Advice clearing debt

WannaBFree

Hi all,

Long time fan, first time poster. After months of reading all the great help you have all given each other i finally registered to seek some advice for myself.

I got myself in a bit of a mess around 5 years ago when i was really ill with Chrons Disease. I was off work for a few years and had no earnings making me unable to keep up the repayments on my debts which before hand were manageable. I got better and went back to work. Im not going to lie i hid from my debts at first but now the DCA's are chasing. One is for attached to my earnings for roughly £6000.

I still dont know the full extent of my mess as i am waiting for my credit report to arrive in the post. I THINK im in about £17,000 of unsecured debt that hasnt been paid in approx 5 years.

I have just found out i am going to be redundant from November and im getting approx £8,000 redundancy settlement.

I have been reading a lot about bankruptcy, of which i discovered the OR would take my redundancy so that is pointless. Another thing ive looked at is Full & Final Settlement. Do you think £8,000 would clear £17,000 of debt as settlement? and would the debt attached to my earnings be considered for a reduced settlement?

Im lost and i dont know what to do.

ANY advice you guys can give me would be really greatfully receieved.

Cheers

fatbelly

Reading between the lines, you're in rented accommodation. So with no property and no job, creditor options for enforcing a debt are a bit limited. The attachment of earnings must have a ccj underlying it. You will have to see how they respond to your wages stopping. Even on that debt a F&F may be possible.

Is it possible to clear 17k of debt with 8k? Yes it's possible. but hard work.

One school of thought would just be to go bankrupt anyway and the job's done.

But I understand the attraction of trying to avoid this route.

Why not have a chat with National Debline. They are not going to sell you anything and they are clued up on full & finals.

Factsheet | Full & Final Settlement offers