what to tell creditors?

homealone_2

besides putting income and expenditure how much more info should i put on my budget sheet? should i give them details of my assets?

jenchin66

Someone will be along soon who can offer some advice.

homealone_2

is anyone around now that can maybe shed some light on this please?

10past6

You're under NO legal obligation to tell them any details, only a court can request deatils of an I&E.

I would send the following letter to your creditors

Your Address

Creditor Address

Date


Dear Sir/Madam

Re:− Account/Reference Number

I am sorry I'm unable to pay the original monthly payments because [YOUR PERSONAL CIRCUMSTANCES].

I have discovered that I have disposable income of XXX. Since I have £XXXXX total debt, your share of this pro-rata offer is £XXX.

Please find enclosed the first payment, and I also request that you send me a paying in book / account information so I can make further payments monthly.

Also, could you please consider using your discretion to freeze any interest or charges that might accumulate, which I am aware is the standard practice for socially responsible companies such as yourself.

Yours Faithfully

XXXX (type, don’t sign)

homealone_2

do you mean just the letter and no bufget attached?

10past6

homealone wrote: »

do you mean just the letter and no bufget attached?

You don't need to send an I&E, just send the letter making an offer, the chances are they'll reject your offer, but deal with that as and when it happens.

tomterm8

I think, if you are going down the DMP route, sending them a statement of affairs is worthwhile, which includes income, expenditure, and other debts. You shouldn't inform them of any savings, assets etc.

It's not so much that you are required to do this by law, but it does make sence and is similar to what CCCS / payplan etc would do. It gives them much less wiggle room, and increases the likelyhood of them accepting an offer.

homealone_2

is there any particular budget template that you would recommend?

Deep_In_Debt

As tom has said, if you show that you have savings etc, they are likely to reject your offer and want full payment. It is worthwhile sending an I&E so that they can see that they are getting a fair cut of your available and that you are not living beyond your means.

Having said that, can you not use your savings to clear debts? That might be the way to go. F&F settlements.

Deep_In_Debt

Try National Debtline website - they have some great standard letters and templates to download.

tomterm8

Personally, I like the national debt lines one http://www.nationaldebtline.co.uk/england_wales/budget_sheet.php?country=england_wales , but CCCS, Payplan, and the citizens advice bureau all have templates, and they are all perfectly acceptable.

Deep_In_Debt wrote: »

As tom has said, if you show that you have savings etc, they are likely to reject your offer and want full payment. It is worthwhile sending an I&E so that they can see that they are getting a fair cut of your available and that you are not living beyond your means.

Having said that, can you not use your savings to clear debts? That might be the way to go. F&F settlements.

You introduce it as a relative offering to pay a full and final settlement offer, that way there's less risk that they just go and sue you to get a third party debt order.