Author Topic: full and final settlement  (Read 1934 times)

menna121

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full and final settlement
« on: Jun 26, 2013, 02:16:06 PM »
Hi there
My problem is that having taken out a dmp with 80,000 £ of mainly unsecured loans i have now been paying this for nearly 5 years.
The debt is probably closer to 38,000 now and i was wondering what percentage of that figure could i offer them,(and what percentage are they likely to accept) if i could secure the funds. I have not missed any payments or given any problems over this time with a monthly payment of over £900 pounds.Thanks for any help.

James Falla

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Re: full and final settlement
« Reply #1 on: Jun 28, 2013, 01:26:12 PM »
Hi menna121
 
Wow you have done a great job over the last 5 years. I cannot help thinking that you would have been better off in an IVA rather than a DMP though because if you had done down this route you would be debt free now..... If you have been paying £900 a month you have already paid £54,000. If you still owe £38,000 this is £92,000 so your creditors had added c£12k in interest and charges over the last 5 years. If you had started an IVA this would not have happened.... I know it is water under the bridge for you but it is important information for others reading this post.
 
In terms of your question about a full and final offer, most creditors will accept 50% of the debt to settle especially if you have been in the DMP for this long. However if I were you I would offer 30% first and see what happens. You can always go up from there if the offer is not accepted. Good luck with it and please come back if you have further questions or need more help.
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