Full and final settlement help thread

sourcrates

imazeu wrote: »

Hi Carbootcrazy, Yes I did stay with them, effectively chose the first one when life was a blur and stuck with them. For number of years I thought they were doing a good job.

My circumstances have changed for the better, slightly and that is why i have stuck with them thinking I would go through the rigmarole when swapping, hope that makes sense. Even now I would rather the situation was managed as i would like to concentrate on work.

This brings me to the point of posting here, In a month I will have about 20k from the sale of the house and have about 33k in debts still and was hoping whether it is realistic whether all will be cleared as either F+F or partial and if they do get cleared how will that stand me in light of a joint mortgage application in my 6th and final year of the DMP. Will all the debt drop off my credit file next year regardless of whether they are F+F or partially paid?

Lots of questions i know but I would like the best outcome. I have never shied away and accepted responsibility for them but need to move on with life and do the normal things again, like a mortgage with my new partner etc. It's been a haul, a weight in fairness but feel I am finally getting there.

Appreciate your help with this and the questions in my previous post.

John

Hi,

Whatever you do, don't let Vincent bonds negotiate your full and final offers.
You have already paid this firm unnessessary fees, for what is essentially a free service elsewhere, I'm sorry you have stuck with them, DMP's are so easy to manage yourself, don't let them take any more of your money.

Simply write to your creditors making them the settlement offers, use the National debtline template letters, here :

https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspx

It may take a bit of letter tennis, and a bit of effort on your part, but you should be Able to achieve the discount you are looking for.

Defaults stay on your file for 6 years, from the date there registered, then they vanish, paid or not, dosent matter.

Incidentally, I think you should push for a full refund of fees charged by Vincent bonds, if you felt pressured at any stage, or they didn't explain that there so called service, can be found for free with stepchange or payplan, all debt management companies are leeches who benefit from your bad luck, you should stay well clear of them.

fatbelly

Just looked at the Vincent Bond website. Info on bankruptcy is out of date and (surprise surprise) there is no mention of Debt Relief Orders.

I wouldn't touch them with a bargepole

Penelope_Penguin

imazeu wrote: »

In a month I will have about 20k from the sale of the house and have about 33k in debts still and was hoping whether it is realistic whether all will be cleared as either F+F or partial and if they do get cleared how will that stand me in light of a joint mortgage application in my 6th and final year of the DMP.

John

Hi, John.

If I were you, I'd get advice from one of the no-fee debt charities - such as Citizens Advice. They could arrange for you to make pro-rata payments, using the £20k, to each of your creditors. It's then possible that you may qualify doe a DRO, which will wipe out the other £13k of debt. If you don't qualify, the adviser can look at your other options.

HTH

National_Debtline

Penelope_Penguin wrote: »

Hi, John.

If I were you, I'd get advice from one of the no-fee debt charities - such as Citizens Advice. They could arrange for you to make pro-rata payments, using the £20k, to each of your creditors. It's then possible that you may qualify doe a DRO, which will wipe out the other £13k of debt. If you don't qualify, the adviser can look at your other options.

HTH

The very idea of making full & final lump sum offers from the house sale proceeds is that John can then be debt-free without having to declare himself insolvent as this would seriously impair his credit report for six years.


If John ended up doing a DRO he would have no realistic prospects of obtaining a joint mortgage in the foreseeable future.


John/imazeu - debts will drop off your credit report six years after they are defaulted.


Dennis
@natdebtline

Baggiestan

Hi
Just looking for a bit of advice from someone who understands the process better than me.
We are currently on a DMP with SC and have been for approx 5 years with no issues,never missed a payment and have been able to increase payments slightly each year.
In the next couple of months i will have the opportunity to take a lump some out of my pension which i am looking at to offer a F&F to my creditors,should i go through SC or contact the creditors directly and would this cause any issues as the creditors would then know i have got some extra money.

Cap 1 - £4000
Experto Credite - £3500 (originally Post office then sold to BCW then Experto Credite)
Moorgate - £3500 (originally Virgin then Moorgate)
Moorcroft - £3200 (originally Halifax)
Santander - £750

Total - £14950
The money from Pension would be approx 50-60% of debt.is it worth trying this route and does anyone have experience of dealing with any of above companies.
Hope this makes sense.
Thank you.

Butterfly46

Baggiestan wrote: »

Hi
Just looking for a bit of advice from someone who understands the process better than me.
We are currently on a DMP with SC and have been for approx 5 years with no issues,never missed a payment and have been able to increase payments slightly each year.
In the next couple of months i will have the opportunity to take a lump some out of my pension which i am looking at to offer a F&F to my creditors,should i go through SC or contact the creditors directly and would this cause any issues as the creditors would then know i have got some extra money.

Cap 1 - £4000
Experto Credite - £3500 (originally Post office then sold to BCW then Experto Credite)
Moorgate - £3500 (originally Virgin then Moorgate)
Moorcroft - £3200 (originally Halifax)
Santander - £750

Total - £14950
The money from Pension would be approx 50-60% of debt.is it worth trying this route and does anyone have experience of dealing with any of above companies.
Hope this makes sense.
Thank you.

Hi Bggiestan
Having been through the process of contacting my creditors myself with F&F, I can definitely recommend you ask SC to negotiate for you. ALL of my creditors turned my offers down, but after being given a lump sum from a relative which amounted to approx. 41% of the debts, all but two creditors accepted! The two who were unreceptive were, Moorgate, SC advised me Moorgate are one of the worst for negotiations (which I see you have debt with, they wanted 100% of the debt :mad:) and Link, who initially wanted 90% but reduced their acceptance to 80%!!) SC cleared 7 of my 9 creditors and now I am paying Moorgate & Link token payments of £1 per month until my situation improves. Hope this helps you! Talk to SC they are extremely helpful & are better equipped to talk to & negotiate with creditors than doing it alone. I personally feel like a weight has been lifted from my shoulders and & can stop worrying all the time :T Good luck with your offers.

Baggiestan

Hi Butterfly46
Thanks for your reply,when time comes i will probably do it through SC and see what happens,just thinking of ways to put these debts to bed and move on.
Regards

JSco

Hi, quick question. I'm about to try and negotiate a F&F settlement figure with Wescot which is from a RBS credit card I defaulted on in 2006 and have been making small monthly payments to ever since. It doesn't show up anywhere on my credit file (checked the main 3) presumably as the default is over 6 years old and Wescot don't report to Credit agencies. All of their letters to me suggesting that I may be able to negotiate a lower settlement figure state that my credit file will be updated to reflect that a partial payment has been accepted to settle the debt but given there's nothing there just now will this actually happen? It's all obviously standard wording as there's lots of stuff about how having the debt will continue to affect my ability to get credit although I have no issues getting credit these days. Any chance it will pop back up on my credit file if they agree the settlement?

Thanks

fatbelly

JSco wrote: »

Hi, quick question. I'm about to try and negotiate a F&F settlement figure with Wescot which is from a RBS credit card I defaulted on in 2006 and have been making small monthly payments to ever since. It doesn't show up anywhere on my credit file (checked the main 3) presumably as the default is over 6 years old and Wescot don't report to Credit agencies. All of their letters to me suggesting that I may be able to negotiate a lower settlement figure state that my credit file will be updated to reflect that a partial payment has been accepted to settle the debt but given there's nothing there just now will this actually happen? It's all obviously standard wording as there's lots of stuff about how having the debt will continue to affect my ability to get credit although I have no issues getting credit these days. Any chance it will pop back up on my credit file if they agree the settlement?

Thanks

Correct - just standard wording. It won't reappear as it was defaulted more than 6 years ago

JSco

Great thanks, I'll report back on whether I have any success!