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Welcome Finance

Welcome Finance are in administration and I owe them about 6000.

What happens to my debt if the company ceases to exist? Surely if they can't repay their creditors they will have to fold?

Does anyone understand how this all works?

Thank you. :)

Comments

  • Tixy
    Tixy Posts: 31,455 Forumite
    Your debt will be bought by someone else (at a reduced price) and you will them owe them instead - and you will still owe the full amount.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • Oh, I hadn't thought of that. :(

    Thanks for the quick response though. :T
  • Tixy
    Tixy Posts: 31,455 Forumite
    If it is ever sold on, then it would make it more likely that the new owner would accept a reduced full & final lump sum settlement - if you were ever in a position to offer one.
    In fact if you were in that position now you might find welcome would agree to a reduced offer - if you do ever consider it have a read of this and the template letter - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
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