# making offers for settlement of debt that has been referred to legal action.



## in_bad_debt (13 Feb 2010)

Looking for some guidance in terms of making offers for settlement of debt that has been referred to legal action. 

Is there a "normal" percentage? The loan bal is currently €18,500 and is under agreement for the last 2 years. I am payment about €90 a month. 

The bank solicitors are now asking me to make an offer. I cant really get more than €5,000 euros together but Im not sure if that is even worth being offered. 

I mean, i know its not even half of the amont. Has anyone with experience on this? 

I welcome any coments both from solicitors (if any available) and bank staff and people than went through this before.

Many thanks


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## jack2009 (13 Feb 2010)

*Re: making debt settlement offer*

Make the best offer that you can actually afford at the moment, an offer of 5000 will probably be rejected but no point frustrating bank and offering money you do not have.  The may accept the 5000 if you can keep up in increase the 90 per month.


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## dobsdave (14 Feb 2010)

*Re: making debt settlement offer*

I posted this in another thread,
My brother in law has just settled a 35k cc debt for the sum of 16k.
Originally they were offered 18, but they wanted 25.
Seven months after the original offer they have accepted 16 and the account is now closed.
At the same time as he got the letter accepting his offer, he got another letter threatening him with court!


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## in_bad_debt (14 Feb 2010)

*Re: making debt settlement offer*

Many thanks for your post. I dont know your brother but I am as happy for him as if it was my best friend!

 It is a horrible situation to live under debt stress. 

My story was similar as well, we had a business that stated going on losses and I lost my job in 2007 and at end of pregnancy. I did get a job at the end of that year but with an extremelly low pay. Letters from solicitors and threats for court are now part of our daily routine. 

So tell me, did you brother make the offer himself or did he have MABS helping him out? Was he under agreements already, did he have any assets? 

Your post gives me hope, so many thanks once again.


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## dobsdave (15 Feb 2010)

*Re: making debt settlement offer*

He contacted them as soon as he found out about losing his job.
He has a house in positive equity.
Dealt with them personally by phone.
Eventhough they froze the interest, he was still getting 'threatening' letters about court and collection agencies, but as far as I know the letters weren't from solicitors.
He got the feeling he was dealing with two seperate halves of one company!
He paid them something each month also,(not sure, but definitely less than 100 euro).


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## ali (15 Feb 2010)

*Re: making debt settlement offer*

What happens to his credit rating? Did they say the settlement would appear on ICB. Could he have negotiated against this as part of a settlement? Absolutely great for him to have negotiated away 19K of debt but I wonder about the cost long term. If he wants to start another business etc. Will he never get another loan? 

A.


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## dobsdave (15 Feb 2010)

*Re: making debt settlement offer*

The settlement will show on his ICB account for 5/6 years as far as I know.
Small price to pay for wiping 19k of debt out in my opinion.
The original offer from them was only 10k being wiped out
He never had a business, dont think he would be interested either.
He is very happy with the outcome, dont think any bank would take such a settlement and not put it on ICB?


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## bond-007 (15 Feb 2010)

The banks are at the moment willing to do crazy things to get the money in.

They know that taking someone to court is costly and likely to yield very little in the short term. By accepting 40% now they have that money now, money which they may have never been able to recover.


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## in_bad_debt (21 Feb 2010)

just got the answer back from one of the loan' creditor. They accepted 3000 against 5200. Thats one gone! I am so happy that can't even describe it...as i said before, it gives me hope. Things are getting better!
Still have a long way to go, next will be the 4500, and then I will work on the biggest ones,theres one for 21000 and another for 18500.

Maybe in a couple of years I will be able to live my life again....because as for now...i am feeling like a vegetable...


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## senni (21 Feb 2010)

Hi  In Bad Debt

I have a brother in similar circumstances and we as a family will help to bail him out but the issue is.... We can only give him 25k towards debts of 50k. (my sister and I )

He was going to pay a little of each but they will still hound him.

Question.  Can he approach each institution asking for a complete and final settlement himself or would we be wise to instruct a solicitor to do this for us ?


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## in_bad_debt (22 Feb 2010)

i have mabs doing all the talking for me, Mabs are great! They are helping me so much...if it wasnt for them I dont know where would i be by now.
Dont get a solicitor, you can do all the job yourself and I can help you if you need....well...i am no expert...but am certainly getting some experience on this....


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## Bronte (23 Feb 2010)

in_bad_debt said:


> i have mabs doing all the talking for me, Mabs are great! ...certainly getting some experience on this....


 
Can you share with us some of the things MABS does so that others can see how it works and how things can be sorted out.


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## fababby (23 Feb 2010)

in_bad_debt said:


> just got the answer back from one of the loan' creditor. They accepted 3000 against 5200. Thats one gone! I am so happy that can't even describe it...as i said before, it gives me hope. Things are getting better!
> Still have a long way to go, next will be the 4500, and then I will work on the biggest ones,theres one for 21000 and another for 18500.
> 
> Maybe in a couple of years I will be able to live my life again....because as for now...i am feeling like a vegetable...


 
Good luck with your efforts - Can I clarify what kind of debt it is, personal loans or credit card etc?  And obviously you have to come up with the lump sum/one off payment to settle?  Sorry if sound thick but haven't heard of anything like this in past.....helpful to pass onto people in similar situations.

A


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## in_bad_debt (23 Feb 2010)

yeh...you do sound thick...
those were loans from a business that closed off with huge losses.The money for the agreements is coming from my dad that is helping us out as much as he can. There's still good people out there, thank God.
Cheerio!


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## in_bad_debt (23 Feb 2010)

I showed up in MABS the first time 3 and a half years ago and I will remember that day for the rest of my life. The business was having huge losses, we had tried everything possible and nothing was working, I lost my job at that time as well (redundancy)...to be honest ...I was completely lost...and the only way out i could see at that time was suicide. I know this sound horrific, specially when you have never been there, but thats where i was.
They received me and took me to a room, the simple fact that they were so kind and actually did listen to me on that day was something priiceless. They dont deal with business at all so they could not help me, but they gave me a very good sense of hope, when i came out I could actually see the light at the end of the tunnel.After that, i meet with accountant and the banks, we put the business for sale and got ride of it, with big losses. I took responsability for all the losses and from then on, MABS have been working with me... 
the first thing is really to put everything in a paper, all the expenses and all the income. you will have a very good idea of you can afford to offer. Then, they will/you wil 
get in contact with all the banks and explain situation and make your offer.
At the beginning, i thought i was super man and i decided to do this all by myself. i sold everything i had including dresses, coats, coffee table...after a year workinjg day and night and after selling everything, i realized how stupid i was. the more i gave them the more they wanted....never happy...


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## in_bad_debt (23 Feb 2010)

...i finally gave up as nothing was getting any better and for the last year MABS are dealing with the banks on my behalf, we have come to agreements with every single one of them...all the agreeme1nts are based on real figures, i am not promising anything i cannot afford. This loan now, my dad said he would give me the money and i can pay him back whenever i can, so i accepted it, offered it to the bank...i never thought they would accept it but they did....so, one less.
Hope my post rewards MABS for all their professionalism and good will, they are doing a really great work out there and I hope one sees that. Thank you to MABS.


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## Rois (23 Feb 2010)

I'm following this thread with interest, as I didn't realise you could offer/negotiate settlements (full & final).  

I am also receiving lots of letters from debt collectors, but got one today where they said they would settle for a sum of £900 against a balance of £1,060.  I am wondering if I should accept this settlement (as I should have a small lump sum coming shortly) or should I try to negotiate it even lower to say £700? 

If it was only 1 debtor, I wouldn't be too concerned but as I have several outstanding debts, and the more I can clear asap all the better. 

Is it normal to accept the first offer of settlement, or is it worth suggesting a lower figure (considering that a lot of the debt is based on interest, late payment fees etc over a couple of years now). 

Many thanks for advice

Rois


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## senni (23 Feb 2010)

Rois

Offer what you can , taking into consideration that you have other debts. Therefore try the lower figure and start from there, using the remaining funds to offer another debtor.


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## Rois (23 Feb 2010)

Will do senni thank you - they have given me 21 days, but I will get back to them sooner, once I know what the "lump sum" is - which is BTW social welfare payments back-dated to over a year ago, but hard for me to calculate as I have been doing casual work in the meantime. 

At the worst, they can just reject my offer, so no harm in asking. Thanks again.


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## in_bad_debt (23 Feb 2010)

what I have been advised so far by many people..mostly banking staff is to work on an average of 40% and make it clear that it is your final offer and then work from there...on my particular case...i just wish i could pay everything in full and get out of this nightmare.GOOD LUCK! ...and do pls let us know how it goes, all this posts might not be good for much but they are helping each one of us with debt, there will an end to this...


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## Bronte (24 Feb 2010)

In bad debt - thanks for your forthright and touching story.  Sometimes on AAM we lose sight of the real pain of people in debt, I certainly do.  I'm glad things are getting sorted out for you.  I'm sure your story will help others.  It's also heartening to hear that MABS are doing such a good job.


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## in_bad_debt (24 Feb 2010)

Hey Bronte...you are just doing ur job...thats why mabs are so good. If i get a call from a solicitor putting pressure on me to pay, i will be crying on the phone, getting into depression...shoutting at the kids at home...you name it...
the woman from MABS wont get upset, she is just doing her job....just like you... 
I am still far far from having everything sorted, but in 2008 my debt was about 90.000, last year came down to 70.000 and now i am on about 42.000. Thats a massive improvement for me. obviouslly, i sold everything and we have been living like miserables for the last 2 years, i do realize i wont be ble to keep up with this life style, my kids deserve to have a life, but i now can see the improvements and i am looking forward for the day i will come back here to say: Thats it guys! I am done with debts, nothing left... One can dream


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## Bronte (25 Feb 2010)

That's a fantastic reduction in debt since 2008 - from 90K to 42K.  Well done.


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## in_bad_debt (25 Feb 2010)

i know...i am so proud of myself!  you see bronte, i am extremelly organized specially when it come to money, insurances and all that kind of stuff...i didnt make any of these loans, I never ever in my life missed a payment for anything!...this all happened when my partner lost his job a good few years ago and I had to put my name down for him to start his own business...even though it wasnt for me, i always had my own job. the business didnt work well and i become liable for the debts. 
I think now i am going to keep paying the agreements in all the loans and try to go back on my feet....my 3 years old is still sleeping in a cot because i didnt buy a bed for him...


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