Author Topic: Full and Final Offers  (Read 3388 times)

greatfryupdale2

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Full and Final Offers
« on: May 02, 2013, 11:24:43 AM »
Hi,


I've been in a DMP now for 3 years with debts totaling around £33k.  Recently I sent out a pro rata offer of full and final settlement, also stating that I was no longer working due to ill health, the offer was only around 23% so unsurprisingly only Santander accepted but said that the debt would be marked as partially satisfied and would still show on my credit file.
Can anyone advise on my next step as I still have an amount of money that could become available from a family friend if creditors accepted an offer.


Thanks

Re: Full and Final Offers
« Reply #1 on: May 11, 2013, 11:38:24 PM »
Hi

I am somewhat of an expert on the subject

The best way to proceed is to continue making minimal monthly payments. If you go through your financial statement with them, and it shows that there is no disposable income you could get away with not making any monthly payments.

Do not mention the fact that you can get more money to them yet.

It is very important to stay in touch with them, and always have an ''arrangement''.
The account will go through the normal recovery routes, and at the right time you call and make your offer.

Make sure that you avoid legal action. Having a company deal with it for you not only avoids the repeat phonecalls from the creditors, but would also ensure you do not have legal action against you.

FYI: If you stay with the debt management plan you will end up paying about 113% of the debt if you include debt management fees.
Have you considered PPi claims, it is always a good idea to review your account.

The % you got with Santander is very good but not far off the industry standard. It is because you have a lot of debt, but as you settle the balances of the various accounts the total debt becomes less and so does your discount. The trick here is to settle the debts so that the largest is last.

Let me know if you need any more information.

Mark Le Roux
Tempest Financial

James Falla

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Re: Full and Final Offers
« Reply #2 on: Jun 07, 2013, 01:07:02 PM »
Hi greatfryupdale2
How are you getting on? Sorry for the late reply to your question. Given the numbers you have quoted am I right in thinking that the overall amount you can offer is around £8000? If so and you owe £33k and are no longer able to work I suggest you look into the possibility of a full and final IVA. Basically this means making the same settlement offer under the formal umbrella of an IVA. The creditors would be prepared to consider this offer as it is coming from an independent insolvency practitioner (IP) who acts as a mediator. I know this is possible as I have personally implemented this solution with a number of people already this year in exactly the same position who are now debt free (some had even smaller lump sums). The fee charged by the IP even comes out of the lump sum so you pay no more than you were originally planning to do.
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