can i negotiate with banks with lumpsum

[Us The People]

yesterday i was going bankrupt, today my girlfriend offered to lend me 30k to help me pay off some loans, does anyone know if i can negotiate with banks to reduce amount of loan in exchange for a lump sum to settle the loans without doing an iva.

 

i have barclay loan @ 13400

another barclay loan @ 12500

barclays overdraft @ 2500

corporation tax @ 6700

vat @ 1500

advertising company @ 1200

 

any help would be great, thankyou.

[Tawnyowl]

Wow,nice offer. If This is the way you decide to go, i suppose your creditors would probably accept some offer in full and final settlement of your debts. Start low, very low. Be careful though , sometimes a few months down the line some dca may be asking for the balance. Make sure everything is watertight before paying anything.I will try to find some more info.Hopefully some people on here will advise you as well. Have a read of this,mmm. Be careful.(Borrowing From Family or Friends- Before you borrow any money from a close friend or loved one you must take into consideration the effect the loan will have on your relationship. If you think dealing with a bill collector is an unpleasant experience, imagine feeling that stress or discomfort at every family function for the next several years. In the best case scenario you are able to repay the loan and everyone is happy. The worst scenario (which happens more often than people think) would be your inability to repay the loan and ruining your relationship. Good luck,Tawnyowl.

[loobyloo85]

Hi

 

Yes by all means you can offer this lump sum to your creditors. It is a good offer. Usually the minimum lump sum amount to offer to your creditors is usually 15-20% of your total debt. I would suggest writing to your creditors, explaining your financial situation, detailing how much you have to offer as a lump sum to your creditors. You could then list your debts, and total debt to each creditor and explain that you are wanting to offer this amount on a pro rata basis to each creditor to make it fair.

[Us The People]

thankyou so much for your kindness and time Tawnyowl and loobyloo,

 

sorry for my ignorance but what is pro rata in relation to the amount i pay a particular creditor,

 

thankyou for advice re money from friends, in this case im so lucky to say my friend will soon be my wife. paying her back will be easy, shes now in charge of the money lol

[Tawnyowl]

Pro rata means apportioned. So in my mind if you offered perhaps 20% of your total debt back to each creditor as a full and final settlement it would be 20 pound in the hundred. So for a start you would offer advertising company--20% of 1200 =240.00, Barclays overdraft 20% of 2500=500.00, Barclays loan, 20%of 12500=2500.00, Barclays other loan 20%of 13400=2680.00, i dont know about the VAT or Corporation tax. Good luck Tawnyowl.

[Us The People]

thanks again Tawny owl, i will be writing to creditors today, i tried to click on link for full and final settlement but only went to home page, can you please advise the best way to make my offer (if accepted) a legally binding one, so i dont have them come back looking for more money later,

 

as soon as i can use my card again i will donate to this site, your brilliant,

this site is the future, not just for consumer things but "maybe" in the future a starting point for a fairer britain with regards to peoples political, environmental concerns having at last a voice.

[Tawnyowl]

Glad you feel happy about the site. We all came on with some problems, which with help and advice we managed to pull through. And stuck around after to try to help other people. Seems only right. Now the letters to offer full and final settlement. Have a look at this. Debt Factsheets - Full & Final Settlement offers Remember to keep copies of offers made. Also try not to deal with the banks, dcas on the phone, only by letters.You can request to be dealt with this way if they hound you. There is even a telephone harrasment letter to demand this if needed.Best wishes Tawnyowl.

[Us The People]

thanks again Tawnyowl, have written to lenders with request, will keep informed, not holding my breath lol, trying to get barclays to see the light has normally been a gloomy experience, HOOT if you think Tawnyowls great, HOOT HOOT HOOT,

[meerkatsmimm]

Hi UTP,

 

glad you've found this site - its invluable to myself and mr meerkat, we've touching £75k of unsecured debt and with the help of the guys (& gals) on here we're getting through ok!

 

firstly I'd be very careful with you offers - its worth paying a solicitor to send the final letters & the actual payments. its best that they come from a 3rd party. Get the solicitor to write the letter/paperwork that goes with the payment as this will keep things right for you and give you something to come back to should there be any comeback from dca's.

 

The solicitor will probably cost a bit £500+ but it is well worth the expense to know you are getting things done right. Make sure the creditors are going to set your credit file as showing the debt as settled at least.

 

With regards the tax & VAT, i'm not sure you'll be able to reduce those - but it's worth a shot to find out.

 

Keep your chin up - looks like the future mrs UTP is a great help to you through all this so make sure to keep her sweet! lol;)

 

Keep us updated on whats happening.

 

meerkat

[Worried liverpool 1]

Thanks for the info about fact sheet

 

Meant to send thanks about fact sheet to this message