loan been passed to me

mellersh

my husband was made bankrupt in dec 2010 and we have recieved a lot of help from that forum but i could do with some help please.We had a joint loan with Nat West and were paying £500. a month it has now fallen to me to pay .There is £3,419 left to pay and they are asking me to restart the repayment of £500. which of course i cant being on a pension. Can you explain what a could offer them as more than 2/3 rds has been paid any help would be greatly appreciated

MoneyMax

If I was in your position I would white a without prejudice letter to the loan company, you can get letter templates online, im new here so not allowed to post links yet. UK Insolvency Helpline website has these templates.

Write telling them either how much you can afford to pay monthly or if you can get some money together you can even offer a full and final settlement (lower than the ammount outstanding)

This worked with my IVA company saving me over 12k in the long run, also with british gas and united utilities, I now pay what I can afford of my debts.

Ive only just joined this forum but ive had my fair share of financial difficulty and finally almost coming out the other end!! Hope I can help others too xx

Good Luck x

DarnIt_3

You can offer them what you like....you can offer £10 a month or you could ask for a full and final settlement figure which could be just 40% of the debt.

Call them explain you can offer X amount, if they don't take you can't pay it and bluff and tell them you will file for bankruptcy....they would rather a small amount than none at all.

Good luck

Tixy

mellersh wrote: »

my husband was made bankrupt in dec 2010 and we have recieved a lot of help from that forum but i could do with some help please.We had a joint loan with Nat West and were paying £500. a month it has now fallen to me to pay .There is £3,419 left to pay and they are asking me to restart the repayment of £500. which of course i cant being on a pension. Can you explain what a could offer them as more than 2/3 rds has been paid any help would be greatly appreciated

Hi

How much can you afford each month? thats the amount you should offer to them. Obviously if you can't meet the £500 repayment then your credit file will be affected. They can then either accept those payments or they could decide to take court action. But even if they decided to take court action against you a judge would not order you to pay more than you can afford.

mellersh

Thanks everyone for your comments .Just an update I contacted Nat West today to try and come to some arrangement either payment plan or settlement but they told me I should wait to hear from debt agency to contact me. They said I would then be able to come to an agreement with them to pay a smaller settlement figure although this would give me a bad credit rating for 6 years.As I am now 62 yrs I dont think this would affect me unless my bank is made aware of this .Any advice please Thanks

dancingfairy

Hi Mellersh - it might be worth having a chat with one of the debt charities such as national Debtline or CCCS but essentially if you can't pay you can't pay as Tixy said.
Not sure what your situation is but is bankruptcy an option for you or perhaps even a DRO so you can enjoy your pension years without all this mess hanging over you?
O.k it will affect your credit rating but your age is likely to as well - ie you have no earned income to repay any credit cards/loans etc and I would assume you are unlikely to be taking out a mortgage anytime soon etc?
Oh and if you are jointly linked with your husband then as he has gone bankrupt your credit rating is likely to be also shot by now too.
In summary frankly I wouldn't worry too much about a bad credit rating - it should exactly affect your quality of life.
In terms of morality I think the best thing to do would be to explain to them you are a pensioner on a reduced income and can only afford a settlement of x to get them off your back, otherwise you will be stuck making token payments for a long time or looking at something else like a DRO/ bankruptcy. Morality aside though they've probably made their money out of you several times over already so you might not feel too guilty if a DRO/Bankruptcy was the best option.
It's really up to you.
Best of Luck

df

mellersh

Thanks for your advice .I am not linked to my husbands Bankrupcy order as it was a VAT business debt and he was made bankrupt by HMRC .I wouldnt want to go Bankrupt myself as the house is in my name and always has been . Im not sure what a DRO is also had a PPI on this loan of £2000 thinking of applying for a miss-sold as my husband was self employed and it didnt cover him.Can i use this as a barganing tool THANKS

fatbelly

Hi

You had a joint financial product (the loan) so your credit file will be linked to your husband

As a homeowner you can't do a DRO.

Definitely reclaim ppi as the first thing you do. Guidance here

Make any offer of payment in writing and keep a copy of everything you send.

Best of luck

fatbelly

MoneyMax wrote: »

If I was in your position I would white a without prejudice letter to the loan company, you can get letter templates online, im new here so not allowed to post links yet. UK Insolvency Helpline website has these templates.

Those templates and factsheets are out-of-date versions of the National Debtline ones.

Best to direct people to the updated versions on

http://www.nationaldebtline.co.uk/england_wales/

No need for letters to be 'without prejudice' unless you're suggesting something that you wouldn't want to be referred to if there were court action.

mellersh

Hi everyone thanks for your replys it has taken this long for a debt agency to contact me !!! I wrote to them offering £1,500 to settle the loan of £3400 and pointed out that the PPI payment of £2500 was payed on the loan and to take this into consideration.They replied asking for income and outcome forms to be filled in and bank statements to be sent by return .Can they ask for these as it hasnt gone to court .I havent sent anything .Thanks

fatbelly

If you do a ppi reclaim as I linked to earlier, the debt (on your figures) will come down to £900

You can then pay £900 in full settlement of the account, rather than £1500 in part settlement.