Hi Marty72.

Hopefully some other members can share their experiences with you.

My colleagues and I have a fair bit of experience helping clients with this.

We could offer some guidance here if you could offer some background like:

1 - how much is owed.
2 - the size of lump sum you can make available.
3 - whether you're in arrears (and how much if so).
4 - any special factors that might be relevant (health, age etc).

Thanks TDA ( why don't you get a name?)

I am about to start my DMP with cccs on 36k of debt. I will be paying my 7 creditors £5 a month for the foreseeable. I will be signing on for first time in 10 years as thigs have changed financially. I am self employed.
I am thinking of a TD or bankruptcy but I have the opportunity of getting cash from third party to make an offer to the creditors.
But I don't want to go in too early with offer, I heard it was best to give it 6 months of payments or till debt is passed to debt collection agency.
Barclaycard, Clydesdale bank, MBNA, Amex and RBs are my creditors.
Any help would be nice.
there is no chance of me going on a DAS for 15 years. No chance! I have payed enough interest on half my cards amounting to more than the debt itsself
That makes me feel like an idiot. However. Must get forward looking.

What sort of size of lump sum do you think can be made available by the third party Marty72?

Hi Marty72, it does really depend on what size of lump sum you have to offer, as most work on requiring a certain percentage for full and final settlements. Can I ask if you have any assets, such as a house or car? There may be another option rather than borrowing money from a third party.

I'm thinking maybe 13-15k as sum between them.
Maybe a little more.
Got a flat worth 5k less than I paid for it and I have
An old car worth maybe 3.5k

quote:

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Originally posted by Lucalondon

I'm thinking maybe 13-15k as sum between them.
Maybe a little more.
Got a flat worth 5k less than I paid for it and I have
An old car worth maybe 3.5k

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Hi Marty72

You appear to have answered your question using your other sign in name (Lucalondon) and your English has certainly improved no end in the last 10 days!

Mark

Hi, that is a lot of money to get from a third party. You say you are signing on for the foreseeable future , in which case bankruptcy may be a much cheaper option. If there is no equity in your property, you can get a third party to pay £500 to keep your home, and depending on the value of your car, a nominal sum to keep that also. If you have no disposable income, therefore no payments required, you could be debt free in a year, for a lot less than £13k.

Didn't know it was a crime to forget signing on details for the forum and start another name.Apologies.

Hi Marty72,

I think it just seemed a bit odd given the very different writing styles used previously. No worries though.

I think you may struggle to fully settle all of your debts (in an informal negotiated way) with that sum of money, though you'll only find out by trying.

Some debt adviser training suggests 50% settlements as a possible benchmark here. However, experience suggests that not all creditors will always be prepared to accept any kind of settlement (other than full settlement of course). I've seen debts settled at a little over 30%, but that was the exception rather than the rule.

You seem to have the potential to offer something around 35-40% based on the figures provided. By all means give it a go if that's how you want to proceed, but my gut instinct is that you'll struggle to bring all of your creditors into an informally negotiated agreement at this level.

As Shona has highlighted, even if you were successful you'd still be left in debt I think?

Yes, my concern is you are just swapping the debt, and will then be in debt to the third party, instead of getting out of debt.

Hello

My health and wellbeing was so affected by entering into a TD that approximately half way into the TD, my employer offered to pay the balance of the TD and allow me to pay the sum back to them. I put this to the Trustee who advised that it was not possible to do this. Any money I generated would be added to the repayment fund and I would still continue to pay the Trust Deed.

I did understand the principle of owing someone else rather than the Trust Deed, however, it was an arrangement I thought might lighten the emotional load at the time. It was not to be.

Everything is rosy at the moment. All my creditors are being so nice on the phone. I make my first £5 payment to each on my newly started DMP.
Wonder how long that will last before calls and letters.
I know it's not the correct place. But a Debt arrangement scheme......how do they work out what is an acceptable level to pay back monthly? And is ten years the maximum length you can be on it? If so that's Nae good to me.
Have a wee bit of guilt about the debt....wondered if I could do a couple of years @ £100 a month or so then bankrupt?
Och I don't know.

You can offer whatever you like to creditors through a Debt Arrangement Scheme, it's up to you. However, I think it is unlikely to be accepted if the term works out as more than 10 years.

Also, is paying your debts over such a long time really a desirable option? It sounds like you are making token payments at the moment - there is only really any point in doing this if you are holding out for an expected change in circumstances. Otherwise you are just delaying the inevitable.

I understand that you wish to pay as much of the debt back as you can, but do remember that you may well have to make payments during your sequestration too.