Car Finance charging order against my property, will they take an offer to short settle.

Iansellers

Thanks for everyone's contribution. The finance company took 50% reduction offer so I've now settled it.

molerat

No point going in high as, from their point of view, if you can afford 6 you can afford 7.  Why would they be interested in taking an offer if you are selling where, unless there is not enough equity to cover the first charge, they are going to get all their money.  By letting them know you are selling you have given them more reason to play hard, you should have gone in cold with 50% offer of cash now "just for your own peace of mind"

fatbelly

At this stage I think the answer is going to be no, but you can try,

Is this a solely owned debt on a jointly owned property by any chance?

You may have another option

Iansellers

molerat said:

No point going in high as, from their point of view, if you can afford 6 you can afford 7.  Why would they be interested in taking an offer if you are selling where, unless there is not enough equity to cover the first charge, they are going to get all their money.  By letting them know you are selling you have given them more reason to play hard, you should have gone in cold with 50% offer of cash now "just for your own peace of mind"

Thanks, there's nothing stopping me going in at 50% now then I guess as I could say the 7k charging order is the thing stopping me selling it so I'll have to go bankrupt if they don't accept £3500 in full and final settlement.

Iansellers

fatbelly said:

At this stage I think the answer is going to be no, but you can try,

Is this a solely owned debt on a jointly owned property by any chance?

You may have another option

It's a solely owned debt on a solely owned property.

I'm not sure what to put in the email to them. Do you think I should offer them 50% in full and final settlement and advise them if they agree I will pay within 7 days but in then next sentence say that if they don't agree to that, that I will go bankrupt and they will receive nothing? I'm not sure best way to approach them on email.

MorningcoffeeIV

How likely are you to go bankrupt for a couple of thousand?

And how likely are they to believe you?

I doubt they believe you would be so self destructive.

Iansellers

MorningcoffeeIV said:

How likely are you to go bankrupt for a couple of thousand?

And how likely are they to believe you?

I doubt they believe you would be so self destructive.

Very likely to go bankrupt if I can't raise enough to settle my mortgage and charging order by the sale of my property which is what the current situation is. This is not just a couple of thousand pounds.

I currently have a property worth less than the outstanding mortgage and charging order. I'm trying to figure out a way to avoid bankruptcy by paying less on the charging order and by carrying over some mortgage shortfall onto a credit card. Trying to do it this way pays off my mortgage,  short settles a charging order and leaves me with a credit card debt but leaves my credit in tact.

The other option is go bankrupt....

Minkym00

I wouldn’t rush to bankruptcy for a mortgage shortfall. A lender is unlikely to incur yet further costs to make you bankrupt when they know you have no assets. What debt advice have you sought so far?

TripleH

Please don't put the shortfall on a credit card, that's one way of definitely going bankrupt.

MattMattMattUK

How have you got to the position where your mortgage is more than the value of the property when until only a month or two we have seen more than a decade of sustained house price growth? Is this an equity release mortgage?

LunaLater

How long is it going to take you to save up the £7,000? It’s quite a small amount to go bankrupt over.

Could you find a second job at the weekend?