Emigrating and want to full and final settle my debts

buster2910

Hi I'm looking for some help and advice on full and final settlements.

I'm emigrating in the new year and want to settle my debts before i go, although I don't have the full amount hence why i'm posting this!!

My parents have offered to help a little and with a bit of money i have i wish to contact my creditors and get reduced settlements.

I owe around £37000 and should have a pot of £13000 to share between 4 creditors.

The debts are as follows:

2 unsecured loans, HSBC £11000 and Sainsburys £10000.
Credit cards Barclays £11000, HSBC £3000 and Virgin £3000.

I have no assets left here and although i'm currently working I will be handing my 3 month notice in January which is when I want to start the ball rolling in contacting my creditors and discuss my plans.

I've see on some posts it can be a long and drawn out task getting them to agree.

Should I go to PayPlan to do the process or is it better to do it myself?

If I do it myself, how long can I expect the process to be? and I know I have to get everything in writing with the creditors agreeing a full and final settlement and no 3rd party chasing me in my new planned country.

Also, what percentage could I expect to them agreeing?

I want to at least offer something back and be debt free or else it would be a last resort of bankruptcy as I can't see me be able to afford the payments as I have no job lined up as of yet so no income in the near future once I move away.

Can anyone help me with this? Does anyone have past experiences or tips how to handle the process?

Very much appreciate any advice.

thanks

MrsTinks

Firstly - have you already defaulted on the debts? Because unless you have then I can't see any of them agreeing to do full and final payments... I'll let you have a guess at how many people would LOVE to get full and finals on debts but without having ever defaulted...

Second - assuming you have defaulted - how long have you been in default, what are the monthly payments supposed to be and how much have you been paying? That will affect how mucht they are likely to agree to accept...

villarenter30

Think I'm right in saying that unless you are behind with payments they will not even consider it.....I may stand corrected but i am behind with payemnts and have tried with a few creditors - most will not budge unless you are behind and there is going to be no considerable change (for the better) in your circumstances in the forseeable future

RosaBernicia

Is your emigration already sorted? Your financial record may affect your visa.

Cody

I have £80k of debt (£40k from a personal gurnatee on a failed company). I wrote fnf letters to my main creditors for 30%, as per CCCS template. All refused expect HSBC, for a credit card with £10k on it.

I can not explain why they accepted, i have banked with HSBC for 20 years and have never been in difficulty before, so maybe they looked kindly on me? The £40k debt from my old company was also from HSBC but is now in hands of metropolitan, their debt recovery service, so maybe this was also a factor since they knew how close to bankruptcy I am, and wanted to secure cash now before I would make that decision.

I do now have token payments in place with each creditor, and reduced interest payments of 0 or 0.5%.

Not much help I am afraid. All I can say (and I am a novice) is to send FnF letters and see what happens, but generally companies will only do fnf deals if they believe the only alternative is either a very long pay back period (many, many years) or bankrutpcy (and no return).

Cody

PoorCharleyBear

the other thing to bear in mind is that emigrating is an expensive business.

You need transport to your destination.
Money for temp accommodation
Money for food/basics (as cupboards will be completely bare)
Cleaning stuff
Setting up utilities - often want deposit

Then...living expenses until you get a job.
So most folk recommend going to a new country with a reasonable amount of savings to keep your head above water.

aliasojo

Depending on where you are emigrating to, some places require you to prove you have sufficient funds to cover x amount of time in their country I believe. (Or it least that was the case a few years ago when we looked into it.)

(I realise that's not what your question was about btw.:) )

buster2910

I haven't defaulted on any payments yet and have always paid...seems like it could be a bad idea paying on time. I did enquire with Payplan and they did advise to keep up my minium payments!!??
I will be emigrating on a spousal visa as I have just got married and my new wife is now back home in her country of origin. Hopefully my financial position will not come into affect as much as if I was going alone. I have accommodation at the in-laws for the foreseeable future or until settled. I was planning on getting my Visa sorted before I went so hopefully would have some funds in the bank.

If i'm looking at going in May next year would you suggest I started to default on my payments for 3-4 months or maybe hand my notice in, in January then surely by March if I don't have a regular income i.e wages and only some savings then attempt the F&F.

What's your thought on this? really need help with this.

thanks

HappyMJ

buster2910 wrote: »

I haven't defaulted on any payments yet and have always paid...seems like it could be a bad idea paying on time. I did enquire with Payplan and they did advise to keep up my minium payments!!??
I will be immigrating on a spousal visa as I have just got married and my new wife is now back home in her country of origin. Hopefully my financial position will not come into affect as much as if I was going alone. I have accommodation at the in-laws for the foreseeable future or until settled. I was planning on getting my Visa sorted before I went so hopefully would have some funds in the bank.

If i'm looking at going in May next year would you suggest I started to default on my payments or maybe hand my notice in, in January the surely by March I will not have a regular income i.e wages and only some savings to attempt the F&F.

What's your thought on this? really need help with this unless once out of work here I go bankrupt then go?

I would just keep on paying the minimum repayments for now. They will not do F&F's if you are not in default. I wouldn't bother going BR. Once you leave and decide you are not going to return to the UK then you could choose to stop paying anyway and that will acheive the same as a BR.

buster2910

okay but I would to have defaulted for them to even consider F&F, how many defaults would this be as time is running out for me and I really need a solution. Obviously paying minium as I have been doing the amount isn't shifting one bit so I could be here for years!!
By the way i'm paying over £900 each month combined.

buster2910

HappyMJ wrote: »

I would just keep on paying the minimum repayments for now. They will not do F&F's if you are not in default. I wouldn't bother going BR. Once you leave and decide you are not going to return to the UK then you could choose to stop paying anyway and that will acheive the same as a BR.

I hoping I won't be return to the uk, obviously never say never. But if I choose to stop paying with technology this day and age they will sell the debt and then I have someone chasing me in my new country which I don't really want I want to resolve it if I can while I'm in the uk and go away with a clean slate. Would you say trying F&F is pointless too then at least I'm trying to offer something back.
At least if you're BR then the calls and chasing will stop?