One off payment to settle

migwella76

Hi all,

I have been on a DMP for close to 2 years. I am with CCCS

I have paid off £3,000 of what was a £38,000 debt. Just the £35,000 to go ....

I currently bring in £1,200 all of which goes on my SOA, bar £135 for the DMP.

My circumstances have changed recently as my mum has developed dementia and I have moved back in to the family home to help care for her and take some strain off my dad.

My mum and dad have a good deal of support financially and have some savings which they want to use up. They know of my situation and have proposed helping me out pay off my debts.

Has anyone done a one-off IVA payment before? I have worked out that 30% of my debt is £10,500 which my folks are willing to fund.

Thanks in advance
Mike

sarriep

Sorry to hear about your mum.
How far have your debts gone? You may be able to offer F&F settlement offers especially if they have been passed to debt collection agencies. I thought IVAs were only for homeowners? But I really am no expert - just trying to help!
Sx

Deep_In_Debt

Hi
Is it an IVA or a dmp you have?

Not sure on lump sum payments on IVA's but it is possible with a dmp. As other poster has said, I got better, lower settlement figures when my debts were passed to DCA's as they buy the debts for peanuts! However, if you are in an IVA, I don't think that debts do get passed on but stay with the original creditors but I could be wrong.

migwella76

Hi all,

Thanks for taking time to reply to my post.

I am on a DMP with CCCS.

Is it possible to get passed over to a debt collection agency? Sounds like that is the ideal thing to happen to me ... never thought i'd say that ... how bizarre.

Do you mind me asking what % of your debt your final settlement was?

I did wonder with the current liquidity problems about for our banks if they'd actually be happy for me being able to offer a final and full settlement rather than paying my £135 over the next 26 years.

Thanks
Mike

stapeley

I would strongly advise you if you do not own any assets to look at bankrupcy . It really is not as bad as it sounds , and would cost around £700 I think . Your parents would then not have to bail you out . You can make a fresh start . good luck.

migwella76

Thanks again for the reply.

I have a flat and am self employed (ltd company) so bankrupcy isn't an option.

stapeley

I would borrow a couple of hundred for a good solicitor , may save you , or parents afew quid !

Deep_In_Debt

Hi
Sorry for the delay in replying. Some creditors will pass on the debts to DCA's quite quickly, others take a while. Perhaps you could put the money into a high interest savings account until the debt gets sold on, then you can earn a bit of interest on it too.

I cleared 2 of my debts that had been passed to DCA's at 45% and 55%. The original creditors would accept nothing less than 70%.