Is it possible to do a deal to avoid BR?

Down_not_out_2

Hi,

Am facing the possibility of bankruptcy following the collapse of a business where I had to give PG's. Total debt is in the region of £130k.

I have a question which I'm hoping for some advice on.

If I end up in a bankruptcy situation the gross pool of funds realised from my share of assets would likely be in the region of £20k once fees etc have been paid.

On a straight forward commercial deal, would the creditors accept a higher offer in full and final settlement?

My family have offered to help out but only if I can avoid bankruptcy or IVA's.

CKhalvashi

It's certainly doable, but will depend on the creditors.

It may be worth offering as much as you can get, on a 14 day only offer.

It will also depend on what stage you're at, with regard to them already issuing proceedings.

CK

Action_Jackson

A deal like that would make sense to me - cutting their losses if you like.

It's down to whether or not they believe your pool of assets will only be worth £20k after BR I guess.

One other thing to factor into your calculations is future payments to creditors via an IPA. The OR will take 100% of your disposable income for 3 years and distribute that to your creditors. So, if you had a £1k surplus per month, that would be another £36k towards your creditors in addition to the asset realisations.