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Reducing overall amounts?

Facethemusic_2
Facethemusic_2 Posts: 2 Newbie
edited 6 August 2014 at 12:21AM in Debt-free wannabe
Hi

I hope everyone is in the mood for a strange tale...

I crumbled under debt pressure a long time ago, six years in fact. Instead of facing it, I ran away to a new life in the sun. Strangely t worked, except it doesn't, my apartment was repossessed bills have built up, accounts have been closed and your ability to operate as a normal member of the human race slowly gets taken away. As a cautionary tale, don't do it, I ended up crashing on friends' sofas and paradise didn't look so sweet anymore.

Anyway, I am back, family members have been great and I'm about to get into the renting somewhere and facing this stuff. It's mad, I don't even know how much I owe just yet, though I'm sure it's going to be a sobering experience.

The obvious solution is bankruptcy, but now I am back I am picking up work hand over fist and had a thought. Is there ever a chance to negotiate a lower sum? To strip all the daft interest and charges and just agree a lower amount than what they want?

I know about F&F, abut I'm not talking about that, I'm talking about just hardballing them and knocking the figure down. I guess you'd call it an informal IVA. Can I suggest bankruptcy is the other option and actually make it work?

Can it be done? If so, bankruptcy might not be necessary and this might be the better way if I can really keep picking up work.

My gut feeling is that the debts will work out about 45-50K. My other thought is that I could start on a DMP and then go after each one with F&F and pay back 25-30 in total. Once you start on a DMP, does that reduce the likelihood of them taking F&F settlements?

Comments

  • moohound
    moohound Posts: 1,209 Forumite
    Debt-free and Proud!
    Would any debts be stature barred by now anyway?
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  • I know about F&F, but I'm not talking about that, I'm talking about just hard-balling them and knocking the figure down.

    How are they any different from each other :huh:
  • If were you I'd obtain your full credit report to which will list all of the debts that you currently owe. The ones that show up on your credit file are the ones you should attempt to repay. You will find that once youve accessed your report a number of these debts are not showing - this will be because they disappear from your credit file after 6 years - these debts become statute barred and it would be wise to not contact these companies as you may be setting up a payment plan for no reason costing you more money. Th only way to deal with this is to find out from Experian or Equifax - look at both as they both offer free monthly trials and then cancel. The debts will show and you can contact each one individually and work out a plan. If these debts are more than 6 years old old and youve made no contact I can almost guarantee they will have dropped off your credit file by now. If there only 5 years old etc it may be worthwhile keeping a low profile for the next 12 months :)
  • Thanks for the advice! I actually think one or two of them might be about the five year point now. My plan was to go for statute barred and if I could have stayed overseas for a while longer then I probably would have.

    F&F and knocking them down are different because I won't have a lump sum for the F&F, I meant knocking them down for the final amount on a payment plan.

    Thanks for the input!
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