Full and final settlement help thread

fatbelly

massivedebts wrote: »

Hi
Apologies if this has already been covered in the thread.
We are on a DMP with SC and have been since Apr 2009. My mum and dad have offered us a sum of money to negotiate full and finals with our 9 creditors to try and clear the debts. I have found the letter template from national debt line and I have also read that the payment to ether creditor will be better being made from a third party (Ie mum and dad) however my dad reckons that the creditors can still come after us at a later date for any monies that were not paid off - Ie the agreed discount % ... Is that correct?
Many thanks

It's not a formal legal process but as long as you keep the 'deal' letter from the creditor for 6 years, and the letter is unambiguous, you would be OK.

If the payment is made by a third party it strengthens your argument should you ever need to have one!

Drud88

Hello all!!

I've been reading through the thread. I can't see anywhere about anyone asking for the accounts to be marked settled/satisfied instead of partial?

Is this possible? I'm about to start this process myself.

Thanks
Dan

fatbelly

Drud88 wrote: »

Hello all!!

I've been reading through the thread. I can't see anywhere about anyone asking for the accounts to be marked settled/satisfied instead of partial?

Is this possible? I'm about to start this process myself.

Thanks
Dan

You can ask but the credit report is supposed to be an accurate record, and the ICO have said that a partially settled mark is the correct mark.

However I have known creditors (a few years ago) to offer 2 deals: one with a partially settled mark and a higher figure for a settled mark. So give it a try if you feel that a settled mark is worth paying extra for.

Drud88

fatbelly wrote: »

You can ask but the credit report is supposed to be an accurate record, and the ICO have said that a partially settled mark is the correct mark.

However I have known creditors (a few years ago) to offer 2 deals: one with a partially settled mark and a higher figure for a settled mark. So give it a try if you feel that a settled mark is worth paying extra for.

Thanks for the quick response. Do lenders look badly upon partial settlements?

Also, sorry again another question, will they drop off my credit file after 6 years from the default date or the settlement date?

Thanks again.

fatbelly

Drud88 wrote: »

Thanks for the quick response. Do lenders look badly upon partial settlements?

Also, sorry again another question, will they drop off my credit file after 6 years from the default date or the settlement date?

Thanks again.

Not as good as 'settled' but better than not settled at all

They drop off your credit file after 6 years from the default date or the settlement date, whichever happens first.

Drud88

fatbelly wrote: »

Not as good as 'settled' but better than not settled at all

They drop off your credit file after 6 years from the default date or the settlement date, whichever happens first.

Me again, I have around £19,500 in outstanding debt and have inherited £7,000, if I offer around 30-35% on all the debts it would be realistic to clear with my inheritance. Do you think this would be accepted? All debts are 3 years old at least, defaulted with no payments made in that time.

Do I stand a chance?

fatbelly

Drud88 wrote: »

Me again, I have around £19,500 in outstanding debt and have inherited £7,000, if I offer around 30-35% on all the debts it would be realistic to clear with my inheritance. Do you think this would be accepted? All debts are 3 years old at least, defaulted with no payments made in that time.

Do I stand a chance?

Yes, that's do-able

Maybe start with a cca request if they're consumer credit act debts.

Then make an initial offer of 25%

This poster had some success at that level, though expect it to be hard work and take some time

moneyangel22

I have had a self-managed DMP in place for around 4 years now with 10 creditors. My Husband started a DMP around 3 years ago. He works but I have had to stop working due to ill health and disability for the last 6 years which was the reason for starting the DMP. We have around £50k of debt and are paying token payments at the moment because all of his excess salary goes on food and clothing the kids etc. I want to get this debt shifted asap, obviously at this rate it will take 10 years + which is less than ideal. Please dont suggest bankruptcy or IVA because these are all options we have looked into believe me but do not want to go down that route. I have offered some F&F's on the smaller debts but as most of them are over £1000 we would not be able to get a decent sum together to offer on those ones. At the moment most of the creditors are playing hardball and not accepting our 30-40% offers. They are nearly all with collection agencys and 2 have been sold. Can you tell me what sort of % I should be expecting to settle on please? Can anyone offer me any advice on how to clear the debts more quickly? I hate this hanging around our necks, it is making my health suffer and making me very depressed. Also if a creditor accepts an F&F do I have to accept them writing "partially settled" on my credit file? Many thanks for any help.

fatbelly

moneyangel22 wrote: »

I have had a self-managed DMP in place for around 4 years now with 10 creditors. My Husband started a DMP around 3 years ago. He works but I have had to stop working due to ill health and disability for the last 6 years which was the reason for starting the DMP. We have around £50k of debt and are paying token payments at the moment because all of his excess salary goes on food and clothing the kids etc. I want to get this debt shifted asap, obviously at this rate it will take 10 years + which is less than ideal. Please dont suggest bankruptcy or IVA because these are all options we have looked into believe me but do not want to go down that route. I have offered some F&F's on the smaller debts but as most of them are over £1000 we would not be able to get a decent sum together to offer on those ones. At the moment most of the creditors are playing hardball and not accepting our 30-40% offers. They are nearly all with collection agencys and 2 have been sold. Can you tell me what sort of % I should be expecting to settle on please? Can anyone offer me any advice on how to clear the debts more quickly? I hate this hanging around our necks, it is making my health suffer and making me very depressed. Also if a creditor accepts an F&F do I have to accept them writing "partially settled" on my credit file? Many thanks for any help.

In reverse order

Partially settled is the correct mark

Debt solutions come in two flavours - payments and insolvency. If you cannot go insolvent because of your career, or a property with equity or (with an IVA) property with equity and little surplus income then you are left with token or small payments, even though that's not a great strategy, and is going to take a long time. F&F can speed this up, but it's hard work.

What percentage is a question with a wide range of answers. I linked to another post in my last post. Settlements were 20% to 80%

There may be some mileage in looking at enforceability, doing CCA requests and also (if you can present this as a hopeless case) asking for write-offs.

https://www.nationaldebtline.org/EW/sampleletters/Pages/Write-off-the-debt-%28sole-name%29.aspx

moneyangel22

Thank you fatbelly.


Do you know how successful write-off requests are please?


I would love to be able to pay off all my debts but realistically....I did not know I was going to get ill and not be able to work again when I got into debt and the idea of it hanging over us for probably the rest of our lives unless we come into money depresses me.
I think I will look into this, although knowing they probably won't do it. I will look at your link about settlements and take some hope from that, although I know that is going to be another difficulty trying to raise the money. Many thanks