Full and Final Settlement - Personal Guarantee

Solidcitizen

Can anyone advise? About ten years ago I signed a personal guarantee for £50000 for a bank loan for a business which folded.The bank (HSBC) have been accepting £60 a month since then as I was in (and still am) in difficult circumstances. I have never missed a payment and they contacted me recently to see if I can increase it. I offered a small increase to be helpful. I have just received a letter saying the offer is unacceptable and the debt has been passed to a debt collection agency. I cannot pay the amount off but I am concerned that since the amount I owe is large (not the £2k credit card debt that many claim to have been able to get 50% settlements from) that I will be pursued aggressively. Does anyone have any similar experiences and can advise? I have no intention of declaring myself bankrupt or entering into a life ending IVA or DMP. Your help would be appreciated. Thank you in advance.

happy_bunny_2

I'm no expert but what's he balance, are they adding interest? Do HSBC still own he debt?

May better help someone offering advice

fermi

Do you think you are you ever going to be able to offer an increased amount per month that will allow you pay it off in a realistic timescale?

Or is £60 per month or a bit more on a £50,000 debt all you are ever likely to be able to afford?

Do you have property/equity etc?

If for all practical purposes you are never going to be able to pay this off, then I suppose they may negotiate. Debt collectors may be more likely to do a deal as well, but the amount is very large.

Have they passed it to their internal collections department Metropolitan Collections Services (MCS) (who like to pretend they are separate)? Or has it gone to a real external debt collector?