F&F Settlements.......

corks_2

Hi all i'm Corks, first time poster, long time viewer blah blah blah.

I'm 22, live with my folks and am in about 20k of debt over 6 creditors now a relative has offered to give me 10k (was going to be my inheritance) to pay off my creditors.

I've been severely struggling with my payments and have been dealing with Payplan on a DMP for a year now.

Is it worth offering my creditors a full and final settlement of 50%?

The way I see it I'm not far off bankruptcy and being 22 its not as if I have any assets they can seize so they're getting off alright as far as I can see compared to the costs involved in it going through litigation, chargeoffs etc.

What are your thoughts?

Corks

fatbelly

corks wrote: »

The way I see it I'm not far off bankruptcy and being 22 its not as if I have any assets they can seize so they're getting off alright as far as I can see compared to the costs involved in it going through litigation, chargeoffs etc.

Then maybe bankruptcy's your best option. It would only cost your relative £510.

Difficult to advise without more info. It may be better posting on the debt-free wannabee board and doing a statement of affairs

stephane_2

You should avoid bankruptcy at all cost and only consider it as the last resort, you are young and that is the last thing you want, it will follow you for many years to come.
If you are about to consider offering a F&F settlement to your creditors then I would offer each of them to start with 25%/30% of balance outstanding (always make the offers in writing) and if any of them accept the offer please ensure that you get a written confirmation before you give them any money.

Rafter

Ouch!

Bankruptcy is a major step and will severely reduce your ability to borrow anything for 6 years or even think about a mortgage etc before you are 28.

You have obviously been allowed to borrow far more than is sensible for a 22 year old, but a bankruptcy judge may be unsympathetic if you have spent the money on having a good time and living beyond your means (rather than a failed business venture or being made redundant)

Defaults are going to sit on your file for a while anyway.

Suggest you try stephanes suggestion and make a low offer.

Good luck

R.

corks_2

Thanks guys, although I am rather shocked that my first response on here was 'go bankrupt' figured people were more clued up on here than that.

I'm no coward i'm not going to declare myself bankrupt because I was stupid for a few years and spent more than I could afford to pay back without it being a very last resort. Its not the banks faults its mine for spending it and the sooner this country wakes up and realises that banks didn't hold guns to their heads and make them spend the credit the sooner this country can get out of this mess.

I'll see where the offers get me.