Full and final settlement help thread

Plcsbe

1st post and wondered if anyone could assist.
Been on a DMP for 7 years and being paying roughly 5k per year
that knocks 35k of a 110k debt and leaves me with 75k.

At current rate that would take another 15 years but now have the chance to get 18 - 20k via a buy of hours from Full time to part time. Pay would be reduced so wouldnt be able to maintain current DMP levels if i went down this route.

Would i have much chance of getting a F&F (split between the main banks and card companies) as would % be considered total repaid over years + settlement or just % on outstanding or am i just better off sticking to the long term arrangement.

fatbelly

Plcsbe wrote: »

1st post and wondered if anyone could assist.
Been on a DMP for 7 years and being paying roughly 5k per year
that knocks 35k of a 110k debt and leaves me with 75k.

At current rate that would take another 15 years but now have the chance to get 18 - 20k via a buy of hours from Full time to part time. Pay would be reduced so wouldnt be able to maintain current DMP levels if i went down this route.

Would i have much chance of getting a F&F (split between the main banks and card companies) as would % be considered total repaid over years + settlement or just % on outstanding or am i just better off sticking to the long term arrangement.

I think you're saying that you owe 75k, can access 18 to 20k, but your available income would be reduced if you did that. Would the creditors accept F&F of 25%?

I'm not going to make out that it's easy but, yes.

In the case I mentioned above we are trying to settle around 50k of debt similarly and 2 out of 8 creditors have settled so far (25 and 28%). In our case the alternative for the creditor is £1 per month for ever and there is no property for them to go after now.

That may be an important difference. Not the timescales as it sounds like you were on a 22 year plan (!) and that is about to become even longer. But I suspect, and so may the creditors, that a property with equity was the reason you did not go bankrupt or enter an IVA on that amount of debt.

So if I was one of your creditors, I'd be having a sniff around to see if a ccj and a charging order was a good route to go down.

Matt38_2

Just a quick question! If I was to offer say 25% to a creditor via letter and was refused , how long should I wait till I make another offer and shall I stick to my guns on the % that I offered?

Plcsbe

it was 110k at first and was making min payments before starting a DMP 7 years ago. At current repayment rates it would take another 15 years. Dont have property and am in a rented flat and do want to pay back what i can as it was my fault.

The cash is possible due to a company scheme where they are currently trying to buy down hours of staff who have been there a long time (Been there over 20 years) and payment would be part of contract that saw hours reduced from 40 to 20 and therefore basic pay halved.

So obviously couldnt afford living rent, council tax etc and DMP amount so F&F would have to be successful for me to go down that route. Otherwise i will just take the long term and keep as i am.

Obviously because of renting and budget sheets creditors are aware of situation so accepted DMP in the past and havent pressurised with CCJ or action and i stopped getting phone calls and letters years ago. Bankruptcy may be the easy way out but am keen to avoid it for stigma.

Miss_Poohs

Hi everyone
I posted the same query in its own thread but think perhaps it belongs in here - feel free to delete duplicate - apologies.


Ok OH has his DAS - it's been running for nearly 4 yrs and in that time he's repaid about £25000 but still has £48000 ish to go.

He's really struggling - he's checked out Scottish trust deeds and bankruptcy neither of which we think will work because he owns half of a property his elderly mother still lives in.

None of the debt is mine - it was all kept hidden from me until 4 yrs ago when the whole terrible truth was forced out of him.

I've come into some money and have suggested helping him out - he's not keen being that the debt is his - but I feel we've all suffered enough.

Being that he is in the DAS and paying regularly albeit reduced amounts - will his accounts all be in default?

I think I'm right in saying his debts are all with the original lenders.

What would be his chances of a f&f and where would be a wise starting point for offers?

Thank you.

fatbelly

Plcsbe wrote: »

Obviously because of renting and budget sheets creditors are aware of situation so accepted DMP in the past and havent pressurised with CCJ or action and i stopped getting phone calls and letters years ago. Bankruptcy may be the easy way out but am keen to avoid it for stigma.

You could let the creditors know that bankruptcy is an option you are considering if you can't reach agreement. If there's no reason (other than perceived stigma) not to go bankrupt, then they ought to be receptive to a low lump sum f&f!

butyourwarm

after reading through this thread i would like to ask about f&f regarding a business loan i have with natwest.the loan was taken out in 2008 for £25500 for my partner but solely in my name.we owe around £14500 which i have paid uptodate.we had a prob with late payments but this was due to a charge that came into effect after 2years that we knew nothing about and have since had any charges paid back and sorted.the business failed last sept but we have continued paying the loan as a business.my wife has found part time work but is not secure.we have around £6000 savings at the moment (some came from the sale back of business(franchise))that i would like to use in a f&f settlement.

what would be an ideal way of approaching this with natwest or would it be viable to go through a 3rd party.have looked at bankruptcy-insolvency .co.uk and have come across a letter similar to the one posted page 2 which we think we could use.

any advice would be grateful.

thanks

sickasachip13

Time for a bump for this thread I think.

Sambo81086

Hi im sorry im new to this and just looking for a bit of advice from others in a similar situation to myself. Long story short had a 10k loan with natwest from 2007 have roughly paid approx 5-6000 but the last 2 years has been on a DMP paying minimal amounts. My last statement shows the figure to be 7200 as its a front loaded interest loan. The company I use for DMP take quite a chunk in admin fees and i'll still be paying for next 15 years lol so decided to contact natwest credit management direct who have offered to arrange a payment plan but did suggest settling the account. When I asked the lady how much it would take she just asked how much do I have. I'm coming to the end of a car insurance claim and should be getting 1000 back for expenses excess etc does anyone think if I offered this they'd take it or would they laugh down the phone lol any help advice appreciated thanks

PinotGrigio41

Sambo81086 wrote: »

Hi im sorry im new to this and just looking for a bit of advice from others in a similar situation to myself. Long story short had a 10k loan with natwest from 2007 have roughly paid approx 5-6000 but the last 2 years has been on a DMP paying minimal amounts. My last statement shows the figure to be 7200 as its a front loaded interest loan. The company I use for DMP take quite a chunk in admin fees and i'll still be paying for next 15 years lol so decided to contact natwest credit management direct who have offered to arrange a payment plan but did suggest settling the account. When I asked the lady how much it would take she just asked how much do I have. I'm coming to the end of a car insurance claim and should be getting 1000 back for expenses excess etc does anyone think if I offered this they'd take it or would they laugh down the phone lol any help advice appreciated thanks

I would personally offer whatever you have and can afford, they can only say no. We have yet to try and make any offers for F&F's , but have been advised to go in as low as 15% initially and upwards from there. Hopefully some more experienced people will be along soon to offer some more advice.

One question though, have you considering changing your DMP Company to one that doesn't charge you ?

Pinot x