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Angie
New Member
United Kingdom
81 Posts |
 Posted - 03 June 2009 : 21:06:52
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Bank/Credit Card Company
I am puzzled as to why the banks and credit card company rejected my lower payment when I lost my job last year and only had jobseekers. They refused my lower offer despite my advice from a well known debt advisor ... so here I am having gone bankrupt and they ended up with nothing.
Where was the sense in that.
If they OR write the debts off after 12 months once discharged where is the logic in refusing the lower payments initially offered. Surely half a loaf was better than none? If someone owes you £10.00 and you refuse to accept £5.00 how was going bankrupt going to get them the full amount. |
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Sparkle83
Junior Member
258 Posts |
Posted - 04 June 2009 : 01:20:12
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I suppose maybe they assume they'd get more out of the OR selling your assets, or an IPA? Either that or they figure you'll just cave and pay the higher payments.. Either way, I never feel sorry for them when they get nothing...
Weeks of BR
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 04 June 2009 : 10:47:40
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This has also happened for people who have been refused an IVA by their creditors. They would have paid a certain amount back (maybe not much) but as it was refused the creditors have received a lot less when the person declared BR.
I think that there was a time when creditors used to accept quite low IVA repayments but are now pushing for DMPs as the get their full amount back. This may be one of the reasons that more people are now declaring BR as they have a low DI, which means they may not get an IPA and it would take a very long time to complete a DMP. |
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Jane.l
Average Member
511 Posts |
Posted - 04 June 2009 : 11:02:08
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| This happened to us, our major problem was the secured loan, yes we borrowed the money, but we took it at a time when we were really desperate and just wanted to reduce our monthly outgoings. We realised the debt was too much and wanted to sell our house and move to a cheaper one (even though it was only a 3 bed terraced house, nothing extravagent!) We wanted to just move the loan over to the cheaper house and because the mortgage was cheaper, we could afford to carry on paying everything, although things would have been very tight for 25 years, we were prepared to do it! However, the secured loan company refused this, we then said ok, we would propose an IVA, sell the house (cash buyer waiting) and pay one third off the secured loan and try an IVA for the rest of the shortfall and our other debts but they refused to let us sell the house. They were just awful to deal with. In the end we gave the house up and went bankrupt, all the creditors got was a big fat zero and I just cannot feel one iota of sympathy for them. Afterwards I spoke to someone from the secured loan company and he did admit, with hindsight, that they should have let us sell the house at that time but too late now. All in all, they lost over £36,000 when they could have had around £16,000 on sale of the house and whatever dividend if we had got a successful IVA. |
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Angie
New Member
United Kingdom
81 Posts |
Posted - 04 June 2009 : 16:58:25
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I wonder what our experts think of this Jane I ... I know little abut houses as I have always rented but surely this is pure madness what they did or am I missing some logic on their (creditors part) I cannot think what?
This has surely created a lot of work for the OR's as more and more people go bankrupt because the creditors back you into a corner. All I got from mine was your offer is not acceptable ... and can you get the money from relatives then what about the next month do I go back to the relatives again and again. They even made me pay my month's rent money as they bullied me over the phone. |
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Jane.l
Average Member
511 Posts |
Posted - 05 June 2009 : 09:19:16
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I really cannot understand their thinking, they would not agree to any sort of reduced payments whatsoever, all they wanted was the full contractual repayments even when we explained that we could not afford that. They told me to get rid of my car to free up some money but how would I get the children to school and get to work for 9am which was in another town?? They also wanted us to borrow more money to pay them Idiots
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Bank/Credit Card Company I am puzzled
