Full and Final Settlement Help

RecentPost · 16 July 2019 at 8:51AM

Long story short - 6 years ago I had a business that failed and lost my main PAYE employment at the same time, which ended up in approx 30k of debt which was sorted out without getting help from a debt charity after 5 years.

Last year I had a relationship breakdown which led to 9k of debt which I have entered a DMP for with PayPlan for approx 3 years which has been in place 4 months, after some negotiating and payments the balance stands at £6,959.

I will be in a position where I can be gifted roughly 50% of this from a family member to pay off the balance.

My question is the majority of the defaults are currently only 3/4 months old, has anyone got any knowledge of 50% F&F balances being offered at this early stage?

Willing2Learn · 16 July 2019 at 11:29AM

You are not very likely to get any sizeable reductions so soon after the accounts have been defaulted.

You would be more likely to successfully negotiate lower settlements at the end of the current financial year ([STRIKE]April[/STRIKE] March 2020). This is because the DCAs will be looking to balance their books ready for the next financial year.

kangoora · 16 July 2019 at 12:34PM

Willing2Learn wrote: »

You are not very likely to get any sizeable reductions so soon after the accounts have been defaulted.

You would be more likely to successfully negotiate lower settlements at the end of the current financial year (April 2020). This is because the DCAs will be looking to balance their books ready for the next financial year.

Surely you mean March 2020? After April 6th they are aleady in their new financial year.

Lots of firms I have worked for bust a gut to get cash into the business in February/March to improve their current year ending financial position. Strangely enough this might mean their next years income is compromised but basically, IMO, it's pretty much driven by all the bosses wanting their on-target (or over-target) bonuses and they'll worry about the next year when it comes around

RecentPost · 18 July 2019 at 4:17PM

Thanks, I would never of factored that in!

None are with DCA's but will probably start to filter over soon.

RecentPost · 11 December 2019 at 1:26PM

I got to the point where I was able to offer 4 of the creditors 50% I did this with Payplan.

Two rejected bamboo/likely loans.

However two Aqua cards were offered at 65%! on a balance of 2700 and 388! So this has reduced my balance considerably.

I was shocked they did this at an early stage but I guess it saves them a lot of time with the DMP going on for so long.

I am down to £1800 on my DMP - considering a snowball for the rest!

fatbelly · 11 December 2019 at 9:00PM

Yes it's possible. Start by offering less than 50% to give yourself some room for negotiation

leninspot · 8 February 2020 at 11:24AM

I see it's a while since your post but noticed you are with PayPlan. I was also with them but it costs money & as every penny counts it doesn't make sense. If I were you I'd either move to a free service or do your own DMP. I did the latter & it's been fine. Good luck.

fatbelly · 11 February 2020 at 7:12AM

leninspot said:

I see it's a while since your post but noticed you are with PayPlan. I was also with them but it costs money & as every penny counts it doesn't make sense. If I were you I'd either move to a free service or do your own DMP. I did the latter & it's been fine. Good luck.

Payplan is a free service

Full and Final Settlement Help

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