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lastoption

Due to personal circumstances I am now at a dead end.....basically all my options have run out...and I can not see any way out. Anyway I am 35k in debt and charges alone are becoming impossible to sort. I am preparing a SOA and cut everything to the extreme. I personally have probably have to go either barkrupcy as a option or IVA, with regards to IVA I have a very good friend who said would help me out, she is prepared to lend me 15k to offer to the creditors in order to clear the debt (I know what people would be thinking anyone would want a friend like that...yes she is special and she can afford that). I would repay the debt of the 15 back to her in the sum of 100£ per month until I will be able to put myself together again...and if I would increase the payiments as and when I can. How likely are the credictors to accept a one of payment? (I do not own an house and selling my car in the next couple of weeks in order to pay for bills). I am not sure if an IVA can be arranged when a one off payment is offered? (my friend made clear that she would not be willing to lend me that sum if it would only go to reduce the debt ...as in that case I would be back to square one...as the interest charged etc on the remaining would get me back to square one (Hope I have been clear!)

Any ideas on how to go by it?

I know some people would advise on bankrupcy, but personally I would ideally want to pay some of the money back! It is not my money and would like to at least pay something back

Deep_In_Debt

Hi
Creditors are likely to accept a f&f settlement, however, not sure they will with 15k on debts of 35k. It's worth a shot though.

National Debtline website has a good template letter you can use to offer payments to your creditors.

Make sure you get the offer in writing before sending any money and that it is in f&f and that your credit file will be marked as satisfied and that neither they, nor any third party or associate will chase you for the remainder at a later date and you are released from any further liability. You could also add that you have been lent this money for the purpose of clearing your debts and that this offer will be withdrawn after xx days.

Start low - 30% and then you have room for negotiation. TBH, you tend to get better deals when debts are sold on to debt collecting agencies as they buy the debts for pennies in the poind. As you've not been struggling paying them, the creditors may not accept much less than 80%.

Have you thought about a dmp?

I would also suggest you get in touch with one of the debt charities - CCCS, Payplan, CAB or National Debtline and they will advise in your interest.

lastoption

Thank you very much indeed for your response! I was literally thinking about everything without having a clear idea! You just done that for me (I was/am a bit in total panic mode).....but indeed very much appreciated.

Deep_In_Debt

No probs.

I will re-iterate though speaking to one of the companies I have suggested - they will be able to suggest the way to go for you.

IVA's are not suitable for everyone and you would have a very tight, inflexible budget to live on each month and if it fails, could result in bankruptcy. Do think very carefully about this.

A dmp is much more flexible. You could start on the dmp route and maybe in a year or so, make a f&f offers then as some of your debts may have been sold on and creditors will see you are in difficulty.

Deep_In_Debt

Why not pop over to the DFW board and pop up your SOA and the good peeps over there will probably offer better suggestions and ideas (although I frequent that board!)

lastoption

Hi deed in debt will do! I have all the figures (and scarred only to look at them) but I have to do what I have to do! thanks you very much indeed again.

Deep_In_Debt

It is scary when you first look, but once that's over, it's a relief to get it in the open and start working on them.

BTW, the peeps on DFW will tear your SOA apart but not in a nasty way and it's to help you. Sometimes we can't see where our money is going and others spot it instantly.

a2062cad

Hi lastoption. Know exactly how your feeling, having had 3 x the debt you had. All on CC and Bank O/D. Keep going and researching. The other people who have commented have given good advice.

Whether you look at a DMP might depend on how much your have as income vs how long it may take to pay off. Don't rule out the F&F as having £15k in cash may look more attractive to creditors than waiting 5yrs.

Anyhow, you have done the best thing. You have started your journey to becoming debt free.

Congratulations and Good luck.