Paying out early

[lizzbe78]

I've been in an IVA for a year now and have been absent from work for the past six months suffering with depression and various other things. I'm now in a position where I have to leave my job through 'mutual agreement' or pretty much be asked to leave. They are paying me out but I'm trying to work out, as I've been told you can make an offer to pay out early, how much I'd have to offer in order for creditors to agree? I reckon I owe roughly 11k, having paid off 4k over the past year, on the outstanding debt.

Is there any advice you can give me regarding this as without a job I see the only option as bankruptcy, though after everything that has happened recently I'm beginning to realise that worse things happen at sea. I have no assets, don't own a home, don't even have a tv!! I have a computer and a car that cost me a hundred pounds two years ago, so is probably worth 50p now!!

[Viki.W]

Hey lizzbe78, welcome to the forum, I'm sure there is a solution to your debt problem, please wait for an expert to answer. You're in the right place for advice. viki X

[Beans on Toast]

Hi Lizzbe, I can't answer your questions but I can put it back up the board, hopefully one of the experts will get back to you shortly.

[MelanieGiles]

Given your current circumstances, it would probably be better for you to declare yourself bankrupt and make a fresh start free of debt, but it you did want to settle where would the money come from?

[lizzbe78]

I've been given a 10k payout from the company. It was either take that or walk away with nothing. So I'm not entirely sure what to do at present.

[MelanieGiles]

Then bankruptcy is not a good idea for you as that money will be taken for the benefit of your creditors.

Why not try an offer of £5,000 to close your IVA leaving you with the balance of the money to fund your living expenses until you find another job.

[lizzbe78]

Is that an amount that would have the potential to be accepted?

[MelanieGiles]

I think so given your circumstances, but see what your own IP has to say.

[lizzbe78]

Well, they've put forward a proposal and the meeting's on the 21st, so please God, please God, they will accept. I just wont have any finger nails left until that point. Thank you for your advice and I really hope this works.

[Moneystinks]

Fingers crossed for you - good luck!