Final settlement rejected

Jason6713

After 6 years I have been contacted bt Shoosmiths PLC to pay £67500 for remaning debt from home being repossessed to Halifax. I contacted them filling out monthly expenditure forms which showed I had around £75 a month left. I made a one off offer of £6500 to settle the debt as a family member is willing to loan me money to settle this debt which I can pay back over a very long period. This was rejected by Shoosmiths and they have now put my account on hold for 30 days for me to come up with another way to settle the debt. i will never be able to pay the full amount, has anybody else dealt with this company for this amount ? I was thinking in 30 days off offering £10000 the most I can get is £12500 but I dont want to borrow that full amount if I can help it, advice please ?

sourcrates

My advise, don't borrow to satisfy this debt, go bankrupt, wipe the slate clean, are your figures correct ? £67500 outstanding ?

chanz4

I cant see them wiping 61k off, I can see them taking you court however or making you bankrupt

rizla_king

https://www.nationaldebtline.org/EW/factsheets/Pages/11%20EW%20Mortgage%20shortfalls/Page-03.aspx

The Financial Conduct Authority rules
Warning:
when do the FCA's MCOB rules apply?

Most first mortgages taken out on or after 31 October 2004 will be regulated by the FCA's MCOB rules. If you are unsure whether your mortgage is regulated, contact us for advice.

On 1 April 2013 the Financial Conduct Authority (FCA) took over the regulation of mortgage lending, and problems with existing mortgages.


The FCA’s Mortgages and Home Finance: Conduct of Business sourcebook (MCOB), says that a lender “must deal fairly with any customer who has a mortgage shortfall debt”. A lender does not have to recover a shortfall debt, but if they do, they must tell you in writing, within six years of the date your home was sold. If they don’t, you can complain to the Financial Ombudsman Service (FOS). See Useful contacts later in this fact sheet.

bennyhill_2

Just to confirm you've lost the house already? Is there anything stopping you from going bankrupt and walking away from the debt in real terms.

rizla_king

or use all the info in that link to demand a breakdown and challenge how it is made up if you can. maybe better template letter for a write off in that link as well.

They wont get any more from a CCJ or bankruptcy but some people love to scaremonger

Jason6713

The issue im worried about around bancruptcy is i have had the £12500 put into my bank account to settle my debt, obviously if I go bancrupt I will pay this back straight away but they would see the money has gone into my account and I dont want to be deemed to commit fraud. I would rather not go bancrupt but after having my first offer rejected Which I knew it would as it is so low I wondered how long it would go back and forth. Ive read some people saying that correspondence has gone on for over 12 months as the creditors will be in no rush. I rent a room in a house so im not worried about baliffs attending as nothing is mine, the property is all in a friend and her partner name. My property was reprocessed 6 years ago and I knew they would chase me for the debt. Can the creditors see your bank details ? As i have sent them a expenditure form but no statements

sourcrates

Hi,
You would not be committing fraud, sounds to me like the creditors have very few options here anyway, you have no property, no assets, etc., so there's very little they can do to you, worst case scenario, they go back to court, you submit your income/expenditure, the court sets a figure you can afford to pay, down side, you'll be paying it for a very long time.


I think Bankruptcy would end this nightmare for you, once and for all, give the 12k back to your family member, then write to the creditor asking them to write off the debt, as you have no realistic chance of ever paying it, if they say no, go Bankrupt, only other option is wait and see what they do.

NICHOLAS_2

I know someone going through something similar and he has a legal guy who deals with it doing various bits and bobs as well as other stuff. Apparently there are ways in which you can tie it up for many years, like the fact that they sell your home for a cheaper price than it is worth making the debt larger than it should be. There is no great rush to make you bankrupt, and it is not a certainty that they would make you bankrupt, this guy in particular has been exchanging with the mortgage companies legal team for about 4 years now after ignoring them pretty much for 2 years. Currently his legal guy has got them to put the account on hold for 12 months.

Voluntary bankruptcy is not always the right answer because things are often not as bad as they seem.

I am curoius as to why you are trying to settle though, if anything they will want to leave you alone if you can't pay them what they want, they'll sit in the long grass until you get an asset and put a charging order on it.