F&F Question

[unsure]

I need to pay back some of my debts and after taking advice from several companies the only thing that they agree on is that i have no disposable income. I am able to obtain cash towards my part of equity in house from family but i am told that will represent a low return for creditors in an iva through a company.Are creditors likely to accept a f & f settlement direct from me and is this legal.

Thanks

[facingittogether]

hi unsure - i am almost sure that offering a full and final to your creditors would be legal. i think the best thing to do would be to post more details eg debts and offer you may be able to make to creditors so that an expert can advise you

wishing you all the best

barb

[MelanieGiles]

Can you tell us how much you would be able to raise and how much you actually owe to your creditors?

[unsure]

Hi Melanie
You gave me advice last week which i do apprieciate.
Details are-

Unsecured debt £61k (mine)
Joint equity £38k (possibly falling)
Disposable £0 (following cccs criteria)
When i posted last week i gave a figure of £15k from family and was trying to raise more. You advised that amount was quite low but may be possible. However this week owing to credit crunch this figure from family offer is reduced to £12k, which in my own mind is far too low to do anything with. All i want to do is pay off debts as much as i can.I know there is no quick fix to the situation and i am prepared for the long haul. However it seems that i cannot even pass the starting post as i am told i can not even get into a DMP.

[MelanieGiles]

You really need to be offering something equivalent to your share of the equity, so £12k against £19k is a little low. Would you consider selling the property and realising the money that way, as this is likely to happen if you are forced to consider bankruptcy proceedings. Do you currently have a mortgage - and if so is it on interest only or repayment basis?

[unsure]

Hi Melanie,

Mortgage is interest only.
If we sold now we would probibly have to drop the price for a quick sale and then take out agents and legal fees. Property rental in our area means that we will have to pay some £200 per month more than we do on our current mortgage repayment.Is it pssible to remortgage to access the extra amount.It is possible that i may not be able to stay in current employment in bankruptcy.

[MelanieGiles]

You might be able to get a mortgage to release the equity, and should certainly explore this - but I am not sure how you will pay an increased mortgage if you have no disposable income.

[unsure]

Thankyou Melanie
I will explore remortgage option to see if it is viable. I was in talks with Tony before his bereavement,but was unable to contact him after he left me a message to contact him. As i do not want to trouble him at this time,i will try to find another source or can you recommend another company.

[MelanieGiles]

Yes - Andrew Graveson of Brightoak, who also posts as an expert on the forum.