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T O P I C R E V I E W
Thepup
Posted - 15 May 2009 : 20:00:11 Hi
I have debts with 3 creditors. The smaller debts I could probably manage the minimum monthly payments for.
However my 2 largest debts with the 3rd creditor are my big obstacle. I couldn't possibly get anywhere near the minimum payment whilst unemployed.
Do you think it would be possible to negotiate much lower monthly payments to them whilst making the minimum payments to the others?
If I can keep my biggest creditor satisfied until I get a new job I will have a chance.
Surely that would be of benefit to all parties rather than my going bankrupt???
Of course my creditors may not see things that way.
Also, is there any reason I can't try to sell some things to help fund payments? Desperate measures I know but maybe it could buy me some time.
1 L A T E S T R E P L I E S (Newest First)
gettingoutofdebt
Posted - 15 May 2009 : 20:22:02 There is no problem with selling things to try to pay your creditors and this would be seen as a positive step by the OR/Court if you end up declaring BR.
You would need to make sure that you pay ALL creditors otherwise there would be favouritism and this can be viewed negatively by the OR. Normally it is advisable to either offer each creditor a token amount (i.e. £1) or to pay them as a percentage of the total debt.
Creditors are normally open to token payments but normally want to see any I&E form every 3 months or will try to pressure you for more money all of the time.
Don't make the mistake of thinking that creditors are sensible. Before declaring BR I was considering an IVA and, on the sister board of this one, there are people who have offered good IVAs with 60%/70% only to be turned down. The person has then declared BR and the creditors have received 30% or so from an IPA. Creditors will normally sell the debt to a debt collection agency after 2/3 or more missed repayments and just write off the debt so it is not always in their best interest to keep receiving token repayments.
