Settling a £30k debt with Sainsbury's

Tixy

Nc016163 wrote: »

My questions are has anyone done a "Full and final" settlement with Sainsbury's for 30% of an outstanding balance?

Usually reduced F&Fs of that sort of % are only offered once a debt has been sold on to a debt collection agency for some time. I cannot recall seeing any instances of sainsbury's accepting anything close to that whilst they still own the debt.

Nc016163 wrote: »

Are they likely to say OK we will take the 10k but you still need to pay x amount a month? as the family member will not give me the money on that basis, they want to help me move on.

Full & final settlements are based on what is negotiated and agreed between the 2 parties and should always be done in writing. So you would need to put in any letter that the money is being offered by a relative only on the condition that it clears the debt in full.

But it would be worth you getting some advice from one of the debt advice charities about your options including bankruptcy, especially if you are not a property owner.

forgotmyname

Tixy wrote: »

Usually reduced F&Fs of that sort of % are only offered once a debt has been sold on to a debt collection agency for some time. I cannot recall seeing any instances of sainsbury's accepting anything close to that whilst they still own the debt.



Full & final settlements are based on what is negotiated and agreed between the 2 parties and should always be done in writing. So you would need to put in any letter that the money is being offered by a relative only on the condition that it clears the debt in full.

But it would be worth you getting some advice from one of the debt advice charities about your options including bankruptcy, especially if you are not a property owner.

When i had issues a few years back thats what i waited for. Waited for the debts to get sold onto a collection agency.

The issue is that your still working and able to keep paying them something. Why would they accept £10k when eventually you will pay them £20k+

I was not working so no point in them taking any further action against me, No assets and no money would mean they were just throwing good money away if they went through the courts.

Nc016163

Thanks for all the speedy replies.

The loan was originally an unsecured £25k loan, used to consolidate several debts from the past 10 years or so. I lost my job about 4 months after taking it out, when I was earning around 40k a year, now I receive around 2.5k in tax credits due to my business only bringing in around that itself.

I am a homeowner, but I am leaving the country in 6-8 weeks and will either rent it out (which will only cover the mortgage) or sell it. But am nervous about selling it incase when I leave the country I want to come back - plus the equity in the house is only about 18k so will not cover this loan anyway.

Sainsbury still own the debt although they recently threatened to hand it over.

Pixie5740

Have you asked your mortgage lender for consent to let? Can you afford to service the mortgage debt during a rental void or if the tenant falls into arrears?

There is some useful information for new landlords over on the House Buying, Selling and Renting board which you should read before letting out the property. Get your LL responsibilities wrong and you could end up with thousands of pounds of fines, charges and fees.