Full & Final Settlement - Likelihood of Acceptance?

I_Know_I'm_Not_Alone

As a result of an Interim Charging Order being made on my property by HSBC, my parents have sold some shares and cashed in an ISA and have £15K to offer to HSBC as a full and final settlement against a £24K debt.

What do you think the likelihood of acceptance will be?

I am currently on a DMP with CCCS and have debts circa £70K, but HSBC has previously 'refused' reduced payments of £140p/c/m.

Anyone any experience with HSBC and their solicitors?

lou_lou_skinty_poos

i'm no help sorry but bump bump bump

Gemmzie

I think if you are on a DMP then you have to split the lump sum between all of your creditors as a pro-rata payment.

CLAPTON

what are you currently paying HSBC?
when did you default on their debt?

I_Know_I'm_Not_Alone

I am paying them £140ish via my DMP. I defaulted by way of a "forthwith" CCJ at the beginning of this month.

My parents have only made the offer here as they're concerned about the effect it is having on my marriage and the fact that HSBC may try to force the sale of the house (which they say is not what they want, but who would believe a bank!) which would render my 2 yr old son homeless.

I know it's highly unlikely that they would get an Order of Sale, but it has been known.

CLAPTON

responding to one creditor because they shout the loudest is not always wise. suppose you do pay them off them another of your creditors takes the same approach..you may then regret your actions.

it is better to look at your overall financial situation and look at what the best approach to all your debts.

IF 15k is available, then is paying HSBC the best use of that money?

Without seeing your SOA and knowing the equity in your property its not possible to know if its the best use of the money.

However, in general F&F settlements are best tried after you have been paying reduced amounts for a year or more, the debts have been defaulted and the debt is passed to a DCA.

HSBC may be happy just for the debt to be secured on your property for a time. There does seem to be a toughening of banks approach to debt management.