My situation is a bit complicated, so I will give you some background details, and also explain what I hope to do.

I have in total £30,000 of debts that are in just my name, or the account were taken out for my LTD company, but I signed as guarantor. So I know I am liable for those accounts, too. My business is still trading but bringing in as much money, however, I have struck a deal with someone to buy the company. This sounds like a good deal, but they are only offering £18,000 to buy the company. I am trying to strike settlement deals with the 4 accounts, and have 3 banks onboard to accept a 60% one-off payment to settle the accounts as paid in full. The issue is that the last lender does not want to settle the account, they want payment in full, and with only having £18,000 to work with, I cannot settle the other 3 accounts and pay the 4th account in full.

To add to this, my wife and I have a property we are buying together. We have only lived here a few years, and the equity in the property is minimal. But if I were to be made bankrupt, we would lose the house.

I am looking for some advice on how to get these settlements all in place.

Thanks in advance,




It sounds as though you have done the work and know what you are doing to get yourself out of debt, so good for you. And settling a debt for less than what is owed is a way to get out of debt.

A couple of quick questions:

How much do you owe to the account that will not accept a settlement?

How much equity do you have in the property?

I ask as these can help in providing some advice.

One way to get all your creditors on the same page so to speak for settlements, is a Full and Final IVA. As long as the majority of your creditors agree to the settlement, it is binding to all. If the one account that does not want to settle holds the lion’s share of your debt, this could be an issue with a Full and Final IVA.

In addition, depending on your equity in the property, and if you show you can still afford to make payments to the accounts, you may be required to pay the lump sum, and still make payments, even if a small monthly amount, for a period of time.

Your creditors will want to minimise their losses.

If the property is in both your names, and your wife is not on the debts, only your portion of any equity would be looked at.

Keep in mind, if you do opt for the Full and Final IVA, and even if you settle the accounts on your own, it will impact your credit. But the accounts will show a zero balance.

I hope this helps, and if you have any other questions, just ask.



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