# Lumpsum offer on debt, bank refusing writedown.



## Nellie (26 Jan 2016)

Hi I would very much appreciate any advice given on how to handle my financial situation.

I took out a Trader up Mortgage some years ago, this product enabled me to get a bridging loan to purchase the house while I was waiting on my first home to sell. There was an accepted offer of 330k however this fell through within 3months and I was left with the bridging loan debt (and the house)
I tried my very best to keep payments up by renting to pay the interest only payments @ over €1k pm however I eventually succumbed to bank pressure to sell in 2013 when my husband was made redundant.
The house was sold for a approx 100k leaving me with residual debt of over 200k, at that time they agreed to park €180k and commence payments on loan of 40k (I signed new credit agreement to do this)

Last year I made the decision to take a voluntary redundancy package and spoke to the bank about my options, after some negotiation they told me that they would take 70% of my package but would not agree to write down any of the residual debt however they did agree to park it for a couple of years to allow me time to get a new job on condition that I sign a new agreement and submit annual reviews.
I received this lumpsum at the end of November and my doctor advised me not to sign a new agreement until I get proper advice, I have put these funds aside.

I understand that to go down the insolvency/bankruptcy route I will lose my qualifications however I am prepared for this in order to get closure as I am now going into my ninth year of this debt hanging over me.
I have read up on some options; am I correct in assuming that the DSA/ Insolvency routes will not be an option as this bank is my only creditor and they have made it clear they will not writedown any debt therefore forcing me to go down the bankruptcy route? I would also appreciate opinion on what could possibly be the worst case scenario if I decided to stop engaging with the bank.


My main concern is keeping my family home, I pay my mortgage every month, the house is in slight negative equity (approx 20k) but this does not concern me.

I am married with 2kids and the debt & mortgage is in my name only.

Many thanks in advance for any advice.


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## Mr Holmes (27 Jan 2016)

What bank are you with ?


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## Bronte (27 Jan 2016)

*Debts:*

200K
180K Parked
40K subject to payment plan

*Home*
Value
NE: 20K

*Assets
*
Redundancy




Nellie said:


> I received this lumpsum at the end of November and my doctor advised me not to sign a new agreement until I get proper advice, I have put these funds aside.
> 
> I am married with 2kids and the debt & mortgage is in my name only.
> 
> ...



Well done your doctor.  Unless you were on some amazing salary the bank should have written down your debt when the property was sold.  I assume you were paying a horrendous amount of interest on the bridging loan.  The fact they parked so much of the debt demonstrates that you really had no spare money.

So the only asset you have is a lump sum, you are unemployed.  Is your husband employed.  You have nothing they can take from you other than your redundancy.  How much is this, less than 100K ?


You are very fortunate that your home is in NE, you might not think it but it means the bank are wasting their time trying to get anything there.

You absolutely need to go see a professional advisor to find out your options.  It might be a negotiation of some of your redundancy for a full and final settlement for example, without insolvency.

But I'd be looking long term, enough to pay the mortgage on your home, professional fees and money for a replacement car etc.

Does your job depend on your not being insolvent or bankrupt?

*Rental income*

Are you liable for tax?  If you are, than the lump sum might also be better off being used for this too.

*Worst case scenario*

For you it can't be actually worse than the life I imagine you've been living up to now.  Based on the facts you've posted the only thing they can go after is the lump sum.  I'd be putting a bit here and there, post office, credit union, prize bonds, husbands account, or just spend it, if you haven't got it the bank can't get it


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## Nellie (27 Jan 2016)

Thanks Bronte, yes my husband is employed but on basic wage, I will have to return to work shortly to make ends meet but would like to sort myself out first.


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## Brendan Burgess (27 Jan 2016)

You won't be able to get a comprehensive , meaningful answer without providing comprehensive, meaningful information:

* Information required for mortgage arrears and negative equity questions*

In particular 
How much is the lump sum? 
Which bank is it? 
What salary would you expect on return to work? 
What age are you? 
What is your husband's earnings outlook? 
Is your family home in both names? 
Who is the family home loan with? 

Brendan


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## Gerry Canning (27 Jan 2016)

Nellie , Welcome to AAM , do take the time to do as Brendan suggests. There is a lot of good advice on AAM.
...........................................
For now ensure your family home stays up to date.
Do not be bullied in any way ,and as per Bronte I applaud your doctor.


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## Nellie (27 Jan 2016)

You won't be able to get a comprehensive , meaningful answer without providing comprehensive, meaningful information:

* Information required for mortgage arrears and negative equity questions*

In particular 
How much is the lump sum? 80k
Which bank is it? BOI
What salary would you expect on return to work? It's hard to tell as it is likely I will have to change careers so I imagine I will have to start off on a lower salary. I have excellent experience but only in finance so if i go down the bankruptcy route then it will have a major impact.
What age are you? 41
What is your husband's earnings outlook? Max 30k - 35k
Is your family home in both names? No unfortunately in my name only.
Who is the family home loan with? 
BOI
Brendan 


Thanks Brendan. See responses next to your headings.


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## Brendan Burgess (27 Jan 2016)

Very hard for anyone to give you meaningful advice if you won't give the full figures per the case study format.

Brendan


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