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    • Indebtandwanttobefree
    • By Indebtandwanttobefree 1st Aug 16, 6:46 PM
    • 1Posts
    • 0Thanks
    Indebtandwanttobefree
    Full and Final Settlement
    • #1
    • 1st Aug 16, 6:46 PM
    Full and Final Settlement 1st Aug 16 at 6:46 PM
    I have got a query that I would like some advice for. I have an overall debt of 10,895.41, owed to 4 creditors (2 of which are Cabot). I have been paying them back at 1.00 per month each for the last 5 years. I am in no financial situation to increase the payments for the foreseeable future. My debts are as follows -
    2373.11 - Cabot (Lloyds Credit Card)
    2063.49 - Apex (Lloyds O/D)
    4652.46 - Cabot(Lloyds loan)
    1806.35 -Arc Europe (MBNA Credit Card)

    Recently Cabot wrote to me offering me to pay 30% of my debt of 2373.11 to them, to update my record as 'partially settled' with a nil balance outstanding. Once I have made the payment they will send me a letter of confirmation that the account has been cleared - this offer was for 14 days running from 16th July - 30th July 2016.

    I contacted Step Change for advice to ask for advice and they said I was eligible for a debt relief order. I replied that I would rather offer all debts a Full and Final Settlement as a relative has offered to loan me 2500 - 3000 to clear my debts. The response was that that amount was not enough to offer for F and F settlements, only option is DRO. I then asked about accepting Cabot's offer of 30%. They replied saying that it was not good as it would show me to be discriminatory against my other creditors. I thought that it would be good to at least get rid of one of my debts.

    I then rang up Cabot asking whether they would consider 30% of my loan, as a F and F, they said no but they would accept 80% or if I sent a financial statement maybe more. I then said about the 30% offered that I couldn't raise it before the deadline. They said that this was ok and that it could be extended. But I am worried what situation it will lead me to. After agreeing to payoff one of the debts out of 2 owed to the same creditor? Are they going to backtrack saying that the offer has expired and money is taken to just pay off some of the debt owed not clearing the balance? I am tying myself in knots with this.

    Do I -

    1. Do I accept the 30% offer, would this be counted as discriminatory - if so what would happen?
    2. Should I then write to the other creditors offering 15% to all i.e. start low
    3. Should I write to all creditors including Cabot who made me an offer, asking them for a 15% amount.

    Please any advice on what I should do, would be very appreciated
Page 3
    • fjimmy007
    • By fjimmy007 14th Apr 18, 1:55 PM
    • 10 Posts
    • 1 Thanks
    fjimmy007
    full and final settlement after default
    My ccj is 5900 pounds with mbna , what if I dont pay them and it is expiring on 2022 , should I be liable to pay them after 6 years even if it is not paid.
    • fatbelly
    • By fatbelly 14th Apr 18, 4:11 PM
    • 12,971 Posts
    • 10,041 Thanks
    fatbelly
    My ccj is 5900 pounds with mbna , what if I dont pay them and it is expiring on 2022 , should I be liable to pay them after 6 years even if it is not paid.
    Originally posted by fjimmy007
    Yes the liability doesn't cease at the six year point.

    However, it does drop off your credit file and if it has not been enforced by then, then they will need to go back to the court to ask permission.

    http://forums.moneysavingexpert.com/showthread.php?p=63806369&highlight=enforced+ccj#p ost63812734
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