Partial Settlement

shomk

I am writing to my creditors to offer partial settlements on several debts
.
How much detail should I go into in the letter? Basically I have had to take on exs debts as part of divorce. He refused to work and left me paying his debts as well as my own. Some are against the house. There is a non-molestation in place. The debts go back so far they don't even show on my credit file and there is no way I could pay these in full now or in the future.

I don't really want to go down the road of laying it all out for them, but also I'm asking them to accept just 20%, so I need to be in with some chance.

So far I have written this:

I am recently divorced and left with a lot of debt, with different debtors. Some of the debts are in my name and some belonged to my ex-husband and I have been paying for these without his contribution for several years now and there is a non-molestation order in place due to domestic abuse. As part of the divorce process, I have taken on these debts as my own as they have been charged against the property and I wish to ensure that it is a secure home for my children.

 The debts are historic and whilst I pay a monthly amount it is very small and to date very little has been paid off the debts. I do not have enough money to pay the debts in full and am supporting two children so cannot raise my monthly payments. It would take years for me to pay these debts in full.

 I have obtained a lump sum of £5,000 which would enable me to make a full and final settlement offer for each of my debts. I am enclosing a breakdown of my debts for your information.

 On this basis, I can afford to pay £ and I want to offer this as full and final settlement of the account. I am making this offer on the clear understanding that, if you accept it, neither you nor any associate company will take any other action to collect or enforce this debt in any way and that I will be released from any liability. This debt has also been marked as a charging order against my property and upon receipt of payment, this should be removed.

Does this seem ok?

I was going to put in a sheet to show who my creditors are, how much I owe them and how much I am offering them.

Do I need to put in a weekly/monthly budget sheet to demonstrate I cant pay any more?

Thanks for reading!

x_raphael_xx

I have no experiance in this, so forgive me if I'm wrong...
But I would probably avoid telling them how much your lump sum is, as they may ask for more if they know your available funds. I doubt they'd care about other debts to other creditors, my feeling is they would want all of their own.

I personally would just put "I have obtained a lump sum, which would enable me ..."
And then make your offer.

fatbelly

I would say that a third party has offered a !ump sum to help me clear these

The people you owe money to are creditors. You are the debtor

However you should not indicate that you are paying debts that are not yours. In fact, why are you doing that? Sorry you did cover that. You may not get much joy if the creditor believes they are secured by ccj/charging order. You may just have to let thse sit there till you sell, unless they are actually a restriction not a full charge

sourcrates

You really should use the National Debtline template letter, you can find that here -

Sample Letter - Settlement offer | Sample letter | National Debtline | National Debtline

Keep it business like, not to much personal information, this is a business transaction, all they are interested in is your ability or non ability to pay, and why they should accept an offer from you rather than keep on accepting monthly payments.

shomk

Thanks.

I am using the national debtline letter but have tweaked it. I'll amend it a bit to keep it to the point.

The charges are restrictions so hoping they might clear. If not then its plan B! I'll add in about the third party.

Do I need to send a budget?

fatbelly said:

I would say that a third party has offered a !ump sum to help me clear these

The people you owe money to are creditors. You are the debtor

However you should not indicate that you are paying debts that are not yours. In fact, why are you doing that? Sorry you did cover that. You may not get much joy if the creditor believes they are secured by ccj/charging order. You may just have to let thse sit there till you sell, unless they are actually a restriction not a full charge

sourcrates said:

You really should use the National Debtline template letter, you can find that here -

Sample Letter - Settlement offer | Sample letter | National Debtline | National Debtline

Keep it business like, not to much personal information, this is a business transaction, all they are interested in is your ability or non ability to pay, and why they should accept an offer from you rather than keep on accepting monthly payments.

fatbelly

Regarding the restrictions, i would leave them alone till the time comes to sell.

You will see from Charging Orders? The Myth that we are seeing successes with houses being sold without them being paid. The debt then just goes back to an unenforced ccj and if it's not your name on the ccj, it's not your problem

https://forums.moneysavingexpert.com/discussion/1839539/charging-order-the-myth#latest

No need to send s budget. Maybe post again if they ask for anything