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Posted: Mon Feb 26, 2007 4:55 pm
by freelili

If one has a debt of 32,000 £ and comes into 35,000 or 45,000. Is it worth offering the creditors say 75 per cent of the debt or asking them for a full and final settlement figure. An IVA would not be an option as the person is no longer insolvent,right?


Posted: Mon Feb 26, 2007 5:00 pm
by Help-Is-Here

If you look in your proposal, there should be a paragraph on Windfalls.

If you get a windfall you must notify your supervisor.

IVA's are there for people who cannot afford to pay their debt back in full, so if you can, it is only fair that you do so.

Posted: Mon Feb 26, 2007 5:05 pm
by freelili
Thank you.

I am not in an IVA, I am in a temp DMP, my supervisor is aware of my situation, I wanted to check out the advice. I am not sure what you are saying correct for though.

Thank you anyway


Posted: Mon Feb 26, 2007 5:48 pm
by MelanieGiles

You bargain away with those creditors to your heart's content - there are deals to be done with every single one of them - one of my clients just got MBNA to accept 30p in the £ outside of an IVA which was offering 40p - Bizarre!

And you are far better doing it yourself than paying someone else to. Most of your creditors by this stage will probably be in the process of selling the debts on anyway, so I would try an offer around the 30p in the £ mark and see how far you get!

Just think, all of those creditors who have been hassling you for so long accepting 30p in the £! Set yourself a challenge and go girl!

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

For further details contact me at and view my IVA blog at:

Posted: Mon Feb 26, 2007 6:10 pm
by freelili
Thank you so much Melanie

I think thats what I wanted to hear, I only expected around 20K but its actually more than I owe (Perhaps only a few grand more). I have heard so much about paying debts back in full being the only way, and is perhaps the moral thing to do. I dont want to appear greedy, well maybe just a little bit, lol. But when you actually have the money, I suppose its a security thing, you dont want to let it go. I really have learned my lesson though, I promise.

Thanks to everyone who has supported me through out this time, I will let you know what happens.


Posted: Mon Feb 26, 2007 7:31 pm
by jamesfalla
Hi Lily

My experience is that as you are in a Debt Management Plan, then this will set you in good stead for barganing with your creditors. Have any of them passed your account over to debt collecting agencies? If so then it is well worth contacting the agencies and asking them what they would accept to settle. Of course do this with the ones that are still with the origional creditors as well.

You should say that a family member may be able to give you a lump sum if the creditor is prepared to settle. They may ask you how much you have got and i would go in at 50% of the current outstanding balance. I have seen many examples of settling at 50% of the original debt in this way.

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions for over 10 years.

For more information visit and visit my blog at:

Posted: Mon Feb 26, 2007 9:45 pm
by freelili
Yes some have its all being dealt with by the supervisor, I send all the letters to her. I have a loan and credit card with HSBC, they accepted the credit card on DMP but not the loan, I dont really understand this logic.