Full and final settlement question

Learning2Budget

Currently on a dmp with stepchange. I have paid off 35k and have just over 8k left to pay, ending july 2018. My marriage has broken down and i have been offered 5k from a friend to pay off dmp so i can sort the mortgage into my name. Do you think that they would accept 5k? In view of the fact that the dmp payments would reduce....he's (him being my husband) not in a position to pay anything as he's on benefits. So i would have to reduce down my payments over another 3 years. Been on the dmp since 2008.
Any advice would be gratefully received. L2B.x

sourcrates

Hi,

You would need to do a little bit of negoatiating with your creditors, work out a figure for each one, that the 5k would clear, then put the offer to them.

You have more chance of it been accepted if your accounts are all old, and been sold on to debt collectors as they will of paid next to nothing for the accounts.

DrWatson1

I think the reality is that if I were a creditor, I would refuse. They can either get £8k over 18 months, or £5k now - which would you chose? As you have already paid £27k, they will probably assume you are good for the remaining £8k.

If you want a better chance of this being accepted, reduce your payments to token (£1p/m) payments, and write a letter saying your marriage has broken down and you can no longer afford the payments. Then write to them in 6 months offering F&F settlement.

Learning2Budget

But they won't get 8k in 18months. I am not in a position to pay it. I have had a one off offer of 5k to settle the dmp. The dmp has been running for 9 years.
Due to my marriage breaking down i will have to extend the term to probably another 4 years. It has dropped off my credit profile and the debts have been sold on, twice in some cases. That's why I thought it may be possible.
Thanks Sourcrates will look at splitting the amount down.x

sourcrates

Learning2Budget wrote: »

It has dropped off my credit profile and the debts have been sold on, twice in some cases. That's why I thought it may be possible.
Thanks Sourcrates will look at splitting the amount down.x

In that case the odds are in your favour.

Debt collectors love cash settlements, it should be easily do able.

Learning2Budget

So stepchange said i need to ring creditors for full account balances. Then they will review my budget then go from there. So it is on my to do list for Wednesday. Thanks Sourcrates for the advise. L2B.x

January2015

Offer less than the £5k to start with - say £2.5k for all debts and then you can bargain upwards if necessary to the £5k.

Learning2Budget

So i have rung the creditors. Half the debt is in my name and half in his. So need to ring stepchange and update. We have 5k offered by a friend. Do i offer 2.5k in my name and offer 2.5k in his? He will be unable to pay his back. So am sure they will accept from him. My payments to stepchange would vastly reduce so hoping they will accept 2.5k to clear 5.8k of debt. Any suggestions?

MrsTinks

If half the debt is in his name and you're divorcing then why are you not splitting the DMPs? Why would you borrow £5k of a friend to pay debts that are not yours?? His debts won't have any impact on your potential to get a mortgage going forward as you will be stopping all joint debts and financial products with him?

National_Debtline

MrsTinks wrote: »

If half the debt is in his name and you're divorcing then why are you not splitting the DMPs? Why would you borrow £5k of a friend to pay debts that are not yours?? His debts won't have any impact on your potential to get a mortgage going forward as you will be stopping all joint debts and financial products with him?

MrsTinks makes some good points. If you are only personally liable for around £4k you only need to make settlement offers on those debts. You don’t need to settle your husband’s debts too, that’s his responsibility to deal with.

James
@natdebtline

Learning2Budget

We can't split the dmp whilst living at the same address. He can't leave until i give him a lump sum out the mortgage. I can't release that till dmp is paid