Full & Final Offers

sjx1407

Ahh I understand. Even partially satisfied would be better than bankrupt.

So, in terms of the process...

Should I default altogether and pay nothing?

Should I pay a nominal sum each month?

Should I write in advance with a full letter explaining circumstances complete with a SOA?

I have applied for a new bank account today which I will get my income paid into, but am totally unsure as to the best way to default - as in, the most likely to get to the point of negotiation.

I understand each payment is an acknowledgement of the debt. As such, the debt collectors may not be as willing to negotiate knowing payments are continuous and the pressure of the statute bar status isn't there?

I don't want it statute barred, but again, I don't want to be 2 years down the line trying to negotiate and getting nowhere near a figure I can afford.

Are you able to advise on the above? This is the bit I'm stuck on now...

forgotmyname

Bankruptcy lingers on with the potential to bite you later. But sometimes thats the only option.

If your paying at least the minimum amount and have not yet trashed your credit file them i wouldnt expect them to offer you much at all.

Even if you stopped paying them all today it would take time to filter down to a level where a F&F would be beneficial to them.

If you had nothing and had lost your job and realistically there is not a penny in it for them, then a reduced offer maybe on the table. But they can sit on it for 6 years to see if your circumstances change.

Been there got the T-Shirt. And fake missed parcel deliveries and dodgy phone calls and emails affering expensive items very cheaply to see if i would bite.

Silly debt collectors had registered the website to one of their workers. I may have had no money back then but it didnt make me instantly stupid.

A little forever and ever is better than nothing in their eyes i guess?

skintandfat

sjx1407 wrote: »

Ahh I understand. Even partially satisfied would be better than bankrupt.

So, in terms of the process...

Should I default altogether and pay nothing?
Yes - Only a default starts the 6 year clock running- if you do not have a default then it will be on the file for years to come PLUS 6 after any default

Should I pay a nominal sum each month?
YES
Pay a token payment of £1.00 per month

Should I write in advance with a full letter explaining circumstances complete with a SOA?
Call them- make sure you have a phone that records calls (many android ones do, an app is free - or £6 for one that uploads calls to dropbox, you can try app to see if it works with your phone)

I have applied for a new bank account today which I will get my income paid into, but am totally unsure as to the best way to default - as in, the most likely to get to the point of negotiation.
They usually sent a default notice asking you to pay by a set date, if you do not then a default is placed

I understand each payment is an acknowledgement of the debt. As such, the debt collectors may not be as willing to negotiate knowing payments are continuous and the pressure of the statute bar status isn't there?
Once the clock is ticking the further down the read you get the better the deals are for you.

I don't want it statute barred, but again, I don't want to be 2 years down the line trying to negotiate and getting nowhere near a figure I can afford.

Are you able to advise on the above? This is the bit I'm stuck on now...

My tuppence worth - from personal experience


I went BR in 2011 and my other half did not


Her cards and defaults are off her credit file now, the file is looking good now.
We are paying £1 per month


ONLY a court or the insolvency service can REQUIRE you to produce a statement of affairs.
You can produce one and you put what you feel is accurate in it.


Do an 'ideal' SOA and see what you have left-

• do you have any pets -is there an allowance for vet bills
• Your food seems cheap- it should be higher at £220 per month
• Do you have hair cuts- more than £10 (say £35)
• As others have said- include insurance (say £35)
• Internet can add £15 to the phone bill
• Car maintenance should be higher (say £40)

Remember nobody is going to look to see if you have a dog etc.


The above has added £200 to your expenses.


I keep all my SOA on a spread sheet and have a shortfall- they can not see your income either so you can 'earn' less than you do- is there an overtime ban at work?

When I go through my SOA they ask why I am getting on as I have a £200+ per month shortfall, my answer is that I have family who help out (my son gets DLA and it is not counted as he is 21 and his money)

They can ask you to send proof- I have been asked but have refused as I have stated only a court can require me and if they wish to take me to court to require me to provide one they can.

Going to the call recording- I have a decent Android phone and it has an SD card and a call recording app.
I make a point of telling collection agencies that I am recording the call at the start of the call and it puts them on their best behaviour.

I had one in Glasgow (AIB) refusing to deal in writing (as per my request) and only wanting to deal on the phone.
Once I had confirmed the call recording I was transferred to the 'person dealing with my account' and they were SUPER NICE and told me they cared and wished me a good day when I was paying £1.00 a month to a £13800 debt.

What I am saying is - TAKE CONTROL and don't let these people bully you. Once they know you are not a push over and are keeping evidence they will act nice and go on to the next victim.


We are now at he 7 year mark and they have offered 50% off, I asked for 70% off and they refused, start at 30% of the balance due and stay below 50% of the due balance


You are virtually bullet proof and you can avoid bankruptcy if you take control- remember you rent and have no assets so they are very unlikely to take you to court.


Good luck

sourcrates

sjx1407 wrote: »

Ahh I understand. Even partially satisfied would be better than bankrupt.

So, in terms of the process...

Should I default altogether and pay nothing?

Should I pay a nominal sum each month?
Are you able to advise on the above? This is the bit I'm stuck on now...

Its Difficult to say, but non payment usually leads to a quicker default.
Debt collection in reality, can be quite a long, drawn out process, people have this idea, that if they miss one payment, they'll be in-front of the beak in a weeks time, nothing could be further from the truth, its a long process, and they always go for the easiest targets, ie, the ones who pay up without a fight.

In order to get the settlements you desire, you'd have to wait years in my opinion, it depends if your happy doing that, or not.

My choice would be to re-visit your budget, make the figures more realistic, in doing so you may be suitable for a debt relief order, you must have £50 or less left, per month, after all essential bills (not inc debt repayments) are paid.

https://www.stepchange.org/Howwecanhelpyou/DRODebtrelieforder.aspx?WT.srch=1&WT.mc_id=288026&WT.seg_1=dro&gclid=CKb-j5uL2NECFUHhGwod3ssFUg