Full and final payment on court order - advice pls

livilou

hi there,
haven't posted in a while but history - husband bankrupt after failed business, I had signed for one loan so inherited the debt from a factoring company who don't mess around!!

sum owed was £18k - he only borrowed 11 but the rest was interest. court ordered I pay £40 a month after a 5k lump sum i offered. so I paid 5k, and then they threatened court again so paid another £5k this being the last of any monies we had. they contacted me again in november and thanks to parents in law who want to help me I wrote and asked if they would conmsider a full and final offer on the debt. the creditor has asked for 5k to settle it which my parents in law are willing to pay and I will pay them back. Well they have said 4k so that is what I am going to offer. my questions or calrifications that I am going to put to the creditors are as follows:

1) Once the final payment is paid I will cancel the 40.00 a month but need confirmation that they will not then take me to court for not paying the 40.00

2) they will not pass the remaining debt onto a third party

3) can someone advise how I inform the court that the debt is settled or do the creditor do that?

4) that this an end to the matter and the debt is considered paid and settled and they will nto take any further action/

if anyone can help I would much appreciate it as I need to put a letter together and just want to make sure I cover all angles.

National debtline advised to make the payment via a third party as this is mroe legally binding,

any help or tips would be much appreciated.

thank you

xxxx

2)

[Deleted User]

First of all - contact them in WRITING with your offer of full and final settlement. Explain that you are not able to raise £5k but have £4k which they could have by return of post. They may haggle between the two sums so only accept what you are able to pay.

Whatever they agree to, make sure it is in WRITING and not over the phone - then send them the cheque, recorded delivery, and enclose a letter askng for a final invoice/letter of confirmation showing the debt is now resolved as per their letter of acceptance dated... whenever.

Don't cancel the £40 per month until you have been notified in WRITING the debt is now resolved. But don't let them muck you about with delaying sending out the letter. Give them 5 - 7 working days (to allow the cheque to be banked and cleared and then start chasing.

You can then contact the Court with a copy of your final invoice or letter acknowledging that full and final settlement has been made - and that should be that!

livilou

thank you for responding incecoolbabe, I have done all corresponding in writing and have kept copies of everything, you have helped reassure me that I am doing all I can to cover by backside!!!!!

thanks again
x

tempest42

Could I just add, that if any of the outstanding debt is charges, make certain they are not punative and therefore reclaimable, guess it would be worth mailing dcurch24 {soz more work for dchurch24} on here, the charges often make a massive difference and could well wipe out a large amount of your debt.
Hope it helps D.

livilou

hi there , thanks for your reply tempest42, I should have updated this but I actually managed to get them to agree to a final offer, I have it all in writing, they accepted less than the full amount and I have it in writing that once the cheque is cleared they will send me certificate/letter stating that the debt has been satisfied so i can send it to the courts. I have assurances in writing that no further action will be taken, the debt is considered paid in full etc so fingers crossed!!

and to make my week better hubbies bankruptcy is officially over as of midnight tonight. we still have a long way to go and the house is till being sorted but we are managging to survive each month - just!!!

thanks again for your reply
x