Full & Final Settlements

kimlyn_2

We owe £100,000 and are facing BR.We have no assets and a car worth £1500.00.

A family member has offered us £10,000 to repay our debts and was wondering if anyone has managed to get F&F settlements of only 10%?

Broken_hearted

Very few . Would getting rid of a few of the debts make it possible for you to manage.If so you could offer a few of the creditors offers rather than them all.

kimlyn_2

Are you allowed to do that?

I thought you could not pay one creditor over another?

GeorgeUK

Have you checked to see if they have enforcable credit agreements for any credit card or loans? If they cannot produce the agreements within 12 working days of request or the agreement does not have all the required prescribed terms as laid out in the Consumer credit act, then the debts may be unenforcable. Possibly worth looking into if you think you are facing bankruptcy.

kimlyn_2

I know one of my catalogues,I never signed and returned the agreement,but all of my other debts I did sign the paperwork.

If they cannot provide a copy with my signature,is the debt then cancelled?

bcljnk

Can i ask is there any special criteria that you have to have to do a full and final settlement, i currently have 2 loans and a couple of credit cards i keep transferring to 0%s, and it is becoming difficult to manage i am at the state were i might, well will have to rob peter to pay paul, ie one credit card to another, just wondering if a family member could help me out could i pay these off rather than go bankrupt which is a possibility as in 2 months my income will be reduced considerably, whats the normal %, (just thinking roughly i prob have £22K of debt)
Thanks if anyone can help

GeorgeUK

kimlyn, it's not quite that straightforward - the debt will still exist. It will just be unenforcable until they can produce a copy of a CCA with all the required terms.

This post has links to more detailed threads
http://forums.moneysavingexpert.com/showpost.html?p=17900951&postcount=5

bcljnk - You might want to look into whether they have a copy of the CCA too. There's no special criteria for making F&F, but if they can see that the debt is unenforcable, they may be more inclined to agree to getting something rather than nothing. Have you spoken to any of the free debt charities such as Payplan or CCCS? Bankruptcy should be the very last option so they may be able to offer other advice. If you do want to do a F&F, there are template letters on the forum and the nationaldebtline site. It's usually advised to make clear that the money is coming from a 3rd party and that the offer is only available for a limited time.

If the debt is with the original creditor and you have defaulted or are not making the minimum payments, 50%-75% but if the debt is with a DCA, 25%-50% may be acceptable.

Billy_two_speakers

kimlyn wrote: »

Are you allowed to do that?

I thought you could not pay one creditor over another?

your correct you can not show favour and if you go BR and have given a sum to one person or company the people dealing with your case can and do sometimes go and get the cash back and re share the money out

last night on the BBC program? bust this was brought up when a girl went BR and had paid out seven months earlier £1,800 to her mum and about £700 to her sister

they did not take the money back BUt they looked into the matter to make a decsion which was worrying to the girl going BR

bcljnk

Thankyou GeorgeUK, all debts are still being paid but weras i used to pay way over the minimum amount it is now getting lower and lower, soon i will only be paying the minimum payment and one is still getting interest as i didnt get accepted for a new 0% recently, so all debts are with the original lender.
I am unsure what you mean though in regards to them being unenforcable, and CCA, as i have never been in a position like this.
I will definelty get in touch with one of the debt agencies sooner rather than later, i would like to steer away from bankruptcy if i can.

GeorgeUK

Have you tried reclaiming any bank or creditcard charges bcljnk?

Might also be worth posting up a statement of affairs in a new thread incase there are some savings in other areas that you could make.
http://www.makesenseofcards.com/soacalc.html

bcljnk

Thanks again George, likei say things are OK ish at the minute, and i havnt got any charges to claim back as i always pay on time, i will get that SOA done when the kids are in bed:D