Lump sum IVA

Peter_Pan

I called payplan yesterday as to aviod bancruptcy on my part for debts of £6K my parents have offered me an amount of money and i thought a lump sum IVA may be the way to go but they only do this with debts of over £15K , do you think i could write to creditors myself offering an amount (my parents can't cover the full amount but as OH is going bankrupt next week they want both of us to have a clean slate), if it is an option what percentage should i offer initially, or should i just divide what my parents can afford pro rata with the debts(3 creditors), my thinking is at least they will get something this way rather than nothing if i went bancrupt (housewife with 3 children and no assets) which would make OH feel better as hes finding it hard to cope with the fact hes going bancrupt, would make my parents feel better and also make us as a family feel better that at least we have paid some of the debt back.

Opinions please

fermi

Gotta be worth at try, especially if you tell them it's either that or you go BR yourself. You wouldn't lose anything except the cost of stamps.

Have a read through the National Debtline advice on "Full and Final Settlements":

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

Peter_Pan

Thanks Fermi for the quick reply.

I don't know how i would've coped with the last few weeks without this forum and when it went down i did panic but thanks to everyone on here we can see the light at the end of the tunnel and a HUGE lesson learnt.

Peter_Pan

After a lot of researching on this forum , National Debtline info and other places I have come up with this letter, can i have peoples thoughts please (the amount i am intending to offer at this time is 50% of the balance owing)

WITHOUT PREJUDICE
Re Account no ***********

I write with reference to the money which you are claiming on the above account.

I can confirm that I have been in contact with the CCCS in order to sort out my finances due to a change in my circumstances and they have advised me that in the event of a bankruptcy, all foreseeable income would be inalienable under the Social Security Administration Act 1992 (Child Benefit/tax credits) and that as I have no significant assets it would be in my interest to start bankruptcy proceedings.

Nevertheless as a responsible debtor, I wish to find a way to amicably settling all outstanding debts. I would therefore ask you to accept a notional payment of £1 a month on the debt and to freeze any further charges on the account, with the expectation that this would be reviewed in six months.

Alternatively, I can offer you a pro-rata payment of £*** via a third party as an ex-gratia payment in full and final settlement of the account. This offer is made on the clear understanding that, if accepted, neither you nor any associate Company will take any other action to enforce or pursue this debt in any way whatsoever and that I will be released from any liability and is a time sensitive offer.

I also request that, if accepted, you will mark any entry on a credit reference agency file relating to the above account as “satisfied” in full.

Payment can be made within the next 28 days of receiving your written agreement of this offer and method of payment.

At your request I am quite prepared to inform you of how I have apportioned the funds to yourself and the other two creditors involved.

I look forward to receiving your reply.

tigerfeet2006

Would it be worth asking them also to put any acceptance in writing. Then if they start being funny at all you have proof.

Peter_Pan

tigerfeet2006 wrote: »

Would it be worth asking them also to put any acceptance in writing. Then if they start being funny at all you have proof.

I think this paragraph has covered it tigerfeet2006, what do you think

Payment can be made within the next 28 days of receiving your written agreement of this offer and method of payment.