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Can You Get Creditors To Meet You Half Way?
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Posts: 37 Forumite
Unfortunately I have had a business collapse over the last couple of months and left me with £27,000 worth of debt.
Two of the debts are hire lease agreements that I have given a personal guarantee to repay. One of the leases has an amount repayable of £2,000 with the other at £7,000.
I have explained the situation to both creditors that I am no longer able to honour the guarantee. I have however offer both creditors £1,000 each. The creditor with the £7,000 is still considering the offer. The other creditor rejected the £1,000 even though the original amount they gave to the business was £4,000 and the business had repaid £3,500. They would have therefore still made money on the lease. I then offered to pay them £80 a month for the next 18 months giving them £1,440.While they were happy with £80 they still rejected this as not enough.
Two of the debts are hire lease agreements that I have given a personal guarantee to repay. One of the leases has an amount repayable of £2,000 with the other at £7,000.
I have explained the situation to both creditors that I am no longer able to honour the guarantee. I have however offer both creditors £1,000 each. The creditor with the £7,000 is still considering the offer. The other creditor rejected the £1,000 even though the original amount they gave to the business was £4,000 and the business had repaid £3,500. They would have therefore still made money on the lease. I then offered to pay them £80 a month for the next 18 months giving them £1,440.While they were happy with £80 they still rejected this as not enough.
Total Debts Jan 09 - £28,000 Jan 10 - £11,500
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Comments
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Hi there
Welcome to the site, im a newbie on here so not qualified to give you advice, but what I will advise you to do is fill out SOA which you can find at top of page so it can be assessed and advice given from there.
Good luckBarclays OD -£805.93/limit £800 A & L OD -£350.00/limit £250HFC (laptop) £549.00, Barclays Loan £3033.00, O2 £331 (227.70 left)(defaulted):eek::eek::eek:0 -
SOA
Hire Lease Agreement £7,000
Hire Lease Agreement £2,000
Business Overdraft £5,000
Personal Overdraft 1 £1,200
Personal Overdraft 2 £5,000
Personal Loan £5,000
Phone Contract £2,000
All of the above are business debts I am liable for all except the phone contract and the business overdraft.
I have a personal loan of £500 which is my personal debt.Total Debts Jan 09 - £28,000 Jan 10 - £11,5000 -
On the £2,000 hire lease agreement I have started to make progress. By speaking to someone in their credit control I asked them for their email address. I am now able to make them offers to settle the agreement and get a faster response than letter writting.
Due to interest the balance on the agreement is £2,537.13. I offered them £1,000 as a full and final settlement. This was rejected out right (to be expected) but they did offer a settlement of £2,168.10 + Vat. They must have thought I am stupid as the total would be £2,493.32.
I then made another offer £1,400 and finally got movement. They came back with a counter offer of £1,800 + vat (total of £2,070)
Still waiting for the other hire agreement first offer of £1,000.Total Debts Jan 09 - £28,000 Jan 10 - £11,5000 -
Did any of the loans or agreements have payment protection insurance?
You may be able to claim these back if they were missold.After falling off the gambling wagon (twice): £33,600 (24,000+ 9,600) - Original CC Debt: £7,885.91
Dad Gift 6k ¦ Savings & Inv Tst: £2,500
Loan 10k: £0 ¦ Dad 5.5k: £2,270 ¦ LTSB: £0 ¦ RBS: £0 ¦ Virgin £0 ¦ Egg £0
Total Owed: £2,270 (+6k) 11/08/20110 -
Unfortunately no payment protection on anythingTotal Debts Jan 09 - £28,000 Jan 10 - £11,5000
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Have you tried getting advice from Business Debtline?0
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I phoned business debt line and they could offer no advice due to the personal guarantees on the hire agreements.Total Debts Jan 09 - £28,000 Jan 10 - £11,5000
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The personal overdraft that I have at £1,200 I have spoken to the bank and reached an agreement. The account will be closed and on hold until the outcome of the bank charges test case. Depending on the outcome of the test case will determine how much will need to be repaid. Until then I do not have to make any payments to them and they will not charge and fees or interest.
This means in the short term I can focus on the other debts.:DTotal Debts Jan 09 - £28,000 Jan 10 - £11,5000 -
The big lease agreement (£7,000) are trying the nasty approach by threatening court action and are refusing to negotiate with me on a settlement figure.:mad:
After their refusal to cancel the hire agreement even with over 50% paid (apparently they doesn’t have to as it is a hire lease agreement and not a hire purchase) I have asked a solicitor to review the contract (for free) to see if I can challenge it. I have also got trading standards reviewing the contract to see if I am within my rights to cancel the agreement.
I will not give up without a fight.Total Debts Jan 09 - £28,000 Jan 10 - £11,5000 -
Fight for your rights but don't let it consume you. Only think about it when you have a letter to deal with, the rest of the time enjoy your life.Barclaycard 3800
Nothing to do but hibernate till spring
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