Defaulting on a bank loan in Ireland

yaku2 said:
Hi everyone,

Just letting you know how I got on:
I sent an e-mail (using gmail) to the solicitor offering a small monthly repayment - no reply yet.
I eventually got through to the debt recovery dept. of the bank and they accepted a small monthly repayment with a review in 3 months.
Once again, thank you for all the good advice,
Yaku2.
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Good news... if it does end up in court now you will look far better becuase of your offer....
 
How can they reply properly to an 'anonymous' e-mail?

e.g. Dear Sirs.

I wish to settle my loan in full for €10k.

Signed

Mr. X

Meaningless I would have thought.
 
My God, what a situation to be in !

Why don't you come to an agreement with them to pay X per month, get home, and work in McDonalds if need be to pay them back and be on the right side of the law ?

Seems to me to be the right thing to do...
 
Sounds like you are getting things in line yaku2. You're getting some sound advice as usual around here so don't mind the one who can't resist sticking the fork in.
 
Hi everyone, not much to report, but just to keep you posted -

I have received a couple of e-mails from the solicitor, requesting a statement of means, but I have not replied.

Following my conversation with the bank`s debt recovery department, I`m thinking I will send a similar letter, explaining my situation, to them.

I have arranged for someone to lodge the monthly repayments into my account, but finding even this temporarily small amount is difficult at the moment.

Anyway, at least I have some time...
 
Reply to the solicitor telling them that you are in contact with the Bank's recovery department and give them the name of the person involved. Start the payments as agreed, by accepting these payments the Bank are in tacit agreement with the payment schedule. Write a letter to the individual you spoke to in the Bank acknowledging the repayment schedule. This will have the effect of halting the proceedings against you. Also if you have a problem with a payment in the future please contact the bank and let them know. Generally once the bank is happy that you are still in contact they will generally not take the next step to legal.
 
Hi. The 3 months are up and I`m still broke. I can`t make any repayments.
I`ll call the bank again but the only option I have is to default on the loan, unless the bank accepts a small percentage of the debt (and I can borrow it).
BrenG - do you have any idea what kind of percentage the bank might accept?
Thank you,
Yaku2
 
yaku2 said:
I have received a couple of e-mails from the solicitor, requesting a statement of means, but I have not replied.
Click to expand...
Did you ever do this? If not why not?
Following my conversation with the bank`s debt recovery department, I`m thinking I will send a similar letter, explaining my situation, to them.
Click to expand...
Did you do this?
I have arranged for someone to lodge the monthly repayments into my account, but finding even this temporarily small amount is difficult at the moment.
Click to expand...
Was this in line with the originally agreed 3 month agreement? Did you honour this agreement? What is the outcome of the post 3 month review?
 
Hi ClubMan,
I contacted the bank directly rather than the solicitor.
They allowed me to make token repayments for the last 3 months, which I made.
I also wrote to the bank`s debt recovery department explaining my situation.
I have just called the bank again and they said I have to continue making repayments, which is fair enough, but I can`t.
I realise I got myself into this mess.
Any advice?
Thank you,
yaku2.
 
Not sure but I'd assume the bank wouldn't bother wasting the cost of the ink in getting proceedings started against you. They can't even serve proceedings against you as you are out of state, address unknown, furthermore you are penniless and asset less - who would go after that? A man of straw I believe is the correct term.

As I understand it the banks will call your debt - bad debt - and write it off in the accounts.

Probably if you keep paying them - even piffling amounts - they are adding exorbitant interest and penalties to it and you are not even making a dent in the loan.

Find out the statute of limitations on debt/loans and don't have anything to do with the bank until that time is up and don't come back to Ireland either until that time is up - you keep extending it by having dealings with them.

In case I get any lectures about this advice I always pay my debts.
 
If you were making best efforts, particularly payments agreed with the lender, to servuce the loan/arrears then chances are no judge is going to throw the book at you if it came to court. Debtors will get a lot of brownie points for facing up to their responsibilities and attempting to make a best effort at dealing with them.
 
Statute of limitations for a debt is 6 years. This gets reset everytime you make a payment or write them a letter.
 
bond-007 said:
Statute of limitations for a debt is 6 years. This gets reset everytime you make a payment or write them a letter.
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Hi, Can you please explain briefly about this 'statute of limitations' ?
If I leave the country for x amount of time, I can't be chased for payment of my loans?
Thanks
 
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