Making an offer to debt collection agencies, anyone done it?

[GeetTallBird]

To cut a long story short, dh left in jan after saying he'd pay mortgage etc and didn't. I haven't been able to afford to pay anything off these since then and they've been passed on to collection agencies.
So I owe
Natwest £120,000 on mortgage
HSBC £1600 from an old joint account
Natwest overdraft £1600 from joint account
John Lewis c card £3000
M&S c card £3000
HSBC c card £1500.

Am now utterly f*cked financially, the letters are coming in thick and fast saying they will be calling at my house.

The only light at the end of the tunnel is that I sold our house for £140,000 and after paying solicitors fees of £1800 and £750 I should have a bit left over to pay creditors, however that's all the money I will ever have, as my inheritance was sunk into the house as deposit!! Dh says he wants £500 from the equity and I can have the rest.
I'm going to get the equity paid to my mum so there's nothing in my name.

So...I want up make the creditors an offer, where do I start??

[feminewiles]

Omg, he really has left u in the shit, remember these are half his debts and he should be paying half for all of them. If you have the monies to pay these creditors then I would then take him to court for half of all the ones that aren't the mortgage

[feminewiles]

Oh and remember as long as you pay something they cannot refuse it even if its a pound. They can refuse the offer but if you can pay by Internet or automated call then there is nothing they can really do as you are making payments

[invicta]

Your husband shouldn't get anything until the debts are paid off. He helped to cause them!

[Pinkmumma]

Before u do anything call CCCS for advice. They are a FREE charity and are brilliant at explaining everything clearly. Good luck

[GeetTallBird]

Ah thanks, I'll check that out. Yes I am left in shit, he says he doesn't want anything else but the £500, there's a whole lot more but it's just all too much for me right now.
Has anybody ever spoken to a credit card company & offered a one off in full & final settlement?

[GeetTallBird]

Bump?

[InvisibleHotPinkWeasel]

Right total up your debts. Lie through your teeth about how much money you have from the house sale. Remember it's in their interest to recoup as much as possible so a quick low settlement is not in their favour unless they think that's all you have.

Call for a settlement figure and say its too much. They may go lower. What sort of debts are they?

[needsomesunshine]

As the debts are under 6 years old you have to pay them. But start off low. DON'T offer the full amount. They may accept 40%. It is wise to look at your credit report on experian but make sure you pay a one off charge bit free trial as they are a bugger to cancel. You can check on your report what defaults have been registered against you. Hope that helps. My credit report is finally clearing after 6 long years!! Good luck

[uggmum]

I am a debt counsellor and I agree with the poster above that you should call CCCS. They are a charity, will not charge you a fee and will negotiate with your creditors on your behalf.

[InvisibleHotPinkWeasel]

The CCCS are also vastly better than CAB for negotiating settlements on your behalf. That's not a derogatory comment to the CAB, but debt collectors deal with the CCCS such a lot and respond to settlement offers from them very quickly.

[GeetTallBird]

So CCCS negotiate on your behalf? To settle a one off final payment?
Thank you all so very much, I'll post again tomorrow after seeing solicitor & seeing how little I'm going to end up with. My mum is really sad that my life has come to this, so am I, I'm so embarrassed too

[InvisibleHotPinkWeasel]

Do not be embarrassed. It is ok to miserable that life has turned out rough but you have nothing to be ashamed about. Keep posting - it sounds as if settlements are your best option as your credit is probably screwed anyway. Get settled in in 6 years you'll be clear again.

I'm sure your Mum is worried about you, she loves you. Try and focus on this as laying the foundations for a better future.

[GeetTallBird]

I'm ashamed as when I met him he had a decent job and I was all starry-eyed about the future, he quit that job & worked for himself, ran up debts of £3k, I borrowed the money for him to pay it back...and he didn't pay it back ..it was wasted away on lies and lager, I didn't realise until debt collectors letters came in 6 months later. So I borrowed it again (how stupid am I?) to pay it all back.

[NicholasTeakozy]

I have read somewhere that you should only pay the original lendor. Any lendor who has 'sold' your loan has been paid, so a debt collector acting on behalf of any company/individual who has bought your original loan can be thanked for paying your debt for you. I'll have a dig for the article I read, it was most interesting.

[InvisibleHotPinkWeasel]

Nicholas, depends. If the original lender has sold the debt to a reputable agency, which going by the age these will be than it will be at a reduced rate. The DCA need to make a profit on the batch. If you pay the original lender they will have to transfer the balance to the DCA so will only take the full amount, or they have to buy the debt back. You can have more leeway for a better settlement with the DCA.

If however the DCA are comission based and the debt is still owned by the original company than it may be prudent to pay the original creditor a settlemnt as this means they don't have to pay the DCA commission for collecting the debt in full.

Geet you are in a position of strength as you have no assets and if the money is currently in your mums name they cant find it

And again, you are not stupid and have nothing to be ashamed of. You loved someone and tried to help them and they abused this.

[RedHelenB]

BVe careful though, if you are made bankrupt you will be seen as deliberately hiding money by putting it in your mum's name. Don't give your ex any money until you have sorted all the debts.

[GeetTallBird]

Thing is, my mum lent us £24k (which we were repaying monthly, there are standing order mandates to prove this) to be able to afford the mortgage, if I repay her the equity that I've got now, it would not be seen as hiding it...would it??

[InvisibleHotPinkWeasel]

No, not at all.

They have to accept its paid off a loan. If they wanted to get their debts prioritised they should have already took you to court.

They wouldn't pay to make you bankrupt unless they thought you had large enough assets and small enough debts to make if worth paying to enforce bankruptcy.

So at the moment they'd be doing you a favour of they paid to make you bankrupt, your debts would be written off

[GeetTallBird]

Holy sh*t I don't want to be made bankrupt!!

[RedHelenB]

Yes, paying back your mum is favouring a creditor - you need to be very careful as that is going to get you in trouble as you already know you are insolvent.

[InvisibleHotPinkWeasel]

You should be fine if it's done and dusted as it were. God knows creditors always try and get themselves favoured.

If you had already gone to court than moneys owed to primary creditors would by the inland revenue and council a etc.

Seriously, get the freephone number for the CCCS. Go through your full situation so hey can assess how best to help you.

Have Natwest had the money for the mortgage yet?

If so don't worry about bankruptcy. The other debts are all unsecured and fairly low amounts so you should easily be able to negotiate or get the CCCS to negotiate on your behalf.

[InvisibleHotPinkWeasel]

As long as the mortgage is dealt with as the priority, I genuinely don't think you need fear the others, especially as you are approaching them to make payment.

[squeakspieandchips]

I have been where you are now except i was left with 21,000 worth of debt

All of it in my name because i bailed ex out. Not my best move!

I absolutely agree with everyone who has pointed you in the direction of CCCS. A lot of the debt companies might offer you a huge discount to clear the debt asap when they are first contacted but some might not until they see that it will take you 90 years to pay it back via CCCS

If they wont offer you a discount immediately then set up the CCCS plan paying what you can afford, (not including your settlement) and within months the letters will come offering a reduction which you can then settle.

Goodluck, i'm still crawling my way out of it 7 years later but i am determined to do it.

[GeetTallBird]

Natwest have had their mortgage paid, thank god! Plus the solicitors and estate agents are paid. I have about £17500 left.
I have worked out I owe £35,800, the CCCS think (after completing their online forms) I can afford to pay back the creditors every month....WTF? I can't afford to eat some nights, just so DC's don't go hungry!

[InvisibleHotPinkWeasel]

Ok fine. They've told you what they are supposed too.

Which debts are defaulted?