I have around £45 000 worth of debts. We have no equity on our house due to our mortgage, a secured loan and two charging orders. My husband went bankrupt because of his business so is currently looking for work. I have two endowments in my name which if I surrender will currently raise £17 000. I worked out this is around 35% of my debt. Do you think creditors will accept 35% of the debt I owe them as a final settlement or should I just go bankrupt like my husband? Our financial situation at the moment is such that if I do go bankrupt the creditors won't receive anything like 35% so I wondered if I wrote explaining the situation they might go for it? Would be rerally grateful for any opinions
You should also emphasise that if the offer isn't accepted then your only option will be to declare BR.
I am not sure how much a 'good' F+F is but even though I pay an IPA it will only work out to about 30% of my actual debt and that is without the OR/MoonBeever taking their cut so a 35% F+F is definitely worth a try.
Edited by - gettingoutofdebt on 13 September 2009 15:07:35
It is always worth looking at a final settlement offer with your creditors.
Firstly it demonstrates that you were serious about clearing the debts. Secondly it is likely to be substantially greater than if you declared br Finally if you eventually do go Br it shows that you have done the right thing.
The big issue is which creditors you have, how much you owe them and how long you have missed payments.
Currently our negotiations team are achieving settlements of around 30% - 40% depending upon the individual circumstances.
Perhaps you should speak to an expert ot review your current creditors and see what they think
Is it worth trying a final settlement?
Posted - 13 September 2009 : 12:22:02
