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Debt Problems
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anony.mouse1
Posts: 5 Forumite
I have a friend who has been quietly racking up debt for years.
His wife has Parkinson's and he is planning for their retirement.
He is considering making full and final settlement offers (roughly 50%) to all his creditors.
Since the house is in joint names with his wife, he does have some assets, in the form of equity in the house. Most of the debts are, however, in his name only.
He has no other assets, and very little disposable income.
Is his share of the equity in the house technically liable to cover his debts, and therefore if declared, would this jeopardise the likelihood of his creditors agreeing to reduced settlements? Therefore, would it be better to *not* declare the equity, and pay the debts through a third party? (e.g. a relative offers to settle the debts?).
Also, he is concerned about a couple of the accounts that showed up on his credit file, and has no recollection of them. I understand that in order for a scheme of full and final settlement offer to be accepted by all creditors, they must all be offered (and accept) the same pro-rate proportion of the outstanding debt. Therefore, if he were to ask for proof of two of the accounts (CCA requests) would this not hold up the process of agreeing settlements with all the others? He has reason to believe that these two accounts may have been applied for, in his name, fraudulently (at his office address).
Any help in this matter would be greatly appreciated, as it is having a deterimental effect on his whole family. All they want is to see him and his wife enjoy a happy and secure retirement.
His wife has Parkinson's and he is planning for their retirement.
He is considering making full and final settlement offers (roughly 50%) to all his creditors.
Since the house is in joint names with his wife, he does have some assets, in the form of equity in the house. Most of the debts are, however, in his name only.
He has no other assets, and very little disposable income.
Is his share of the equity in the house technically liable to cover his debts, and therefore if declared, would this jeopardise the likelihood of his creditors agreeing to reduced settlements? Therefore, would it be better to *not* declare the equity, and pay the debts through a third party? (e.g. a relative offers to settle the debts?).
Also, he is concerned about a couple of the accounts that showed up on his credit file, and has no recollection of them. I understand that in order for a scheme of full and final settlement offer to be accepted by all creditors, they must all be offered (and accept) the same pro-rate proportion of the outstanding debt. Therefore, if he were to ask for proof of two of the accounts (CCA requests) would this not hold up the process of agreeing settlements with all the others? He has reason to believe that these two accounts may have been applied for, in his name, fraudulently (at his office address).
Any help in this matter would be greatly appreciated, as it is having a deterimental effect on his whole family. All they want is to see him and his wife enjoy a happy and secure retirement.
0
Comments
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Just posted re something similar
https://forums.moneysavingexpert.com/discussion/2697093
He doesn't have to tell them anything - just make the offer using the standard letter.
No, the offers need not be pro-rata and so on - it's just a series of deals done with each individual creditor.
Obviously if he is being chased for debts that aren't his he needs to challenge this - with a prove-it letter0
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