full and final settlement offer

popeto

Hi everyone,
This is my first post having just joined your very informative forum!
Please can anyone give me any advice.....
I am attempting to do a full and final settlement offer on all of my credit card debits and my partner's (£83,000).
We are both self employed and have been for over 15years. We have been on a DMP arranged by ourselves with advice from step change (then cccs) for the last 2 years paying £5 p/m to each creditor.
A family member recently offered us £20,000 to attempt to clear some debits. Step change put us in touch with Grant Thornton to commence a lump sum IVA. Having read all about an lump sum IVA I was concerned with the company taking a % of the money I had for my debits as their commission. I looked on this site which talked about doing your own Full and final settlement. I have wrote letters to all mine and my partners creditors (13) explaining our situation and no hope of it changing or the household income increasing and included a income and expenditure sheet. I know I have to offer the lump sum on a pro rata basis so it equates to around 22% to each creditor.
My question is should I include a copy of all my creditors that shows the amounts owed to each and the amount I am offering them, or is this giving them too much information?
I would appreciate any info anyone can give me.
Many thanks

sourcrates

Hi,

Your not obliged to do that, however, they may look at your offer more favourably if you do so.
I would say, in this situation, the more information your creditors had about your situation, the more informed a decision they may make.

The objective is to make them realise that the offer you are making to them, would give them the best possible return, in the shortest possible time.

Make it crystal clear, that should your offer not be accepted, the next option for you may be Bankruptcy, from which they would not get anything.
Notice the wording, "may" be Bankruptcy, not "will" be Bankruptcy, including this sentence gives you that option, doesn't mean you have to go down that route, but your creditors don't know that.


May make them sit up and take notice.

popeto

Thank you for the info Sourcrates
Please can you advise...
I've read about marking your letter 'without prejudice' is this also advisable?

sourcrates

popeto wrote: »

Thank you for the info Sourcrates
Please can you advise...
I've read about marking your letter 'without prejudice' is this also advisable?

All that means is that you cant be held liable for anything in the letter, should it, at some point in the future, be used against you in court, so its debatable whether it would apply in this case, but including it certainly cant hurt.

traceydc49

Hi Sourcrates, (sorry to butt in on your thread popeto) would the same tactic ie saying I might have to go bankrupt, work on a creditor that has a CO on my property? I don't have the funds for complete payment, but I would like to try for a f&f, I'm desperate to get rid of this debt in particular, its for 4000 thank you Tracey

sourcrates

traceydc49 wrote: »

Hi Sourcrates, (sorry to butt in on your thread popeto) would the same tactic ie saying I might have to go bankrupt, work on a creditor that has a CO on my property? I don't have the funds for complete payment, but I would like to try for a f&f, I'm desperate to get rid of this debt in particular, its for 4000 thank you Tracey

If a creditor has a charging order, and say for arguments sake, you did go Bankrupt, the first charge would be your mortgage provider, if you have one, second charge would be any other secured loan on the property, then the charging order, it would be dependant on how much equity is in the property, and how much it sold for.


If there was a reasonable chance of the CO been paid out of the proceeds of the sale, then no, I doubt they would accept any less from you, if there was not much equity, then anything is possible.

Stewart_78

Popeto, might be an idea to list all of your card debts. How many have been sold on, how many are with the original lenders? Also, when were the accounts opened. Pre 2007? It may make a huge difference to your position. Also, how many accounts have been defaulted on your credit file and how many are showing as some sort of arrangement to pay?

popeto

Thank you Stewart,
7 out of the 13 debits have been sold on, leaving 6 with the original lenders. All accounts were opened pre 2007!
I have just applied to see my credit file but have to await a pin code via the post.

sourcrates

popeto wrote: »

Thank you Stewart,
7 out of the 13 debits have been sold on, leaving 6 with the original lenders. All accounts were opened pre 2007!
I have just applied to see my credit file but have to await a pin code via the post.

You should do as advised above first off, and CCA all relevant accounts, good chance some may not have them.

popeto

Please can you advise, I was unsure what CCA meant but having looked into it. does it simply mean I'm asking each credit card company if they have my original agreement?
Sorry in advance if I sound a little thick here but what difference does that make, if they don't have it what does that mean? Surly if I've used the card over the years I'm obliged to make an offer of payment and if not how do you go about perusing the CCA route. Is it a long process and can they still come after you in the future?
I really wanted to get this sorted asap so sent one letter (full and final settlement offer) to M&S offering them 20%(£1400) of the debit I owe them which is £5850 I had a reply today (within 7days)
The letter says.... Under the circumstances we will accept your offer of £1400 as partial settlement of the outstanding balance.
On receipt of the payment, we will close the account and notify the credit reference agencies that the defaulted amount is now partially settled. This information may affect future applications for credit.
Should I be celebrating and pay this or is the above statement not good enough as nowhere does it say they wont pursue the debit further/later.
Many thanks in advance for any reply's

fermi

CCA letter --> https://www.nationaldebtline.org/EW/factsheets/Pages/39%20EW%20Credit%20agreements%20-%20getting%20information/Page-04.aspx

Consequences --> https://www.nationaldebtline.org/EW/factsheets/Pages/39%20EW%20Credit%20agreements%20-%20getting%20information/Page-02.aspx#quicklink1

Does not necessarily remove any obligation to pay, but could mean that the creditor cannot use the courts to enforce payments. Should that be the case then obviously that tips the balance of power in any negotiates significantly your way.

In the end though it's something you can choose to have a look at, or not. Up to you.