In a mess with our DMP
Comments
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I'm always reluctant to advise on Scottish issues as the laws are so different to England/Wales but it seems to me that the case for a dmp was marginal anyway, given that it was going to take 8 years.
So I would be taking advice from National Debtline about which is the best form of insolvency.
And I would NOT be writing to creditors. It will take them a couple of months to realise the dmp has failed - use that time to do your research and save for the fees.0 -
Hi folks,
I've sat on this for a few days and I have decided to send the letters above and also another one to Shoesmiths who are dealing with the mortgage shortfall. I'm going to explain to them that I am now taking a more pragmatic view of my situation and the options are (a) an offer of £5k in full and final settlement of the £46k debt, paid in monthly installments over 4 years. (b) me going for a Protected Trust Deed which would see them get less money than option a. (c) me going for bankruptcy if the trust deed is not made protected which would also see them receive less than option a.
Option a will mean I pay out roughly the same as if I was on a trust deed or bankruptcy as it looks like I would need to pay 3-4 years under either of these options.
So essentially I'm going to turn the tables and see what they come up with. Ultimately I have nothing to lose but I feel it is worth a shot? The worst they will do is refuse option (a) which then puts me down the path I'm likely going to go down anyway. I'm hoping that they too will take a pragmatic view and decide that £5k is better than getting significantly less if I went down the trust deed/bankruptcy route.
Any thoughts?0 -
Letters to creditors have been sent today.
I have drafted the following letter to Shoesmiths in relation to the £46k mortgage shortfall debt - keen to hear thoughts. I'm presuming they will tell me to get lost, but at least I can say I gave them an offer of something.
Dear Sir/Madam,
Re :
Account :
Name :
Amount Outstanding : £
I am writing to you regarding the above account.
Given the size of the debt on this account, I have decided to adopt a more pragmatic approach to the situation.
I would like to make an offer in full and final settlement of this account. The offer is £5,000 payable in 48 monthly installments of £104.17.
The other alternatives open to me to resolve this situation are :
(a) Protected Trust Deed. If the offer noted above is rejected then I will have no option but to go down this route. The amount you will receive will likely be significantly less than the figure offered above.
(b) Sequestration. If the Trust Deed applied for doesn’t achieve Protected status, then I will apply for Sequestration/Bankruptcy. This will also mean the amount you will receive will likely be significantly less than the figure offered above.
I have no assets, I own no property and I have no savings. My situation will not change in the near future and I wish to resolve this situation as soon as possible. As I’m sure you will appreciate, if I apply for a Protected Trust Deed or Sequestration, I am only bound to make payments for a maximum of 4 years – after which point any remaining debt is written off and my liability ceases.
I trust you will adopt a similarly pragmatic approach to this situation and accept the offer I am making as I feel it is in our mutual interest to do so. Please note that if the offer noted above is rejected, or no response is received by 31st March 2017, then I will start making preparations for (a) or (b) as noted above.
I look forward to your reply.0 -
ChefBungle wrote: »Letters to creditors have been sent today.
I have drafted the following letter to Shoesmiths in relation to the £46k mortgage shortfall debt - keen to hear thoughts. I'm presuming they will tell me to get lost, but at least I can say I gave them an offer of something.
It’s a long shot but there’s no harm in making the offer as you say. It’s still in their interests to accept though, if insolvency is your alternative.
James
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0
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