full and final settlement question

riquelme

some advice please

currently 18 months into a DMP paying £300 per month and still owing approx £17k. i have recently come into £12k ad am going to use it to offer my creditors a full an final settlement which is about 2/3 of what i owe. On the template letter from CCCS it states 'i am unable to make payments on this account because ...................'

the above sentence suggests that i have a problem with future payments, to which i havent so are my creditors likely to accept a reduced sum even though my circumstances havent changed? or would i be better giving the money to a friend to act as a 3rd party and negotiate on my behalf?

any advice gratefully received

fatbelly

Hi

You should always indicate that the funding is coming from a third party (usually a 'family member')

You are in a dmp with nearly five years to run. That gives you less scope for f&f than one for instance with 1000 years to run, but it's still possible. You might just not get such a good deal.

Start low - you can always move up. Maybe start at 35%.

If that problem sentence doesn't apply, then just delete it. The National Debtline version standard letter is a little different:

Dear Sir/Madam

Re: Account No/Reference No:

I write with reference to the money which you are claiming on the above account.

I can confirm that I am unable to offer to pay the money which I owe in full (Add details of your circumstances and financial situation). However, I can raise £ (put the amount which you can afford to pay) and I want to offer this as an ex-gratia payment in full and final settlement of the account. This offer is made on the clear understanding that, if accepted, neither you or any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that I will be released from any liability.

I also request that, if accepted, you will mark any entry on a credit reference agency file relating to the above account as "satisfied" in full.

Payment can be made within (put the number of days or weeks within which you will pay) of receiving your written agreement of this offer and method of payment.

I look forward to receiving your reply.

Yours faithfully

riquelme

thanks,

just to add that currently i am going through a separation and the only money i can get hold of is a partial settlement of £12k for the house that we are in. Is it acceptable that it is a gift from my wife?.
The amount is low because my wife cant afford to move and therefore i do not wish to put her and the children through any stress of moving or getting into debt, the house finances will be settled between us at a later date