direct would mean that some will refuse (maybe all) as they are not tied into any particular solution like an IVA and are free agents. But, it would mean that your credit record wouldn't be trashed for 6 years.
You could combine solutions and make a lump sum IVA --- which is, basically, an IVA based on one single payment. Yes, it trashes your credit record for 6 years, but it binds in those creditors who might not otherwise have agreed (assuming you get the 75% yes vote from the others).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk