F&F help please!

ClaireWilko

I'm hoping you can offer me some advice!

I'm currently halfway into my second year of a 5 year IVA with stepchange

I pay £242 a month (43p in the pound) and will also pay an extra £186 a month from April 2014 due to car HP finishing

However, a recent change in my circumstances (A baby) mean I will no longer have the money to continue paying the IVA. However I will have the HP payment from April. I'm worried my IVA will fail

A close friend has offered £5k as a full and final. I knows its low, but can I have your thoughts? I read here that quite a few lower offers are being accepted

Also - a recent MBNA statement (Where I owe £8k) said they are only getting £19 a month. Will this offer be better for them?

£14k is projected as being realised in the IVA, this offer plus monies paid in will equal half that

Thanks again in advance for your comments

National_Debtline

Hi Claire

Whether the lump sum offer is better for your creditors will be for them to judge - some of them may be more attracted by it than others.

Speak to Stepchange about this - they can potentially call a meeting of creditors to propose a modification to your IVA - if a majority can be persuaded to agree to the lump sum as a one-off final settlement (as opposed to the IVA continuing as originally scheduled) then it can get the green light. No guarantees but certainly worth exploring.

Good luck

Dennis @NDL