One Off Discounted Sum?

gratton20

Hi

As many of you will know I went BR in Sept this year. All has gone well, but one slight problem with one creditor, our bank account was overdrawn by £800 at BR and it was a joint account and the bank are chasing my wife for the money, as of course they are allowed to do. They still address the letters to both of us though. She has no income except child benefit and weekly carers allowance for looking after me. (I assume my income cannot be counted when they see if she can pay as my (benefits only) income is BR)

We got a letter today saying -

{Start Quote} "I'm prepared to offer you the chance to settle the debt by paying a one off discounted sum. We will close the account on receipt of this payment and no further action will be taken. You will not be required to pay back the remaining balance and we will record this debt as partially satisfied with credit reference agencies.

The offer remains open for 7 days only after which we will withdraw it unconditionally without further reference to you." {End Quote}

It gives a freephone number to ring and the letter has "Without prejudice" in big letters at the top

What do you "brainy" people think? Should she offer some money? should she call, they have not said how much they want, what should she offer, it is possible she could raise some money by borrowing from a relative or we could get a social fund budgeting loan.

Is it really a sensible idea though? It would get shot of the debt hanging round her (and in practical terms - our) neck at one swoop or should she just carry on telling them she has no income and can afford no payments. Any advice appreciated.

Peter_Pan

Hi gratton20

My OH is going bancrupt tomorrow and we have a joint account with overdraft and i am also only in receipt of CHB and OH WFTC/CTC which is payable to me so i am going to try and negotiate with them (i'm fortunate my parents are able to offer a sum to offer 50% of the debt), will see what happens. The only alternative would be for me to go bancrupt as well and then they wouldn't get anything.

Good luck and do let us know what happens, i know personally i would rather settle if they will accept the lump sum and avoid having phone calls and letters to deal with - lifes stressful enough

fiveyearplan

I have no experience of this but I would offer 50% if you can come up with that much but then that would mean the account is SETTLED not partially settled.

seven2seven

Yes , I think the main point is that they are open to negotiation and it does no harm to see what they have to say.

Let them tell you how much they want , then make sure you offer a much lower amount. If they ask for £600 then I would say you can manage to scrape together £200 as a final offer. You may eventually have to settle on £400 which I think would be reasonable. The main point is though , as fiveyearplan says , is you need in writing that the debt is then SETTLED.

Good Luck.

gratton20

Thanks for the replies so far. I think £200 is the top we MIGHT be able to scrape together anyway. Going on what I have been told, if they sell the debt on they will get 10-15% tops so offering 20% - £160 - £200 ish ... but it is still dependent on us being able to borrow the money anyway. Oh yes we would INSIST on written agreement that its finished too, not that dim LOL