Deals with the people you owe?????

money_probs

I am in a considerable amount of debt! aprox 60K due to a mortgage short fall and a secured loan. These debts were joint and my ex has made her self bankrupt and that means i have 3 options:-

1) IVA pay for 5 years then debt free. as much as i can afford.
2) Bankruptcy pay for 3 years as i do have cash left over each week.
3) DMP which means i could be paying for the rest of my life.

If i explain to my creditors that i am considering the IVA and the Bankruptcy (as they are the only real solutions to my debt.) do you think a deal could be worked out between myself and them, without going down any route?

I have worked out my ins and outs and i could afford to pay just shy of 400 per month.

Obviously any deal that can be made would be required in writing from them.

anyone had any dealings along these lines or could advise as i am not sure i want to have an IVA or Bankruptcy on my record if i can help it?

Hannah_10

I am not sure I understand what it is you'd want. Can you explain a bit more?

chevalier

Not sure quite what you are asking, but if your OH made herself bankrupt wouldn't that mean that her half of the debt so 30k would be wiped out, and you would only owe 30k?

NeverAgain_2

Secured debts - which you say these are - do not normally fall into bankruptcy, so I'm not sure that will help you.

What is the security?

money_probs

The security was the house that we got the secured loan on which got repossessed. I am asking if it is possible for me to offer 400 per month for 5 years which will pay off 24,000. This works out to be 40% of the overall debt.
Is it possible to get this as a "deal in writing" for full and final settlement of the outstanding sum owed along the lines of above? or am i barking up the wrong tree and should go down the IVA / Bankruptcy route? i don't want an IVA or bankruptcy on my record.
I have no savings so would be unable to offer a cash lump sum.

money_probs

chevalier wrote: »

Not sure quite what you are asking, but if your OH made herself bankrupt wouldn't that mean that her half of the debt so 30k would be wiped out, and you would only owe 30k?

Looked into it and no i am now responsible for the lot! great eh!
See my last thread hop this makes sense?

money_probs

Hannah_10 wrote: »

I am not sure I understand what it is you'd want. Can you explain a bit more?

Please see my previous thread hopefully that explains?

Tixy

money_probs wrote: »

I am asking if it is possible for me to offer 400 per month for 5 years which will pay off 24,000. This works out to be 40% of the overall debt.
Is it possible to get this as a "deal in writing" for full and final settlement of the outstanding sum owed along the lines of above? or am i barking up the wrong tree and should go down the IVA / Bankruptcy route? i don't want an IVA or bankruptcy on my record.
I have no savings so would be unable to offer a cash lump sum.

No - this wouldn't work, i cannot see that they would agree to this, never seen anything along these lines, its either a DMP and expect to pay back it all (although in practice F&Fs later on may reduce this), or go for an insolvency option.

Have you had some advice from one of the debt charities yet? If not I would talk to them to talk through their recommendations.

money_probs

when i talked to them they offered me 18,000 for F&F. But becanuse i dont have them funds i said i cant afford it and would have to work out how much i can owe. Thought i would just ask the question as i was hoping to not go down a IVA or bankruptcy route but it lookes like it is my only option. i cant afford to spend it all back as i would be paying for 12.5 years and i want to be debt free asap to be honest.

Broken_hearted

Have you worked out a full SOA based on what you need to live on. I would use £250 a month to pay the creditors on a DMP and put the rest in saving for a F&F.

Tixy

Broken_hearted wrote: »

Have you worked out a full SOA based on what you need to live on. I would use £250 a month to pay the creditors on a DMP and put the rest in saving for a F&F.

How would that square up on the SoA though? In a DMP you need to pay all your surplus over to creditors. It would be hard to 'hide'/bump up costs by as much as £150 a month on your SoA and still get it accepted by creditors. And if they think you are not paying all you can afford it decreases the chance of them agreeing to freeze interest and increases the chance of them taking you to court.