Full and final settlement help thread
Comments
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Hi,
I'm clearly not new to debt, but I am new to learning how to manage it! :j
I've recently started setting up a temporary arrangement plan with my creditors. I currently owe about 35K and have no income atm so I've arranged to pay £1 per month to them for the next 6 months. They've all been quite decent so far.
Some have mentioned that they would arrange this and that it would come with a default. Some haven't.
What I'm trying to work out is where this whole F&F thing comes into it? I'm not on a DMP at the moment, but it's heading in that direction from what I can gather. Do I need to sort that out first and then look at F&F further down the line?
Thanks!Lightbulb Moment: 18/01/2015 :jCurrent Debt: 31,869.62 :eek:DMP Start Date: 01/09/2015DFD: TBC but sooner rather than later, I hope! :beer:0 -
tequilabird wrote: »Hi,
I'm clearly not new to debt, but I am new to learning how to manage it! :j
I've recently started setting up a temporary arrangement plan with my creditors. I currently owe about 35K and have no income atm so I've arranged to pay £1 per month to them for the next 6 months. They've all been quite decent so far.
Some have mentioned that they would arrange this and that it would come with a default. Some haven't.
What I'm trying to work out is where this whole F&F thing comes into it? I'm not on a DMP at the moment, but it's heading in that direction from what I can gather. Do I need to sort that out first and then look at F&F further down the line?
Thanks!
What strategy you adopt depends on how much surplus income you have, what access you have to lump sums, whether you are a homeowner or have significant assets, what career you are in...
With 35k debt the first question I would ask is why should/could I not declare bankruptcy?0 -
I could, but I have a property that I don't want to lose. I want to deal with my debt rather than declaring bankruptcy so I'm trying to get my head around things. SC have suggested a DMP as a solution and have avoided discussions relating to bankruptcy.Lightbulb Moment: 18/01/2015 :jCurrent Debt: 31,869.62 :eek:DMP Start Date: 01/09/2015DFD: TBC but sooner rather than later, I hope! :beer:0
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tequilabird wrote: »I could, but I have a property that I don't want to lose. I want to deal with my debt rather than declaring bankruptcy so I'm trying to get my head around things. SC have suggested a DMP as a solution and have avoided discussions relating to bankruptcy.
IVA would probably be more suited to your level of debt, depends how long you want to be tied up with it, and how much you can afford to throw at the debts every month.
As rule of thumb, IVA 6. Years max, DMP. Could last 20 years !!!!!I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Yup about the IVA thing but if, like me, your job would be lost if you got an IVA or went Bankrupt, then you'll end up staying on a DMP for 20 years rather than lose your job!Original Total: £34200.78 / Current Total: £24017.00 (July 2017) -29.88%!
DMP started March 2014. DFD: November 20250 -
Meatloaf1981 wrote: »Yup about the IVA thing but if, like me, your job would be lost if you got an IVA or went Bankrupt, then you'll end up staying on a DMP for 20 years rather than lose your job!
That has to be a consideration obviously.
Mostly only effects people working in the financial sector, but why you should be put at risk of losing your job for attempting to manage your financial situation, is beyond me.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
sourcrates wrote: »
As rule of thumb, IVA 6. Years max, DMP. Could last 20 years !!!!!
35k at £1 per month per creditor.
Could be 2000 years!0 -
thewhiteavenger wrote: »35k at £1 per month per creditor.
Could be 2000 years!
What makes you think I will only be paying £1 per month going forward after 6 months?
I came on here for advice, not to be made to feel worse about my situation. In fact, I came on this thread just to try and make sense of this whole thing about F&F settlements to see if it was something I could think about in the future.
From what I can see on the forum, although 35K is a lot of debt, it's nowhere near the level of some posters and they are still on a DMP and are not getting grief for asking sensible questions!Lightbulb Moment: 18/01/2015 :jCurrent Debt: 31,869.62 :eek:DMP Start Date: 01/09/2015DFD: TBC but sooner rather than later, I hope! :beer:0 -
you should settle with the intention of removing the default completely from the credit file, not this word settled....cause it stays there 6 years....no thanks...it worked for me in the past unless it has stopped and creditors getting smart....but normally they want their money, they agree to nearly anything...lol0
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tequilabird wrote: »I could, but I have a property that I don't want to lose. I want to deal with my debt rather than declaring bankruptcy so I'm trying to get my head around things. SC have suggested a DMP as a solution and have avoided discussions relating to bankruptcy.
One thing to make sure is that all the accounts are properly defaulted and marked as such on your credit file. What you don't want are AP / AR / 6 markers which go on forever as once it's defaulted, it vanishes from your file after 6 years, paid or not. Your file is going to be trashed anyway. If they are not defaulting you, it might be wise to stop paying anything for a few months and plead absolute poverty.
It may be that after 6 years of token payments and the account gone from your file, they will be open to offers and you may be in a position to offer them something in settlement. That's my plan anyway and I'm 18 months from the 6 being up now.
Good luck.0
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