DMP, F&F, BR, Court Orders - muddle - Help!

Marru · 28 August 2009 at 2:16PM

Hello,

I got myself into financial muddle that got worse after realitionship break up from my DD's dad. In February last year I contacted my creditors and made token payments until I got my housing benefit application approved and I was able to make an offer for DMP payments. For a year I made these payments until this spring I wasn't able to keep up with the payments anymore. I have now booked a court date (7th of October) to go bankrupt but unexpectedly I have got an offer from someone close to me to borrow me money for full and final settlements so that I don't have to go BR.

I sent the offers of 15% to all my creditors, one has come back and said they want 40%, one wants 50% (Lloyds&AIC), three has asked for financial statement which shows monthly deficit of £200.- and that I also have about £2.5k priority debts, one has't come back at all. The one creditor wanting 50% have sent final warning to take me to my local county court - I owe them about £5k from total £40k.

What will happen if I let it go to court? I don't really want them to bully me to pay 50% if better deal is possible and especially if my main creditor is not going to negotiate and I end up going to BR anyway.

If it goes to court will I be able to represent myself or is there just going to be bailiffs on my door one day telling me what court has ordered?

What are the normal percentages that people have been able to get as F&F?

Any help and advice would be greatly appreciated. Thank you!

Pippilongstocking · 28 August 2009 at 3:12PM

Hey Marru not much help I am afraid - the only deals on F&F's I have had worked out at about a 30% discount.

Hope someone else comes up with something more helpful for you.

Keep your chin up

misspoppy · 28 August 2009 at 3:54PM

Hi

slighty different angle from the question you are asking. have you agreed how you will repay this loan, are you sure you can afford it, what will happen if your circumstances change and you are unable to repay it. Its a really kind offer but something that requires lots of thought money and friendships rarely go smoothly, in fact some people have posted on here about trouble with loans to friends that have gone wrong.

Marru · 28 August 2009 at 4:06PM

Very good point and obviously something that I have given lots of thought. I and this person are plannig on moving together and even before that I am going to really tackle my budget to be able to keep paying this debt off but at least I wouldn't be getting constant bombing of letters and phonecalls if I can get all the financial institutes off my neck.

RAS · 28 August 2009 at 4:07PM

Marru wrote: »

If it goes to court will I be able to represent myself or is there just going to be bailiffs on my door one day telling me what court has ordered?

No one will come to your door re a CCJ who has any right to remove stuff.

You can represent yourself and the court will make a payment based on your income.

But think really hard before you take a loan from a friend or family.

Deep_In_Debt · 28 August 2009 at 4:24PM

15% is a very low offer and unlikely to be accepted. The amounts that your creditors have offered seem realistic. DCA's tend to do better deals but even then, probably nearer to 30%.