Full & Final Settlement Figures

[Cindylou41]

Hi there, I would appreciate some advice please. I have been made redundant recently and have been making the minimum repayments on my debts (£5 p/m) to each of my creditors under a DMP. I have since received £7k from a family breavement and so instead of putting it away, I have written to all my creditors offering 43% of the debt in repayment (I owe £16k between them). Capital One have written back to say no, they won't accept it. I am a bit gutted and I don't know what to do now. Do I ask what they are prepared to accept? or offer more? or just accept it and keep paying the £5 until I get another job?

Many thanks.

[New Judge]

I suppose you should ask yourself whether, if somebody owed you £1,000, you would be happy to accept £430 in full and final settlement.

If I was in your position I would simply continue to pay at the rate agreed.

[Buenchico]

This isn't directly relevant to your questions but it might still help:
http://www.stepchange.org/Debtinformationandadvice/Debtsolutions/Settlementoffers.aspx

[themas]

If you have £7K available & debts of £16K and have offered 43% then I assume you've no more money to use to increase your offer. I would not go back to them - at present just go on with the £5 p mth - but you may find they go to Court for a CCJ if you've told them the money for the full and final offer is yours, rather than (say) help from family.

There are a number of ways to play this, depending on your circumstances and what the other creditors reaction to your offer is.

In some situations you might qualify for a Debt Relief Order I can't set out all the criteria here & they are changing in October, but you would have to have made pro-rata payments to your creditors which reduce your capital below £1000. Also you must not own a property (even with a mortgage) or have other assets (such as a car) worth more than £1000. Look the subject up on the internet & contact your local CAB for more detailed advice if you think it might be a means of getting debt free.