Full and final settlement v BR - house sold

haddit

Well here is a dilema, I have just completed all the BR paperwork and ready to hit the button and my house which has remained unsold for months appears to of sold - a cash buyer has made the offer today!

If all goes through , I will come out with about 40 K. This would only pay around half of what I owe. Should I try and avert BR by offering this to the creditors in full and final settlement ? What is the chance of them accepting this small amount ?

Any help greatfully recieved...

Sunk

haddit wrote: »

Any help greatfully recieved...

:rolleyes: Are you sure?
I'm a mere bankie.

k2nga

well if you consider that some companies who accept IVA's manage to get the companies to accept 25p in the pound as you are offering 50p in the pound you would think it would work but you might want to get some more advice from the charities.

So_Sad_Angel

haddit wrote: »

Well here is a dilema, I have just completed all the BR paperwork and ready to hit the button and my house which has remained unsold for months appears to of sold - a cash buyer has made the offer today!

If all goes through , I will come out with about 40 K. This would only pay around half of what I owe. Should I try and avert BR by offering this to the creditors in full and final settlement ? What is the chance of them accepting this small amount ?

Any help greatfully recieved...

I would try every single option available to avoid bankruptcy & if 40k equates to 50% of the debts you have then definately go for it.....you have a good chance of acceptance in the current marketplace.

Beware of cash buyers though!! they have a habit of reducing their offer last minute...forcing the vendor to reduce the house price or face losing the sale.

I wish you luck.

Angel

pink-lint_2

before we went BR we owed ge money £16000 and offered them £5500 and they said they would rather have £5 a month fo 83 years ... YES 83 years, then to say actually no we wont acept the £5 either and passed the debt to a collection agent.

i would get any settlement in writing first before you decide what you are going to do .

pinkx

tigerfeet2006

If you look through the DFW board you will find lots of people have done F&F's. If you ask they will be able to help you with it.

Bassplayer

hi Haddit

Give your offer a go...I'm going through the same thing at mo - tho sadly haven't sold my house yet! - and most creditors are making encouranging noises.

A mate of mine has just done a deal of a 50% once and for all payment with a load of credit cards...it seems in the current climate anything is better than nothing.

Remind your creditors that:

a) there's no IVA touting scam artists taking 15-20% of what should be going to them, and

b) they will get their money pretty quickly in one lump, not in a dribble of pennies and pounds over many years! plus

c) If you do go bankrupt because they won't play ball, they are likely to get an awful lot less!

Really hope it works out for you, let us know!

Cheers

BP

PS I'm trying to do a deal with one fairly famous secured/second mortgage company on this basis and got to talk to someone in their 'Shortfalls team' who seemed to be saying that if the offer's 50% or over of what the debt is, that team can ok the deal. However, if it's less than 50% of what's owed, it has to go to two directors for sign off! Not sure that rule counts for all creditors though!

skylight

But. You still need to hold out until you have the money in your hands. As mentioned, cash buyers tend to gazunder cos they can and usually at the last minute.

The process can take months and months to finalise and the problem comes in that sending F&Fs will mean that they will want payment within 28days or so. And you need every single creditor (or the majority share) to accept.

But. Anything is better than nothing, so the worst they can say is no. Use the templates on DFW board, tweak them to suit you and emphsise on the wanting to avoid BR at all costs. Ensure that if they accept the offers, that they are worded correctly - DFW can help with that, some creditors word it so they can still come back at a later date for the rest!


Not trying to put you off - just wanting to show you that things are never simple!