# Credit Card Debt transferred to Solicitor



## mickeyg (23 Jan 2015)

A good friend of mine is very worried! His wife's Credit Card debt with Bank of Ireland in amount €10k. has been transferred to a solicitor. She has received a pretty snotty letter from the solicitors demanding full payment straight away which I know they are in no way able to pay.
What is the best thing to do in the circumstances - agree a monthly sum or what??

Thanks


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## Gerry Canning (23 Jan 2015)

mickeyg.

Normal enough to get these Solicitors letters.
By all means agree a repayment that you are able to always adhere to.
But agree nothing unless you get it explicitly in writing the terms of the repayment agreement.

Example.
1.You owe k10 and both agree 100 each month.
But if Bank still charge 15% interest on the loan you will never be clear of them.
(that would be stupid)

2.You owe k10 and both agree 100 each month@0% interest , you get clear in 100 months.
(100 months is too long)
3. Do up your sums , if it means you can afford 100 per month offer that for say 5 years ie they drop k4.
My reason is that you and Bank need closure and not have this hanging on and on.

I do not think @k10 , and with a reasonable offer from you the case would proceed by the Bank as it is too costly/time wasting for them.
If it is a case you can show (eg 100 mthly for 60 months ) is sensible , even Banks are now listening!


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## mickeyg (23 Jan 2015)

Thank you for your reply. Is it with the bank that this negotiation should take place is or is it with the solicitor??


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## Gerry Canning (23 Jan 2015)

mickeyg said:


> Thank you for your reply. Is it with the bank that this negotiation should take place is or is it with the solicitor??


.................
Write back to solicitor .Keep copies of everything/ note calls and caller.
He will probably look for her to do a statement of her means.
Do not get sucked into husbands/partners income ie not partners problem.

Be honest but sensible , people have a great way of thinking they can afford more repayments than they actually can! and end up agreeing trouble!.


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## New2015 (28 Jan 2015)

Hello there,

I am in the same situation & hoped you might answer a Q ?
BOI have sent my CC arrears to a solicitor and they are looking to go to court which obviously I would like to avoid. 
I owe in excess of 12k on a CC and 2014 saw a drastic change in our finances as my husband lost his job & I am a stay at home mum of 5, so have no income of my own. BOI only stopped interest and charges for 3 months in 2014 and so my balance has kept on creeping up even though I was in contact with them about our situation since the end of 2013. 
I have tried to make a settlement offer with help from a relative but BOI refused this and sent my case on to the solicitors. The solicitor told me that it was nothing to worry about and that my balance would be 'subject to mortgage' (which Im not sure exactly what it means) but then I received another letter stating that I would be going to court in 28days if I dont pay. I called again and they told me to re-fill out a statement of means & send it back to them, and my Q is do I have to include my partners wage on this form if the CC is solely in my name ? Husband is currently on 3mth contract, so theres no guarantee that we will have employment after that. Thanks for any advice!
Also does anyone know what would be a reasonable offer to make, or are banks accepting settlements in one lump sum, as we don't have anything at the end of each month leftover with 5 kids. 
thanks in advance..


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## 44brendan (28 Jan 2015)

Just some relevant answers to you queries!
- The loan is in your name & not your husband's. However as you are not employed outside the home they have requested details of your husbands income. You need not supply this information to them.
- Given that you have no income of your own a settlement proposal should be offered. Assumption is that these funds will come from your husband's income or from relative. You should persist with this approach as you appear to have no ability to meet a level of monthly repayments.
- There is a limit as to what the financial institution can do if you don't pay. The most likely scenario is that if the settlement proposal is any way reasonable (i.e. €2/3,000) they will ultimately accept this. Alternatively they will go for judgment. No need for you to attend Court as the judgment will be granted anyway. You will receive a Court Summons but as I said this is only a format and you have the option of attending. Once judgment is granted the only realistic option open to them is to register this on your family home. This is of no great significance to you unless you intend selling in the short/medium term.

Most likely outcome is that after some huffing/puffing they will accept the settlement offer if it is anyway reasonable (see above).


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## bigccbalance (28 Jan 2015)

Question open to anyone,but 44brendan you seem to have an inside track!I have €11500 in CC debts currently paying a token couple of quid a month on a six month deal.I rent ,have no  assets,and earn around €300 a month(wife pays all bills).What would constitute a reasonable settlement in a situation where at the current rate of repayment I'll be 260 before its paid off!


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## Gerry Canning (28 Jan 2015)

44brendan said:


> Just some relevant answers to you queries!
> - The loan is in your name & not your husband's. However as you are not employed outside the home they have requested details of your husbands income. You need not supply this information to them.
> - Given that you have no income of your own a settlement proposal should be offered. Assumption is that these funds will come from your husband's income or from relative. You should persist with this approach as you appear to have no ability to meet a level of monthly repayments.
> - There is a limit as to what the financial institution can do if you don't pay. The most likely scenario is that if the settlement proposal is any way reasonable (i.e. €2/3,000) they will ultimately accept this. Alternatively they will go for judgment. No need for you to attend Court as the judgment will be granted anyway. You will receive a Court Summons but as I said this is only a format and you have the option of attending. Once judgment is granted the only realistic option open to them is to register this on your family home. This is of no great significance to you unless you intend selling in the short/medium term.
> ...


New 2015.
Brendan44 has given you good reasoning.
.....................................................
I would be very very reluctant to take money from a relative, there is NO better way to fall out with family! and family are more important than BOI.
I also note you offered said relatives offer to BOI and BOI said no.
They are now using the 28 days (trick) to see can they get more from you.(as they are entitled to )
That was an offer made at that time which BOI refused, so when BOI come back ,tell them that relative has withdrawn help.

You have no income, you have 5 kids , your husband has an insecure job. 
As Brendan44 said , you do not have monthly repayment capacity.
What would be the long term benefit in saddling a family debt (forget about the amount)
Send BOI your statement showing you have nil income in your own name.
You do not have to give husbands position , but given what you say ,it should do no harm to give it since with 5 kids + rent/mortgage I don,t see any free cash.

I am inclined to ask you to go to MABS , they appear to be very good at sorting these CC issues.


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## Gerry Canning (28 Jan 2015)

Gerry Canning said:


> New 2015.
> Brendan44 has given you good reasoning.
> .....................................................
> I would be very very reluctant to take money from a relative, there is NO better way to fall out with family! and family are more important than BOI.
> ...


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## 44brendan (28 Jan 2015)

Due to the high level of amount owing this will not be written off. MABS will only sort out if you are able to meet a monthly payment. As I advised previously if a relative is prepared to "gift you" a reasonable sum to pay off this loan the offer should remain on the table. If accepted it will wipe the debt and avoid a judgment. Decision is really up to you. If you are prepared to accept the risk associated with a JM and have no intention of selling the property in the short/medium term you can just ignore the issue!


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## New2015 (28 Jan 2015)

Hi, thank you for all the advice & for replying so promptly.
The offer that I made to BOI was for 3k which they refused, but I may offer the same again to the solicitor and see if they would reconsider. My preference would be of course to settle rather than have it hanging over the mortgage in case we do move (which is very likely as we are currently all in a 2 bed and need to extend or move, possibly to a cheaper area of the country, although the house is in neg equity at the moment, so we'll see), so thanks again, I really appreciate your help.

I have been on to MABS a few times & they are a great service, but for my case they really didn't point me in any direction other than to advise me to keep up good contact with BOI and gave me a money management pack to help budgeting going forward. 

Kind regards..


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## Gerry Canning (30 Jan 2015)

New 2015.
BOI do appear to be playing hard , even when debt is not sustainable.
If your figures show that you do not have repayment capacity , that you are in negative equity etc etc , then k3 now seems to make pragmatic sense.
Suggest stay with k3 .

Big CC Balance.
1. Has the balance stopped adding on interest?
2. Can you afford to keep paying the small amount?
3. Are you genuinely paying what you can afford?

A. Can you get your hands on circa 2,500 to finish this?
B. I see little point in having you on the hook for ever and ever .

If you can offer circa 2,500 in full settlement I suggest you do it.
Just paying nominal amounts drags things on.
I expect you want closure .

So circa 2,500 to them and have closure;
 or walk away,  repay no more ,

What I am suggesting is to force closure, and get on with your life.


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## New2015 (30 Jan 2015)

Thanks Gerry Canning,
I had already stopped making repayments and offered the 3k to close. The bank only stopped adding interest for feb-apr last year and kicked it off again despite my pleading with them not to, so the balance is a lot more than the original sum which was around 10K.
I think I'll go back with the same offer, this time to the solicitor & see what they say. 
And yes I definitely want closure 
Thanks again for all your help!


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## bigccbalance (31 Jan 2015)

Hi Gerry,A bit confusing with two posters getting advice on the same thread(my fault).
The Cc has had interest stopped.I earn about 250 a month part time,and herself take home about 2300 with rent of 1200.Due tothe location of my wife's work,we need 2 cars(2 kids).So,even the token payment is all I have.
I see no point in the extend and pretend farce that I am going through at the moment,but agreed to it to get past Xmas.My 6 months on this deal is up next month,and I am thinking of just saying that I have no more money to give,so my new payment will be zero.Will this force the bank to act
I could maybe get 500 Euros from my mother as a soft loan,if this would be enough to get closure.Otherwise,the bank could get an unenforceable judgement (would they bother as I have no assets except a 12 year old car ?)
Would you have any experience of how little a bank would accept in a hopeless case?


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## Gerry Canning (2 Feb 2015)

bigccbalance said:


> Hi Gerry,A bit confusing with two posters getting advice on the same thread(my fault).
> The Cc has had interest stopped.I earn about 250 a month part time,and herself take home about 2300 with rent of 1200.Due tothe location of my wife's work,we need 2 cars(2 kids).So,even the token payment is all I have.
> I see no point in the extend and pretend farce that I am going through at the moment,but agreed to it to get past Xmas.My 6 months on this deal is up next month,and I am thinking of just saying that I have no more money to give,so my new payment will be zero.Will this force the bank to act
> I could maybe get 500 Euros from my mother as a soft loan,if this would be enough to get closure.Otherwise,the bank could get an unenforceable judgement (would they bother as I have no assets except a 12 year old car ?)
> Would you have any experience of how little a bank would accept in a hopeless case?


..................
I see in Sunday Papers Boi were raised as not prepared to properly work out debt.
1..If you do not have the funds ,there is little to be gained from hounding you.
2..If you paid a nominal amount each month , you will never get rid of it, it gets like a bad tooth! 
3.. By all means firmly tell them you have no free funds.
4.. They may ask for your statement of means, send that on .
5.. Do not refuse to take phone calls but request everything in writing.
The problem with phone calls is that just to get BOI off the phone, most people agree to repay ,even though afterwards they know they can,t afford what they promise
Calls are recorded and in any conversation things can be (spun).
6.. Always, and I mean always, note the date/time/name of caller.
7.. Always keep copies of everything.

Paying Nil will force Boi to make a decision.
When they review your means ,
#It may well be they forget about you.
#It may well be they go for judgment .You have no assets so why bother?You sound like you have engaged with them , so judgment would smell of vindictiveness?
# They may pass your debt to collection co. If so, you may get a house call from collection co.There are mostly good collection callers so do not be afraid to
give him the same info as you gave the Bank.
If the caller is a (smart) one ,( unlikely), just ask him to leave, do not get (thick)


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## mickeyg (16 Feb 2015)

I have received the request from the solicitors to prepare a Statement of Affairs. Is there any point in going back to the bank (rather than solicitor) with an offer of say €150 per month? Would that be seen to be reasonable on a €9.8k. CC bill??


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## 44brendan (16 Feb 2015)

No. Once file is transferred to Solcr it is probably on a "no foal no fee" basis. They are now the people to deal with. They won't agree any deal without a SOA and usually an income statement. Send SOA back and offer the €150 pm if this is what you can afford. However, make sure you do some deal on the interest rate or you could end up with paying all of your funds towards interest. Don't just negotiate a payment without establishing exactly the term and the interest rate applicable.


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