Can a family member or friend introduce monies to pay off the creditors on my behalf ?
A great many Voluntary Arrangements are based on what is known as third party contributions. This is basically where a friend or family member will offer a sum of money in full and final settlement of all of your creditors. Typically this could be anywhere from between 10% to 50% of the amount owed. This is a very effective way of dealing with debt over a relatively short period. IVA’s based on 3rd party contributions typically would last no longer than 6 months.
