Settlement Advice

wil992

Hello,

i've just joined the forum becasue i'm seeking advice.

A relative of mine has debt problems following a no doubt familiar spiral of ill health triggering panic borrowing eventually leading to unmanageable debt with a variety of creditors totalling almost 40k.

They've done the right thing and approached step-change who have them on a debt management plan.

In spite of this, they're struggling and the ill-health that triggered the whole thing is being made much worse by their struggle to maintain the payments they have agreed (£900/month).

I'm in a position where I can help them and they have finally agreed to let me.

I want to make a full and final settlement offer to their creditors that is a proportion of the total outstanding but don't really have any clue what would be the best way to do this.

Obviously I'd like the settlement to be as low possible in order to minimise my total outlay.

Does anyone here have any advice for me please?

Thank you.

Foxy-Stoat_3

If they decided to go down the IVA route then the creditors normally receive 25p to the pound less the IP fees.....I would aim for that kind of figure and see how they go. Obvioulsy you'll want to word the offer some thing like:


I wish to make it clear that the funds will only be available for full and final settlement of the debts of blah blah blah and should this not be accepted, the offer of the funds will be withdrawn, the funds will be retained and will no longer be available to blah blah blah for any other purpose of the settling their debts.