Debt written off?

WOODSTOCK

Hi,

I wonder if anyone can help with some advice?

Somebody very close to me has run up a debt of 30k in various forms, OD, CC and loans mainly.

They cannot pay this off and have little in assets. I can get the money however I wondered if its worth trying to get some of the debt written off if I offer to pay it in a lump sum to clear it once and for all.

Is this possible, are there consequences such as poor credit history etc.

Thanks any comments greatfully received.

Woodstock

bottleofred

Hi Woodstock,

Depending on the age of the debts, there may already be defaults and ccjs on the persons credit file, which would obviously have an impact on their credit rating. The older the debt, the less they are likely to accept as a settlement figure, but if you do go down this road, it will result in the words partial settlement being put on the persons credit file, which could also hinder their ability to get credit. However, I would only deal with the companies in writing and would always look for the words "as full and final settlement" of the debt in the letters. Debts of around 4 years old normally settle for 20-30%, where debts of maybe a year old may be as much as 80-85%. So it really depends on the circumstances regarding settlement figures. There is a template letter on the national debtline website that can be used to make the settlement offers.

backinbusiness

If you are considering lending this money I think a read of the "lending money to friends and family" thread might be worth a look.

Nice friend tho'

bib

WOODSTOCK

Thanks, for the advice, they are very to me.

fatbelly

Bankruptcy not an option?

WOODSTOCK

Not really, would cause difficulites and with stigma etc, Also there is a change of a lump sum in a year or which two which bankrupcy would take. A bit complicated!