1. I pay £1,000.00 within 7 days and then a further £1,000.00 on every 12 month anniversary.

2. I also pay £100.00 per month until I have made arrangements to repay the judgment debt in full.

3. I pay to the claimants a reduced sum of £46,000.00 within 12 months in full and final settlement of the debt following the sale or remortgage of my home.

4. offer available for 7 days only.

 

The claimants have advised me that they will still continue to pursue me for the full amount of the judgment debt (£125,000 approx) if I do not pay the requested amount of £46K within 12 months.

interesting .... there seems to be an inherent contradiction here.

is 3.:

a) "Within 12 months, sell or re-mortgage the house, and then pay to the claimants a reduced sum of £46,000.00 in Full and final settlement of the debt", or

b) "With no time limit stated, sell or re-mortgage the house, and then (within 12 months following the date of sale / remortgage) pay to the claimants a reduced sum of £46,000.00 in Full and final settlement of the debt"

a) is suggested by "that they will still continue to pursue me for the full amount of the judgment debt (£125,000 approx) if I do not pay the requested amount of £46K within 12 months", but this doesn't feature in points 1-4. that comprise their offer.

b) is suggested by 1. , as they are setting a £1000 payment each 12 month anniversary, and you can argue that if a) was the case there would be no 12 month anniversaries...... (well, there might JUST be one, but certainly not more than one, so it would be "on the first 12 month anniversary, not 'on every')

They just might be saying b), but if (following the sale / re-mortgage, at some stage in the future), if you then don't pay the 46k within the following 12 months then the agreement to accept the reduced sum of 46k is void.....

So, I think their terms are poorly drafted, ambiguous, and open to question.

If it is b) : why are they settling for 46k when they have a charging order for a greater sum?. Something seems 'fishy' here........

If it is b) : why are they settling for 46k when they have a charging order for a greater sum?. Something seems 'fishy' here........

Following on from that,

I can see the advantage TO THEM of a) if:

i) They don't think they'll get their £120k from your share of the equity when the house is sold in the future (but with no definate timescale for this) , and

ii) They don't think they'll get an order for sale, and don't want to wait an indefinite period of time.

Yet, if they don't think they'll get an order for sale, there is nothing to stop you making a counter-offer (longer period before agreed sale / re-mortgage and / or a reduced sum for full and final......)

Thanks BazzaS for your very prompt reply.

The points that you have raised a very valid. I must confess that I agree with you that the terms of their proposed consent order are very vague. I also agree with your comments that the claimants will not receive £120k from my share of the equity as the total gross equity is only going to be about £86K!!! Having re-read their offer the actual wording, the proposed order is as follows:

"Our clients are willing to agree a sale order suspended on the following basis:

1. You pay our clients £100 per month by standing order commencing 01 July 2017 ("the Monthly Instalment Payments");

2. You pay our clients a payment of £1,000.00 to be paid to our client by 23 June 2017 and thereafter annually by on on 23 June each year ("the Annual Lump Sum Payments");

3. The level of monthly and annual payments shall be reviewed annually and you will be required to complete a means questionnaire relating to your entire household income including your spouses income upon written request by our clients at each anniversary of this agreement;

4. In the event of default in payment of either the Monthly Instalment Payments or the Annual lump sum Payments our clients shall be entitled to an order for sale without further recourse to the court;

5 Our clients will accept £45,000.00 in full and final settlement of their action against you excluding any Monthly Instalment Payments and Annual Lump Sum Payments paid on condition that payment is made in full by or on 28 June 2018 ("the Settlement Sum"). If payment of the settlement Sum is not made in accordance with this timescale you will be required to continue to pay the monthly Instalment Payments and the annual Lump Sum Payments until the entire judgment debt awarded to our clients is paid subject to the terms of this agreement"

The offer was available until 3pm on 21 June.

I am not sure how this will change your reply BazzaS (if at all).

I am one of 9 defendants although the claimants are only taking action against 2 of us - The other 7 defendants have either declared themselves bankrupt, gone out of business, or made repayment agreements with the claimants. There is some question about the actual amount of the judgment debt costs as it would appear as though the claimants are trying the claim all of the previous High court costs (rather than just my share of 1/9th). They are also attempting to claim all of the costs from my fellow defendant (who is the main defendant in the case).

My fellow defendant has also provided me with a copy of an email in which the claimants previous solicitors stated that if the claim (and costs) is paid by that defendant then the claimants would not pursue any of the other claimants for payment. Although, as far as I aware, this defendant has not made any payment, this raises the following questions:

1. What would happen if the other defendant pays the judgment debt in full or by partial payment?

2. Would the claimants reimburse me for any payment made should the other defendant pay the debt in full or make a partial repayment.

3. Why are the claimants claiming the entire costs (and interest) from me and not just my proportion of the costs?

4. Why are the claimants pursuing me for payment when they have intimated that the other defendant should pay the entire judgment debt and costs?

I have written to the claimants solicitors indicating that I may be prepared to accept their offer but only subject to receiving their satisfactory replies to the above points. Needless to say, I have not received their rely.

Any advice you can provide will be gratefully received.

Monkeymad

What they have proposed is much more clearly drafted than the "interpreted" version of it that you posted as your points 1-4).

The downside (had you agreed) : you are accepting they can go for an order for sale if you default.

They can apply for an order for sale currently, but it is by no means certain they'd be granted it.

Exactly BezzaS.

This is my dilemma.

I need to decide whether to agree to their offer and "stick my head in the guillotine" waiting for the blade to drop following any future possible default or delay in payment.

OR

Take my chances at the court hearing.

I am not a gambling man and, at the moment, I am not entirely sure what to do. I was hoping to have found a buyer for my home by now so that i could provide details to both the claimants and the court on the basis that the hearing could be adjourned or, at the very least, an order for sale suspended to allow the sale to proceed. Also, this may have had the added advantage of paying the claimants less as my share of the equity (after costs etc) will certainly be less than £45k.

Alternatively, I could accept the agreement and make the payments required as this will prevent possible homelessness, and (excluding the initial £1k payment) the monthly payment of £100 when added to the amount that I currently pay for my mortgage will be somewhat less than the cost of renting a 2 bedroom property in my area. Also, this will provide a "breathing" space for me to carry out some decorating and other work to my home which hopefully may entice a future buyer to offer a realistic sum for my home rather that be rushed into accepting the first offer made whilst looking for new employment with a higher salary that will help provide flexibility with regard to obtaining a mortgage

Again, I am really not sure what to do.

Monkeymad

Thread moved to the appropriate forum.....Home Repossessions

Regards

Andy