Minimum payment to clear debt?

[chas20]

I have £15,000 owed to M&S Money and £5,000 to Clydesdale Bank and £600 to an accountant. I tried for years to repay the larger debts but am now 70 and have no chance of clearing this debt. I have no assets, car or house and only a pension as a regular income. I either declare myself bankrupt or find some money to pay a small % of these debts. Just wondered if anyone has experience of how small a % these companies will settle for. Shoosmith are chasing the M&S debt and threatening court action. Unfortunately although they related to some time ago, the last payments are not more than five years ago, so I can't claim them to be un-recoverable.

 

Any thoughts welcomed.

[Haven]

Have you done a budget sheet you could also contact stepchange who are very helpful.

[Annie71]

Ok. I think a bit of detail, are they loans or credit cards and when were they taken out?

When exactly was the last payment to the two credit debts.

 

Think carefully about BR as you do own your home,

[sequenci]

Think carefully about BR as you do own your home,

 

They don't

 

They *may* go for a low percentage - especially if you make your position clear; and that you are seriously considering bankruptcy. As it goes, bankruptcy might be a chepar + easier and faster option anyway. Do you know much about it as a process? Do you live in England, Wales or Scotland?

[chas20]

Hi Annie71 & Haven

 

Thanks for the comments. I don't own my own home and I live in Scotland. I have read the outlines of Sequestration but no personal experience so far. I have emailed StepChange today - hadn't hear of them so thanks for the contact.

[Desperate Daniella]

Hi chas and Welcome to CAG!

 

I think Stepchange is a good idea.

 

As you have no assets and your only income is your pension it's clear they won't be able to recover the lump sums by starting bankruptcy proceedings against you. You could do this yourself, as sequenci says above.

 

Unfortunately I don't know much about M&S Money or Clydesdale as I haven't dealt with either of them, so it might be worth your reading other threads on them to see how others have handled them.

 

Are the accounts for overdrafts or credit cards?

 

DD

[chas20]

Thanks DD, the accounts were credit cards which I was using to keep a business afloat. Should have gone bankrupt years ago and it would have been behind me now. I 'sold' the M&S debt to a third party 'Credit Release Me' as they convinced me they could purchase debt legally. They are now out of business and the latest set of Laywers insist the document I have has no legal basis. Previously the other Debt Collection agencies backed off when I showed them the documents. It looks as if I might have been conned.

[Desperate Daniella]

Hi chas,

 

When you say you 'sold' the M&S debt to a third party, what do you mean exactly? And what documents did you get from 'Credit Release Me'? (I haven't heard of them.)

 

Have you ever asked for the agreements for either of these accounts?

 

DD

[renegadeimp]

Only the current owner of the debt can aell it. Not the debtor.

[Desperate Daniella]

That is what is confusing me.

[sequenci]

I 'sold' the M&S debt to a third party 'Credit Release Me' as they convinced me they could purchase debt legally.

 

Sorry, you were had there.

 

A few others have tried this, and failed. Including our old friends the Rankines:

 

http://www.bbc.co.uk/news/uk-england-stoke-staffordshire-19635797

[Desperate Daniella]

I'm obviously being dopey this morning. I still don't understand how the Rankines or anyone else buys these debts. Did they actually give people money for them, or did people actually pay them a percentage of the debt on the understanding that the debt would be the responsibility of the debt buyer? Because if they are debt 'buyers', they should have been the ones paying.

 

As I said, I think I'm being dopey.

[Annie71]

Sorry about the house comment I misunderstood.

 

With the rankines you paid them a fee to take over your debt. I personally know someone who almost did this.

 

One question , was the m&s credit card ever just a chargecard.

 

One option might be to play hardball. Stop paying and say make me BR if you think you're hard enough.

 

Sorry if this is wrong for scotland.

[Desperate Daniella]

Thank you for explaining that.

 

So essentially the sale/purchase element is turned on its head in that the 'seller' pays, rather than gets paid, and calling the Rankines debt 'buyers' is a misnomer.

[chas20]

Looks like I was the 'dopey' one as I did pay a fee to Credit Release Me to take over the debt. I should have remembered the maxim "If it seems too good to be true it usually is"

[Desperate Daniella]

I'm sorry to hear that. 90% of the time I'd agree with your maxim, but 10% of the time something may be absolutely wonderful. On one of the most important decisions of my life, probably THE most important, that maxim was quoted to me, and I am sooooo glad I stuck to my guns. It was good and it was true.

 

Anyway, we all do dopey things from time to time, and I've certainly done a number myself.

 

Firstly, I think you should ask for a copy of these credit agreements. There is a template you can use - Green Library link at the top of the page. Let's see what they've actually got and we can take it from there.