Full and Final Settlements

Whatnodosh?

Hi everyone.

I have not been on here to ask for help in a long while but always looked in. I have had my DMP with CCCS for approx 6 years now and have brought my debt down to just over 12k from 25k. This is my problem now that I hope someone can answer for me: I was made redundant in April and had some money from the company, I have offered to pay all 3 creditors in F&F settlement with 6k. I am unemployed and can no longer afford the amount I was paying before but have asked that the minimum of £15 be taken each month to distribute between them to show willing.

I have today received a letter back from Barclaycard stating that it is not their policy to accept less than the full balance.

I am in a quandry because I cannot claim housing benefit because of the amount I received and cannot use it up to pay off my debts or the government will say I 'wasted' it' when I should have used it for living expenses.

Should I just call them and tell them that it is a 3rd party loan for that purpose only and that they will receive no money from me in future?

Any help gratefully received.

Whatnodosh?

Hi Guys

Any help out there please???

awayinchina

Why not try F&F with the other 2 creditors and that puts those two debts to bed but say you only have x amount.
Should those creditors accept then use the money you save in not paying them every month to reduce the barclay's debt faster?
start your offers for F&F at around 25% and work up to what your maximum would be. You might find you will not pay as much as you think to settle the accounts. I have settled fro between 18-30% for most some wont move from 50% of whats remaining.

good luck

fatbelly

Whatnodosh? wrote: »

I am in a quandry because I cannot claim housing benefit because of the amount I received and cannot use it up to pay off my debts or the government will say I 'wasted' it' when I should have used it for living expenses.

If you get back into employment then obviously these rules do not apply and so that may be the time to try F&F. Until then, you are under the rules of capital and deliberate deprivation of capital.

You can get some HB with up to 16k capital. Above that, nothing. It is not deliberate deprivation to pay a debt if you have to pay it. But if you're making payments in the knowledge that HB will increase then they can assess you as having 'notional capital' which may eventually get to the point where you have no money left but HB are refusing to pay. So be careful!

bargainbetty

Write to all the creditors explaining that you have been made redundant, and until you can obtain benefits you must reduce your payments to a token £1 per month.

Then use the money to pay your living expenses. I'm sorry, but the benefits system is there to provide support to those who do not have the means to support themselves (I know, people cheat). If you have several thousand pounds, use it up paying for yourself until the benefits kick in. Put your applications in now, and as your savings decrease, notify the benefits office regularly. When you get to one month of expenses left, go all out for everything you can claim, don't wait till it's all gone to raise your head.

When you get a job again, start the payments back up and save towards a settlement. It's not really fair to use the money to clear your debts then ask the state to support you, is it? This is why the deprivation of capital rules apply.

Whatnodosh?

Hi

Thanks for the replies. I was not intending to try to live off the state as I do have a few thousand pounds and I have not even asked for any help. I am quite prepared to live off of that but also I do have some means to pay the creditors off to a certain extent. I have offered to all 3 and only 1 reply so far. Looks like if they all disagree then I am looking at the token payment option. and no its not fair for me to use my money and then ask for help (and I will not do this) but it does make my blood boil a little when I have worked from school and I know people who have not worked a day in their life (not thru anything other than they are better off on the dole/laziness) and my taxes along with others have been helping them on their merry way!!! Still I will see what the other creditors say. Thanks again

fatbelly

Whatnodosh? wrote: »

I am in a quandry because I cannot claim housing benefit because of the amount I received and cannot use it up to pay off my debts or the government will say I 'wasted' it' when I should have used it for living expenses.

Any help gratefully received.

If you're now saying you could claim HB, then you should. It is not the spirit of moneysavingexpert to turn down money that you are entitled to.

Whatnodosh?

thanks fatbelly, I have this evening secured 2 payments as partial payments for 2 creditors with no 'come backs' later on. I owed just over 12k and set aside 6k to settle these. I am a single parent of 2 and private rent. My outgoings before any food/car etc is £1100. I received 25k from employers but it was done on a 4 month basis as they could not afford to pay us off in one payment!! I have been paying my way since end April 2012 and after these 2 been paid off and hopefully the 3rd, it will leave me with approx 13k. I have decided to pay these debts off as I doubt I will get a job with the salary I was on before and therefore will not be able to pay them as before. I am willing to take any full time job that pays and to be debt free (or similar) would be a god send as most on here would agree. I see a light at the end of the tunnel, and for once it is not a train coming the other way!!! x

bpatterson72

Hi All. I wonder if anyone had any experience with Blair Oliver Scott? I (and my wife) had appprox £80,000 of unsecured debt with various different loan / card companies. Over the last 4 years I have managed to do 'full and final' deals with most of them. This has been at between 15% - 50% of the existing balance owing. I have been in a £1pcm token arrangement with Blair Oliver Scott for 4 years but they will not take any less than 75%. I owe them about £40,000 and this is now our total debts. I have now stopped the £1 pcm payments in the hope that the debt is 'sold on' and I have a better chance of dealing with the next DCA. Do you think these are sound tactics?

Any help would be appreciated!

P.S I should say that we don't own our own home and the funds are coming from my mother. I have been studying for a job in the legal sector that would not allow me to go bankrupt.

fatbelly

bpatterson72 wrote: »

Hi All. I wonder if anyone had any experience with Blair Oliver Scott? I (and my wife) had appprox £80,000 of unsecured debt with various different loan / card companies. Over the last 4 years I have managed to do 'full and final' deals with most of them. This has been at between 15% - 50% of the existing balance owing. I have been in a £1pcm token arrangement with Blair Oliver Scott for 4 years but they will not take any less than 75%. I owe them about £40,000 and this is now our total debts. I have now stopped the £1 pcm payments in the hope that the debt is 'sold on' and I have a better chance of dealing with the next DCA. Do you think these are sound tactics?

Any help would be appreciated!

P.S I should say that we don't own our own home and the funds are coming from my mother. I have been studying for a job in the legal sector that would not allow me to go bankrupt.

Needs to be a new thread really, and maybe one of the board guides will move this. The HBOS group often play hardball on this and stick at 75%.

Personally I'd continue with the £1 and the nagging to accept a lower offer.

1. It probably costs them more that £1 to process your payments so if anything it increases the likelihood of it being sold on.

2. You can keep making the point about it taking X years to clear at this rate.

3. It makes you appear to be being reasonable and communicative.