Unsecured Debt and Selling a property

ylesia

Hi

I wasn't sure where to post this so hope this is in the right place.

Long story short - my Mum ran up around £35000 in unsecured debt, entered DMP with CCCS in 2005 and is ongoing but very unrealistic payments (£90 total a month)

None of the creditors have given us any hassle at all over the last 7 years. None have taken any court action or even threatened it.

My Dad passed away earlier this month and Mum is now living with us but we don't have enough room to do this long term. We are probably going to end up selling their house but in order for Mum to continue living with us we would need to extend and create a "granny" flat, which will probably cost at least £40,000.

Dad left his half of the house to me, the house will probably sell for around £70,000.

Does anyone know what the CCCS will advise us to do in this situation? Can we still make full and final settlement offers, so my Mum is able to contribute in someway to the cost of the extension (she wants too more than anything else)?

All opinions and thoughts welcome

Thanks

National_Debtline

Hello there. If you will have a lump-sum available then a full and final settlement could be a great option. We have seen creditors offer some really decent discounts. You should always ensure that negotiations of this nature are in writing. CCCS should be able to offer further advice and support. Good luck!

Tixy

Yes if she's been in a DMP for that long (and only paying that small amount) I'd imgine she get some very low settlements - certainly should be a lot less than the full amount, could easily be half the balance or even less.

See what CCCS advise - but there is also the option she could make/negotiate individual F&F offers herself if she wanted.