Selling my flat, should I tell my creditors?

fluffthecat

I've decided to sell my flat to pay off all my debts. £30,000's worth!

Should I tell them, so that they give me some extra time and not harrass me so much because of unpaid monthly bills?

Thanks everyone

Fluff

Degenerate

Can't do any harm.

Robert_Sterling

It might take a long time to sell it.
I am not optimistic that the lenders will be impressed.

dotstar24

its up to u. i was 21 when i 'left' my old lodgings and it's taken me 5 yrs to get any sort of credit (Vanquis)...never had any come back from it though. am not recommending this, but just letting u know my experiance

j2009

I wouldn't tell them for three reasons:

1) I have read that if they know you are trying to sell and if they can legally put a charging order on the house then they will accelerate the process of doing so (to protect their interest in it). This will just complicate the sale.

2) If you do sell your house then it is better that they don't know so you can make full and final settlement offers which may be lower than the outstanding balance(s). If they know you are getting profit from a house sale then their expectations of the amount of a F&F settlement may be higher.

3) I doubt it will make any difference to how much they hassle you because unfortunately people probably often tell them they're trying to sell their house (either as a lie to get them off their back for a bit or genuinely as an ill thought out attempt to sort their finances which never comes to fruition). Just to be clear I am not saying you are doing either of these but unfortunately they don't know that and therefore they will probably be sceptical and expect you to make payment in the interim and hassle you just as much.

I hope this helps a bit.

fluffthecat

Thanks for the tips and advice. I will probably keep quiet about it and run the course of pro-rata repayment until I sell up. Fluff