Offering lump sum as full and final payment

mikegilbert

I am fortunately in a position where I can offer my creditors a reduced full and final settlement payment to clear my debts ie about 50% of full amaounts owing. Is this the best way to go as being unemployed with overheads exceeding income I cannot keep up monthly payments without eating into remaining lump sum. I thought IVA were expensive and you had to pay back an agreed amount or can I offer a lump sum

gratefulforhelp_2

As I understand it, and I am no expert and will have to do til someone else comes along, if you are before the stage of a debt management plan or an IVA or bankruptcy, then you can offer f and f. I wouldn't start at 50% though! Good luck.

purpleplum

We offered a full and final payment which gave 70p in the pound. We were told afterwards that they would have accepted 45p in the pound as the debts were sold on for less than 20 p in the pound! Start on a lower offer!:eek:

Deep_In_Debt

Yep, as others have said, start low - I'd even chance my arm at 20% and then you have room for negotiation. I wouldn't let on how much you can afford to pay them though.

dog_food

I am very interested to know more...

I have another 36 payments of £340 to make, a total of £12 240. My parents have offered me £4000 to get me out of trouble. Does anyone think this is a worthwhile offer as a full and final payment or not worth even asking?

My wife is pregnant so our circumstances are changing...

Thanks

Not_so_wise_one

dog_food wrote: »

I am very interested to know more...

I have another 36 payments of £340 to make, a total of £12 240. My parents have offered me £4000 to get me out of trouble. Does anyone think this is a worthwhile offer as a full and final payment or not worth even asking?

My wife is pregnant so our circumstances are changing...

Thanks

Make the offer and make sure you put this as a reason as to why and how your circumstances are going to change. Good luck

dog_food

So do you think that this offer might be acceptable? Any one have any experience in these matters?!

gratefulforhelp_2

Deep_In_Debt wrote: »

Yep, as others have said, start low - I'd even chance my arm at 20% and then you have room for negotiation. I wouldn't let on how much you can afford to pay them though.

This is good advice, Good luck!