Full & Final Settlements

I thought I would tell you about a Full & Final case that I am at long last putting to bed.

December 05

TB from Somerset was in the following financial position:-

Marital Status: Single

Property Value: £210,000

Mortgage: £125,000

Equity: £85,000

Income: £1,800

Essential Outgoings: £1,410

Disposable Income:  £390

Unsecured Debts: £43,600

Minimum Payments £680

Therefore she was going down by -£290 pcm. She actually did not know that she was going down by -£290 each month, as the overdraft and the credit cards were absorbing it. Sure TB new she had debts, but thought she was on top of them.

We discussed many options for settling the debts and TB decided that she would sell her property and then settle the debts.

January 06

House went on the market.

May 06

Became unemployed, and had to borrow money from friends to keep up the essential payments.

August 06

Finally sold property.

Still unemployed.

CCJ’s starting to arrive.

£11,765 made available for me to negotiate with the creditors.

August 06 – Dec 06

Settlements

Creditor 1 £6,080 settled at £1630

Creditor 2 £1,950 settled at £520

Creditor 3 £29,500 settled at £6,200

Creditor 4 £6,070 still in negotiations

I am sure with more time and willing I could have settled lower. I have got to say it is a very long and hard fight, and certainly TB is happy with the results so far.

TB was able to pay a years rent up front. She has also at last managed to find work, giving her a reasonable income, from which she is also able to save some money each month. Credit rating is shot to pieces but she is almost debt free!