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Hi my IP has put forward a full and final settlment figure of £5k to my creditors and the creditors meeting is at beginning of September. The offer will give an overall payment of 14p in the £. Are offers this low normally accepted? My IP recommended the amount of £5k but don't want to get my hopes up.....Also they said to be available at the meeting times in case there is any modifications made to the full and final offer, what does this mean? We have negative equity in our property too and have recently seperated which is the reason for the offer as we are now running two households and have no disposable income

Hi softie and welcome to the forum

So long as the offer is reasonable, and the reasons for the offer have been clearly explained to your creditors, there is no reason why the offer should not be accepted.

It sounds a reasonable offer and better than bankruptcy for your creditors. Your IP seems confident and the modifications may only relate to the fees but even so you must agree to them.

Hi and welcome to the forum, I hope the above has helped reassure you. All the best with your offer. x

Thank you I do feel reassured and just worry. The IP suggested the £5k so I know it is reasonable it just seemed that 14p in the £ was low... The situation has been explained fully. Should it not be accepted and we have to take bankruptcy as our only option would we lose the house with us being in negative equity or would there be other options?

I believe that with negative equity your house may be safe but an interest would remain in the property for a period of 2 years 3 months...don't quote me on that one but it is either that or similar length of time.

Hopefully bankruptcy won't be an option and your Full and final will be accepted. x

Your house is safe with negative equity and 14p is not bad. We recently closed one down as full and final at 1.27p in the £ and in extreme cases there have been closures lower than that.

I am hopeful but just like to be prepared... how would the house be treated with the negative equity. Is it totally safe and not included in the bankruptcy or is dealt with differently? what happens if only one of us goes bankrupt?

The bricks and mortar belong to the mortgage company and you own the equity. In bankruptcy a third party can buy out your interest for the amount of equity which can be a token payment of £1 or even nothing at all. They can come back and revalue in two years three months to see if there is equity at this time so it could depend on property prices meantime.

I doubt it will be an issue anyway and best of luck.

Thank you, does this mean that you can remain in the property for two years and three months and then if there was say £1k equity in it then we could buy back the interest at £500 each and continue to pay the mortgage?

Exactly. No one wants to put you out of your home as it is expensive and often does not raise any money anyway.

aww good luck, let us know how you get on x