Bankruptcy or Full/Final Settlement Offer??

magpie69

I'm new to the forum and am hoping you may be able to advise me!! I have had large unsecured debts for 7 years now. I was with the CCCS for three years until Feb 2007, when I took on the DMP myself due to studying abroad. My friend has very kindly been paying my living expenses, tuition fees and monthly payments to the creditors, loaning me a total of approx £15000. I have paid the creditors over £5000 the last twelve months, and my debts have actually increased from £80000 to £82000 due to interest charges they failed to actually tell me about. I had been paying interest free with the CCCS.
My good friend has offered me a £20k loan to make full and final settlement offers to my creditors. However, I'm also wondering if Bankruptcy may be the better option and make a new start with my life with the money he has offered (he is happy with either option). My debts have caused me major problems over the last few years with my health, relationships with friends and family and also at work.
Advice on which is the more viable option based on your experiences would be of great help.

poorandindenial

Hi Magpie

This is a really tough dilemma, I thought it might be when I saw you hadn't got any posts yet.

My initial thought is that it might be worth going back to CCCS (or going to another debt charity if you prefer) to talk through your options as BR may or mat not be an option for you depending on your circumstances. To get a more experienced perspective of it on here it is probably worth poping over to the sub-board of this forum that is entirely dedicated to Bankruptcy (it is the little seperate bit at the top of the page). People on there are in BR, thinking about BR or have been through it.

Good luck whichever route you try. I hope people on here that have done full and finals can help you with their experiences of doing that, although the BR board may still be the best place for weighing up the two options together.

nomoneynomoney

Hi Magpie

I have recently be trying to do full and final settlements with my creditors and I have roughly the same percentage to offer them as you (25%).
I used template letter off the national debtline web site. Now some of the creditors have accepted the 25% but others want the full amount. I don't know how they decide if they will accept or not but it is certainly worth asking.
I can't advise about bankruptcy.
Good luck
PS some of mine will settle at,
wescot 50%
arc25%
egg25%
all the others want 85-100%

tigerfeet2006

Hi Magpie and welcome.

I agree with poorandindenial I would ring CCCS and have a chat with them. If you come over to the Bankruptcy board it is the first thing we tell you to do, take professional advice about BR as the judge will ask you if you have done this and can refuse your BR if you haven't.

Pop over and chat with us on the Bankruptcy and living with it board. We don't bite and are very friendly.

mummytofour

Tough one... Are you still living out of eh uk?

magpie69

Yes, I'm still studying abroad. I have a further year to go with the option of further studies after the exams.