Advice on Full & Final Settlement to creditors

danno_4

Toto wrote: »

Anyone who profits from the misery of others is a shark in my book. So you offer an IVA, good for you, but please don't ask me to think of you as some kind of hero. There are free charities to help people who administer DMPs for free, would you do that for free if the client didn't want your IVA?

TOTO.
Please read my thread,i never mention IVA'S,read my other threads i stay clear of them.let me add people who are involved helping people in debt do not get anything out of IVA'S it is the insolvency practitioner who makes the money.Please read my thread properly.
regards
jaws

lonely_2

It really annoys me that some people put DMPs on a pedestal, but anyone who dares mention IVAs gets spat on! If you are insolvent, e.g. you have more money going out than coming in, after you have budgeted, then there is absolutely no reason to do a DMP for the rest of your life. Yes, you pay for an IVA but the cost are taken into account from your budget - i.e. some of the money that would be going to creditors on your DMP will pay for the IVA costs. Plus an IVA lasts for five years, occassionally six. You won't get the hassle you get on a DMP, it would be illegal, and the charges and interest are automatically stopped. In terms of your credit rating, both IVA and DMP notices stay on your file for 6 years, so there is virtually no difference in that respect. So, Toto, if you have no assets and have nothing to lose, why choose an 8 year misery-ridden DMP when you could be rid of your debts in less time with an IVA or bankruptcy?

sallyjo_2

Hi k993802
Re Full and Final, my advice would be to try it. You have nothing to lose by asking, and it might not be a bad idea to say that you are considering bankruptcy -- You have no assets now and it is worth a try to see if they'll take the cash, because their alternative would be a lot less than that if you went bankrupt.
I know next to nothing about bankruptcy, but I'll bet if they knew you were going to apply for it if your full and final offer wasn't accepted, they'd jump at it. It is honourable for you to want to attempt to pay them back something.
For what its worth, if I didn't have my home, I'd go bankrupt tomorrow. I'm not proud of being in debt and not proud of not being able to pay what I thought I could when I took out the debt, however none of these companies are hurting, quite the contrary, their profits are massive and they are hurting me! I would have no problem going bankrupt on the whole lot of the vultures!

Jase

Recently I approached my creditors and asked re settlements full and final so as a guideline for you this is what they offered:

Abbey - £2000 - going through Wescot - they offered £1100

Northern Rock £15,000 - they accepted £10,000

Barclaycard - £8500, they offered £4400

Co-Op Crefit Card - £8500 going through Equidebt - they offered £4500

Start your offer low, send in a statement of account to them and best of luck

joolz43

Why don't you pick out your highest debts, and those you still pay interest on and write to the companies to ask the question. You can then decide which debts to settle and then throw increased payments at the rest.

k993802

Hey thanks to everyone for your input!

Jase, your post is really interesting, I still find it hard to believe that banks will accept a lesser amount than the debt, but logically I suppose it can make better business sense for them.

joolz43, I think thats exactly what I'm going to try - clear the biggies first.

Thanks for your replies!

k993802

Good afternoon all, I've just received a call from RBS offering to knock £5k off the total owed to them if I settle now.

Is this normal? The creditor actually bluntly offering to accept a lower amount in order to settle?

Its a funny old world!

borderlakland

i had debts of almost £8000 was on dmp with cccs. was in posisiton to make limited final setlements,took advise given on offers from cccs(v v helpful) most accepted btween 60 & 70% of loan only 1(littlewoods cataloge) wouldnt budge most seem to think a lump sum even if lower than the debt is better than say £5 a month for years &years hope this shows it is quite easy to do and if you don't ask you haven't got a hope of getting a reduction

Jase

here, here, I agree totally, I know it sounds daft knocking £5k what they owe but because they is so much bad debt about the banks will take what they can get and run - you might disappear to Australia tomorrow and they will be left with nothing!! Start your offer low and work up till you both agree - also dont play into their hands make an offer and if it is refused walk away - i had 2 creditors who came back on the phone within 30 mins to say if I offered a little bit more they would accept - I offered £1000 on a £2k debt, they wanted £1650. I said no - within 30 mins they called to say £1100 and its a deal.

borderlakland

well said jase. you've got nothing to lose by trying.if they don't accept at first just say ok fine i'll go back to paying you amount previously agreed(in m y case £5/mnth)couple said they would check with someone higher up & get back to me, then agreed or asked for a bit more. you can haggle it does work. just be polite but firm.if you come to an agreement ask for written proof after payment that you have paid & it is accepted as a full & final settlement.then keep it just to be on the safe side.debts that have been sold on seem to be easier & quicker to settle than those still with origional creditor but they will still agree(A&L agreed jst over £750 on a debt on current account od by £1300)