Settle without IVA or other solution.

Drum_Master

Hi,

Could anybody offer me advice or has anybody had experience of settling debt with companies without seeking an IVA or other solution.

I am currently in a situation where I require an IVA. I ow roughly 30k and on an IVA this would be repaid at about 10-12k.

I have been offered money from a 3rd party to pay off my debts but they could only give about 12-14k and has stated that this would only be released if I could clear all of the debt. I am aware that if I choose the IVA it would roughly relate to 30p in the pound from which I could offer a final settlement from the start (whether this would be accepted I do not know) but this would still leave an IVA on my credit report for 6 years.

If I approach the companies myself and offer a settlement explaining my situation and that I could possibly offer more now than they would receieve from the IVA, what are the chances they would take up this offer and how do I pursue this avenue?

I am also in a situation where I may not have a job past January 31st so would they take this into account (should I mention this) as bankrupcy would mean they recieve no money back.

Any advice regarding this situation would be greatly recieved.

Kindest regards

Azulay111

happy_bunny_2

Hi there,

What is the current status of the accounts? Up to date, late payments, arrangement or defaulted?

This will make a difference as to your options as companies rarely accept full and final offers if not somewhere near the default stage.

HB

Drum_Master

Dear Bunny,

Thank you for your response. Currently I have never missed any payments but this could certainly change in the coming months.

I am potentially looking at an IVA very soon and am in the process of finding out the information. If this is my option than the companies will recieve less than I could offer as settlement.

I currently have 30k debt and am struggling to make all the re-payments as I now only earn 18k a year and have very little spare money.

As I have been offered a 3rd party situation how could I approach these companies? Loan with Tesco, cc with 3 companies and 3 overdrafts.

If I do take the iva option than the companies will get less money overall and also over a longer period of time rather than upfront. Additioanlly as I may lose my job come Feburary I may have to file bankripcy in which the companies would recieve no return. I wish I could repay all of this debt but unfortunatly this has been taken out of my hands so I am looking for the best solution avaialable for all parties.

Thank you in advance for any response and if anybody else has any experience of these situations I would still be very keen to hear your opinions.

warm regards

happy_bunny_2

If I were you, I would call stepchange or another debt charity to see what they recommend.

Unfortunately, creditors systems don't always allow for logic and they may just reject everything as they have processes to go through etc.

Good luck

HB

Drum_Master

Hi Bunny,

thank you for the advice, I have arranged a phone call with Step Change for Saturday and am also meeting with somebody from the Citazens advice Buroit.
Hopefully logic can prevail and although I realise I will be slightly cheating the system and not paying my dues, I can give myself a new start and make up for this in my future years!

Thank you again

happy_bunny_2

Let us know what they say

Drum_Master

I will make sure of it!!!

sourcrates

While you are still up to date with payments no company will even consider taking a lesser amount than you owe, you have to wait until the debt is sold to a debt collection agency before they would even consider doing that, and as you have not defaulted as yet, this is a long way off, I would not normally suggest this as a course of action, but if you stop paying for 6-9 months or more, then the debts may have been sold on and a DCA will be more likely to take less money.

Drum_Master

Hi SourCrates,

Thank you for your response,

I am due to speak to a couple of charities as I have mentioned above but are you aware of any other options I could take other than an IVA?

I wouldn't feel right about just defualting on my payments as this is my responsibility to fix and I am looking for the best solution for all parties.

Thank you

happy_bunny_2

sourcrates wrote: »

While you are still up to date with payments no company will even consider taking a lesser amount than you owe, you have to wait until the debt is sold to a debt collection agency before they would even consider doing that, and as you have not defaulted as yet, this is a long way off, I would not normally suggest this as a course of action, but if you stop paying for 6-9 months or more, then the debts may have been sold on and a DCA will be more likely to take less money.

Not quite true. I've had a few offers to settle from the original creditors, although after default. They are all completely unenforceable mind.

Very unlikely to settle for less before default.

chevalier

You would pay back the money via a debt management plan (dmp).
Whilst waiting for the phone call from Stepchange, you could use their debt remedy tool to see what it suggests. Would give you an idea of where you are at
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