Final Settlement

MrsTinks

Gliderguider wrote:

Don't recall asking for sympathy, just maybe a few hints from others that have found a way forward from a similar situation.

I have been through a very bitter divorce that ended up in me taking on my ex's debts by order of the courts. Excuse me for not exactly being too chuffed about paying them off!

I have been paying the ex £600/month for the last 1 1/2 years, and should have paid for the next 3 1/2 years. Luckily (good move or not) she has settled in having the house and I no longer pay. (Although I would have been entitled to 50% of equity at the end of the 3 1/2 years). There was only £10k equity between us at the point of recent settlement, and I would have forked out another £24k over that period!

Thought it better to be financially separated and to move on. I understand from other posts that people have managed to acheive settlement figures considerably lower than the outstanding balance noted by the DCA.

GG

Firstly my comments were aimed at the OP - sorry if that wasn't clear. Second I got left with nothing but debts when splitting from MY ex and HE got the house and everything in it. I had 2 cats, my pc and a few boxes - pretty much everything else I lost. The house we both bought and paid towards cost about £70k and is now worth about £150k... not seen a penny of this myself. Still having to deal with the debt tho...
ANYWAY my point is probably better explained by the previous replies of other people - if you don't pay it all back then chances are they won't be marked as paid in full. That means the marks will remain for 6 years. And good luck trying to explain to a creditor that you'd like the marks removed so that you can take out a mortgage (bet you first remark will be "ah - well you can up the mortgage and pay us MORE then ")

Tootsie_Roll

ickyxxx wrote:

Hi Everyone,
I was wondering if someone could help me urgently. I need to clear the defaults from my credit file so that I can get a mortgage. I am in about £30,000 in debt with loans, credit card, and comet. These were taken out 4-5 years ago when I was married. Then I got divorced, went ill, depressed and have been paying token amount to the six debtors for the last 3 years.
Now I am beginning to get on my feet and am interested in buying a house. My credit file shows 6 defaults. The motrgage company is willing to give me a mortgage on the condition that the debtors take off the defaults by settlement.
Please advise.
Regards
Ickyxxx

Good luck with the short settlements, as a former dca and collections manager I would look very favourably at getting a lump sum now rather than small payments over a longer time frame.

You have got almost no chance of having the defaults removed though, the most you can expect is for them to mark them now satisfied and some lenders will not even do that if they have accepted a reduced amount. Looks like you may have to wait a couple of years until they drop off your credit file.