www.iva.co.uk

my wife is in a dmp with payplan ,she has inherited from her mum she now wants to settle her debts with an offer 20% less than debt do payplan have to do it or can she do it herself

If it is definitely a DMP, she can contact them individually directly if she wishes, to arrange paying them off, however as she has Payplan already looking after the running of the DMP, she could ask them directly to do so if she would prefer.
As for whether they'd accept 20% less, I wouldn't know as most of the time a DMP will continue adding interest and sometimes fees on accounts that are being paid at a reduced rate, so some negotiating may be needed!

If it is an IVA she will have to inform Payplan of the inheritance and they can look at how to offer a full and final on the accounts.

As creditors often sell on debts for small percentages they might well look favourably on a final offer, always worth an ask.

I'm not sure if as its a DMP, not an IVA whether you need to declare the windfall...

If not then perhaps the negotiating will be easier if she can say the funds are coming from third parties rather than specifically a windfall...

I don't think you do have to if it's a DMP - I also don't think that you have to declare any bonuses. The only thing I had to declare with my original DMP was pay rises as it obviously increased my DI.

In which case she can reasonably and honestly say she is getting funds from a third party and negotiate a settlement.

It may well be easiest to let Payplan handle it, they will have all the details, contacts etc.

One strategy is to find out what they will settle for first, as that may be cheaper than offering an amount to each. Effectively, you tell Payplan, or the creditors if you decide to do it yourself, that you have the possiblilty of some funds, but you are not sure of exact amount yet, so can they make you an offer, rather than the other way round.

Regards.

Good advice from Size 5.