lump sum offer or bankruptcy?

dancingfairy

A couple of thoughts:
How much do you think your family member might be able to find? What percentage of the overall debt does this work out to? Will this be a gift or will you be expected to pay back your family member?
In theory you should start by trying to settle on the biggest and leave the smallest, however my biggest worry for you is that you manage to settlde with some and not others and have to go bankrupt anyway this could also cause some problems with the official receiver as if you'd tried to settle with the biggest debts first then in theory it could be seen as having made a preferential payment to them and the OR could. in theory reverse these payments which could cause a bit of a headache for you:(
I don't want to put you off too much as I think if you can get settlements for all of them and put a line under the whole thing then that would be great but it gives you a few things to think about first.
Best of Luck
df

mr_affable

Thanks df.

I would intend to only agree paying a full and final if all my creditors were agreeable to accept a pro rata amount of the lump sum proportionate to the amount that I owe to each of them.

I guess my next question is - if they are not prepared to accept a reasonable settlement whats the point of me spending any money to make myself bankrupt - I could just go on paying a nominal amount or just stop paying anything? Realistically what are they likely to do if they havent done anything in the past 4 years?

neverbefore2011

mr_affable wrote: »

Thanks df.

I would intend to only agree paying a full and final if all my creditors were agreeable to accept a pro rata amount of the lump sum proportionate to the amount that I owe to each of them.

I guess my next question is - if they are not prepared to accept a reasonable settlement whats the point of me spending any money to make myself bankrupt - I could just go on paying a nominal amount or just stop paying anything? Realistically what are they likely to do if they havent done anything in the past 4 years?

They might decide to sell on the debt to another company who might give you much hassle

Like I said, let sleeping dogs lie - if they make any kind of a move, then think again

mr_affable

And if one of my creditors obtains a CCJ against me - if I subsequently filed for my own bankruptcy would that cancel out the CCJ? (if thats not a silly question?)

Gimpsdad

BR would cancel out the CCJ.

If you want to pay £6 per month for the rest of your life then fine.

Short informal settlements are possible, but offering them through the medium of a 3rd party funded, one off IVA, carries a massively increased chance of acceptance. Alternatively, just use that money to go BR and have done with it.

Speak to an expert, some of these answers on here will have you in debt forever and your post doesn't sound as if that is what you want at all.

mr_affable

Thanks for that.

That is the point - I understand that I could drag it on for ever and a day paying token payments etc (I am looking into unenforceability at the moment). But I really want some closure on these debts as they are part of my previous life (now divorced and with new partner).

From all the information I have gathered I am starting to think that bankruptcy is really the only way to finish it in a relatively short time and in a definite legal way.