Writing off debt info? please

gazmon

Hi All,


I have a few questions regarding writing off debts, I will list below my info and would appreciate any feedback, please I apologise if these are questions that have been asked before.


I contacted a company who said they could write off some of my unsecured debts, I would like to know if my current situation qualifys and what the success factors is and any pitfalls that I may incur or problems


1) I do not wish to go bankrupt? is this a requirement
2)I have £31000 of unsecured debts and I pay into a DMP with Payplan that works fine and has been painless, some of these debts are more than 15 years old now
3)I have a mortgage for 90k and my house is worth 185000k
4) I have no mortgage arrears
5) I am in full time employment, I have children too


I am interested in seeing if there is a better solution to DMP etc


Can debts be written off?


Kind regards
Gazmom

rizla_king

No. Every possible option would include selling or re-mortgaging your house to pay off the debts in full.

sourcrates

gazmon wrote: »

Can debts be written off?
Kind regards
Gazmom

They are referring to an IVA (individual voluntary arrangement)


This is the next step down from Bankruptcy so deserves a lot of information gathering before committing yourself.


Some debt MAY be written off, its down to your own individual circumstances.


Google "IVA" there is lots of info, I would suggest getting some advice from one of the free debt charities before you do anything else.

sourcrates

gazmon wrote: »

2)I have £31000 of unsecured debts and I pay into a DMP with Payplan that works fine and has been painless, some of these debts are more than 15 years old now
Kind regards
Gazmom

One other possible solution may be to CCA the older debts, as its unlikely they will have the correct paperwork after 15 years.


Could either write off some of it,(unenforceable) or make it a lot easier to negotiate a small full and final settlement .

gazmon

Hi thanks for replys,

could someone explain the basic sort of problems an IVAs would bring to me

CCA is referring to me writing for my `signed` agreement which may have been lost yes? so unenforceable, my worry there is if they find it that may start legal action even if the debt is with payplan??

thanks
Again

sourcrates

gazmon wrote: »

Hi thanks for replys,

could someone explain the basic sort of problems an IVAs would bring to me

CCA is referring to me writing for my `signed` agreement which may have been lost yes? so unenforceable, my worry there is if they find it that may start legal action even if the debt is with payplan??

thanks
Again

Legal action very unlikely, basically if they cant produce a copy of your original agreement, they may have problems getting a CCJ against you, if the matter ever went to court, (unlikely)


It can be a complicated issue, but worth it from your point of view, creditors tend to shy away from debts that have paperwork issues, you may find they will drop it like a hot stone, or they may contest the fact.


Best thing is to do it and see what there response is, then take it from there.


Your other question about IVA`s, lots of info here :
http://www.adviceguide.org.uk/wales/debt_w/debt_help_with_debt_e/debt_individual_voluntary_arrangements.htm

gazmon

Thanks again,


Can anyone point me to the thread or info for the best letter to request my CCA etc or what I need to do regarding this area


thanks again


gazmon

National_Debtline

gazmon wrote: »

Hi thanks for replys,

could someone explain the basic sort of problems an IVAs would bring to me

thanks
Again

Hi gazmon

More thorough info in the link given by sourcrates above, but if I had to highlight one or two general drawbacks of an IVA they would be:

- it's a big commitment so not ideal for someone whose immediate future is unclear.

- it can't just be imposed on creditors as it can only go ahead if a majority of them give it the thumbs-up. So if you tried to make an IVA proposal that they weren't happy with, you'd get nowhere.

Regards

Dennis
@natdebtline

sourcrates

gazmon wrote: »

Thanks again,


Can anyone point me to the thread or info for the best letter to request my CCA etc or what I need to do regarding this area


thanks again


gazmon

Various template letter available here :


http://www.consumeractiongroup.co.uk/forum/showthread.php?20758#post162367

bargainbetty

By the way, I'd be interested to know who the company is. You cannot just 'write-off' debts, and the only ones who use this kind of language are usually the ones who charges fees for helping you do things that Stepchange and the other charities do for free.

Just be wary of signing up to anyone who charges a fee. Your best interests are unlikely to be their first consideration.

rizla_king

gazmon wrote: »

2)I have £31000 of unsecured debts and I pay into a DMP with Payplan that works fine and has been painless, some of these debts are more than 15 years old now
3)I have a mortgage for 90k and my house is worth 185000k
4) I have no mortgage arrears

You have £95,000 of equity and owe £31,000.

No creditors are going to agree to an IVA or any other kind of write off with that.