Full and final settlement help thread

harvey180

Thanks for all the advice. One final point I was unclear on.

One of my debts is on a CCJ. Dont know if I can negotiate a Full and Final on a ccj or if I am committed to paying the full amount.

Anyone got any experience of this.

Many thanks
Jonathan

henrryyyy

Hi, I've been looking at doing a F&F with one of my creditors, when looking on the nedcab site I read this:

Is a Full and Final Settlement legally binding?

There will be a legally binding agreement if either

• an arrangement is made with all your unsecured creditors: or
• the funds are made available by a third party (for example, a relative) and the offer is made by him / her: or
• the agreement is embodied in a formal document known as a 'deed' The services of a solicitor will be required if you want a deed drawing up - for example, if you have any doubts as to the trustworthiness of any particular creditor

does that mean I cant make an F&F to just one creditor?

sourcrates

henrryyyy wrote: »

Hi, I've been looking at doing a F&F with one of my creditors, when looking on the nedcab site I read this:


does that mean I cant make an F&F to just one creditor?

You can do what you like.

As long as you use the correct template letter that states they :


"agree not to sell on the remainder of the debt, and neither they nor there agents will chase you for the balance, the account will be closed, and you will have no further liability."

As long as you have that in writing you can do what you want, to, with, or how, you want, to anyone you want, there are no rules for you, only guidelines.

If your self managing, then your the boss.

sunflower17

harvey180 wrote: »

I was wondering if I could ask some advice from some of the more experienced members.
I’ve been on a DMP for the last 6 years and have cleared 25,000 of a 57,000 debt that I started with. The debts belong to me and my wife.
I’m managing to make the payments fine, however I’m looking at another 8-9 years to clear the remaining 32,000.

All of the original defaults have disappeared off my and my wife’s credit files and ironically I have a relatively good credit rating at the moment. I am trying to gauge if I should apply for full and final settlements for the remaining debts, most of which have been sold onto the agencies below. I was thinking that I could potentially settle the 32,000 for 50 – 70% of what I owe and then add this to my mortgage (ie perhaps 20 – 23k).

I don’t want to upset my DMP by asking for settlement figures from these companies. (Don’t know if this would actually happen). Also don’t know if there is an advantage to even thinking about this. Just know I would feel better if I could clear the DMP completely.

I turned to MSE when we first realised that things had gone too far and can’t recommend the site more, it got me and my family back on track after realising we had been living life the wrong way.
many thanks in advance


Jonathan

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We too are desperate to get things resolved and gone. We are totally confused as to what to do. We have been offered a lump sum by family but it would cover only 33% of what we owe.( probably wouldn't be accepted). We will only be given the money to clear the debt .we still have 17years left. sc tell us we can't treat one company differently to another (we have been offered a settlement figure from one company). This was for the smallest debt of £600. How do we pay this without upsetting the other creditors? I don't want to risk making things worse and demands being made from the other creditors.

If we paid one off at a time does it look unfavourable?

sourcrates

sunflower17 wrote: »

We too are desperate to get things resolved and gone. We are totally confused as to what to do. We have been offered a lump sum by family but it would cover only 33% of what we owe.( probably wouldn't be accepted). We will only be given the money to clear the debt .we still have 17years left. sc tell us we can't treat one company differently to another (we have been offered a settlement figure from one company). This was for the smallest debt of £600. How do we pay this without upsetting the other creditors? I don't want to risk making things worse and demands being made from the other creditors.

If we paid one off at a time does it look unfavourable?

Hi,

Stepchange would not allow preferential treatment.

The only way you can play it this way, is to go self managed, 17 years is an unacceptably long time in my opinion, have you looked at an IVA, or even Bankruptcy at all ?

sunflower17

Not an option due to job......

Very unsure how to work this out .....

fatbelly

Self-manage. Pay a low amount each month. Save on the side

cca everyone (who has a consumer credit act debt). Those who can't supply an agreement, stop paying.

Start offering F&F to the others at a low offer, emphasising how long your dmp will be taking if they don't accept the offer.

Radar_UK

I'm after a little advice please.

I have been paying my debts off via a DMP and have paid off one debt, an overdraft, in that time. I started the DMP at the end of 2012 and am currently left with £3000 of debt, paying £200 a month, and have paid off £16000.

I am about to get some money and was wondering if I am better off just paying the debt off in full or should i make F&F offers on the remaining debt.

With the money I am about to get I am hoping to use the remainder towards a deposit for a mortgage. Will making F&F offers damage my chances of getting a mortgage more than settleing in full?

For info one of the debts shows as defaulted 06/13 and the other 06/15. This is despite me entering the DMP in 2012.

[Deleted User]

Radar_UK wrote: »

I'm after a little advice please.


For info one of the debts shows as defaulted 06/13 and the other 06/15. This is despite me entering the DMP in 2012.

Just a quick reply about the defaults. I don't think creditors have to default. They seem to be a law unto themselves when and if they do default. In my experience it wasn't until about 6 months into my DMP before I got my defaults although one creditor only defaulted this year after my DMP start date was early 2013:mad:. I hadn't had a period of reduced/no payments pre-DMP though, I just dived into it after struggling to keep up minimum payments for a couple of years. Defaults don't automatically coincide with the start of the DMP unless you missed several month's payments prior to starting yours.


It would be worth contacting the creditor who was very slow to default and ask for it to be backdated. Some play ball and some don't but people have been successful getting it done in some cases. Someone posted the wording somewhere for her successful appeal. I'm a bit rushed now but will see if I can find it later;)

fatbelly

Radar_UK wrote: »

I'm after a little advice please.

I have been paying my debts off via a DMP and have paid off one debt, an overdraft, in that time. I started the DMP at the end of 2012 and am currently left with £3000 of debt, paying £200 a month, and have paid off £16000.

I am about to get some money and was wondering if I am better off just paying the debt off in full or should i make F&F offers on the remaining debt.

With the money I am about to get I am hoping to use the remainder towards a deposit for a mortgage. Will making F&F offers damage my chances of getting a mortgage more than settleing in full?

For info one of the debts shows as defaulted 06/13 and the other 06/15. This is despite me entering the DMP in 2012.

From a money point of view, it's better to do F&Fs but the partially settled mark might be viewed less favourably than fully settled.

You might be able to persuade the creditors to backdate the default as part of the deal. If you can't do that the latest default will show until 2021 and that will definitely have an impact on your mortgage applications.