Very large debt help

Hariba

thanks everyone. My intention is not to avoid paying the debt or hide assets. I’m willing to pay a lump sum (smallish) and start monthly payments. My issue is not losing the house. Because although it’s in my name, it’s my partner that has paid the mortgage through income. So it seems unfair if it’s at risk. I wouldn’t be defaulting on payments to put it at risk. The problem is because the debt is so big, I don’t think the creditor will accept monthly payments of £100 - which then puts the house at risk. 

I’ve spoken to the CAB again and they have now advised offering a full and final settlement. However, they said it would need to be 75% of the value which of course I don’t have. 

fatbelly

Most credit-type debts can be settled by full & final settlement and there's no fixed percentage - it's done by negotiation. That figure was just plucked from the air.

Hariba

Can anyone advise on how to do a full and final settlement? Do I negotiate this myself with them directly or do I need professional help to do it? Even so, I’d probably only be able to raise around a third of it. 

fatbelly

Ideally you'd want to have them backed into a corner before offering settlement. I personally think you're too early to be considering it. They need to be thinking their case isn't cast-iron and/or they're never going to get fully paid in a reasonable timescale. If you get to that point, you could use the National Debtline standard letter.

If you end up getting professional help, that's one tool they may use

Hariba

fatbelly said:

Ideally you'd want to have them backed into a corner before offering settlement. I personally think you're too early to be considering it. They need to be thinking their case isn't cast-iron and/or they're never going to get fully paid in a reasonable timescale. If you get to that point, you could use the National Debtline standard letter.

If you end up getting professional help, that's one tool they may use

How can I back them into a corner? It’s me that backed into a corner with a debt I can’t afford to pay off. How can they use professional help as a tool? Is that not a good idea? I just really don’t know how to go forward with this and I’m so scared of losing our home due to not being able to meet the monthly payments I think they will want. Or they may even ask for it in full. In which case I’ve no chance. 

Sea_Shell

It scary that oversights with insurance can lead to situations like this.

You think that the worst that can happen is they throw your claim out,  and you're on the hook for the damage costs, not then to pursue you for costs and fees too!

They must have got a fair way through dealing with the claim, before changing their mind.

enthusiasticsaver

I don't see how you  can change the names on the house without the agreement of the mortgage holders so your partner would have to be able to support the mortgage on her salary alone if you have no income. You cannot have the house in your partners name and the mortgage in yours so it is not as simple as just taking your name off the deeds. 

You presumably have gone through the ombardsman process to  contest the insurance companies claim?  They cannot get blood out of a stone so you can investigate with your mortgage holder whether it is possible to transfer mortgage over to your partner and then see a solicitor about change of ownership.  It is not a quick process though and if they decide to make you bankrupt they would have to go to court first.  How much equity is in the house? 

Hariba

Yes I’ve been to the ombudsman and they’ve been useless. They didn’t even acknowledge half of the issue which is for all the extortionate costs.  I know I can’t have the house in my name and the mortgage in hers. I was wanting to let her take over it completely as she is the one paying it anyway. She’s have no problem affording it. There’s enough equity in the house for them to want to put a charging order on it. But it seems unfair to me as I’m not the one that’s paid the mortgage on it. 

Sea_Shell

Have you been able to get new insurance ok, or is your current policy still running (not voided and cancelled)?

Hariba

It’s voided and cancelled and no we are currently not insured as the quotes I was getting were 1k plus