Settlement offers - partially settled and charging orders

angel_whip · 9 March 2019 at 10:10AM

Hi

OH has a Charging Order on the house from a debt from a few years ago.

Received a letter yesterday offering him to settle it for 60% (DrydensFairfax Solicitors). The letter says that if we pay it they will take immediate steps to remove the charging order, and update the account as 'Partially Settled'.

My gut feeling is to just do it but wondering if anyone can offer any advice on:

* Does partially settled really affect credit rating? Know that obvs better than an outstanding debt, but wondering if should negotiate if they will mark it as settled

* Should we see this as an opening offer and see if we can negotiate it any lower?

Thanks in advance

sourcrates · 9 March 2019 at 12:42PM

Hi,

By all means enter into negoatiations with them, the settlement figures that are offered are never usually set in stone.

However, you can only settle a debt, when its paid in full, anything else is a partial settlement, but that should not affect you that much, as you say the debts are a few years old now, they only show on your credit file for 6 years after default, so fairly soon they will be gone, so it won`t matter a jot what they were marked as.

Just make sure any settlement is agreed in writing, and that they agree not to chase the outstanding balance etc.

fatbelly · 9 March 2019 at 2:35PM

More importantly you want the ccj marked as settled and the charge/restriction removed at the Land Registry.

What does the letter say about that?

angel_whip · 24 March 2019 at 4:52PM

Thanks for the advice (and sorry for delay in replying):

The letter says that upon receipt of the settlement payment they will "take immediate steps to remove the relevant entry recorded against your property at Land Registry" and "Where your account is reported to the Credit Reference Agencies and a settlement has been paid, your record will be updated as 'Partially Settled'..."

Ideally I would like it to be marked as settled - is it worth asking for that?

fatbelly · 24 March 2019 at 7:00PM

angel_whip wrote: »

Thanks for the advice (and sorry for delay in replying):

The letter says that upon receipt of the settlement payment they will "take immediate steps to remove the relevant entry recorded against your property at Land Registry" and "Where your account is reported to the Credit Reference Agencies and a settlement has been paid, your record will be updated as 'Partially Settled'..."

Ideally I would like it to be marked as settled - is it worth asking for that?

You can ask - but they're likely to say no.

You are getting a good deal by them settling charging order at a discount and getting it removed. Personally I'd bite their hand off with that offer. If you moved house next month your conveyancer would be giving them 100%.

When was the ccj awarded? The ccj entry disappears 6 years after that

When was the default entered on the original creditor entry? The original creditor entry disappears 6 years after that and it's that that carries the settled/partially settled marker.

angel_whip · 24 March 2019 at 7:04PM

Fab - thanks. That was out gut feeling, but wanted to make sure right choice. Appreciate the advice.

Settlement offers - partially settled and charging orders

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