15k debt - how to request or negotiate write-down

[AlmostFree]

Hi all,

I have an outstanding 15k unsecured personal loan with a bank - I defaulted in 2010 when the recession hit - I was self-employed. I negotiated a halt to the interest being accrued and have had no interest applied to the debt since 2010.

I was paying €50 per month against the debt, then reduced to €25 per month but stopped these payments when I was made redundant in 2015. I haven't worked since. I am now receiving long-term disability due to an accident which resulted in a serious injury. I have had two operations to date, and don't know how or if I will ever work again.

I am single, don't own a house, have no savings and my only asset is my car is worth €1,800. My medical expenses are approx. €220 per month. My income is solely the long-term disability allowance and I have moved home to live with my elderly parents.

I am receiving solicitors letters which are very confusing - I received two letters saying "we enclose a copy of the judgement obtained against you" but there was nothing attached in either letter and I've had no notice of any judgement or court proceedings.

The latest letter a few weeks ago says they have "received our client's instructions to commence Examination Proceedings". It's a form letter, not signed by a person, just the company name. It includes a Statement of Means form which I have filled out in the past.

My question is how do I negotiate a write-down on the outstanding debt with the bank as the many many years of stressful threatening letters is wearing me down. My ex has offered me 6k to pay off the debt as he feels responsible for the accident that has left me unable to work. It's a one-time offer to be used against the loan, not for me personally.

Should I write to the solicitors to make the offer or should I write to the bank? Would anyone know how to word this, or should I ask a solicitor to write on my behalf?

Does it matter that the original overdraft agreement was granted for a period of 30 days only (as per the printed agreement that I signed) in order to pay some suppliers in advance of a client paying me, but after the 30 days, the overdraft was never called in - it remained at €9k, and as my work dried up due to the recession, I used the overdraft to pay my rent and bills. Does it matter that the bank didn't stick to the 30 day term as outlined in their own document?

This is not an attempt to wriggle out of paying what I owe - my total debts from the recession were 40k and I have paid all except this last one. My current health issues mean that I have no idea whether I will ever work again. This last nugget of financial stress is unbearable.

Any advice or suggestions would be very gratefully received.

 

[Gerry Canning]

With you living on disability ,nil assets ,you are not in a position to repay, so from what you have posted pay nothing more .
these solicitors letters are (threatening) but generally have little nuff substance.
the judgement may well have happened but all that means is that Mr Bank has confirmed you owe Mr Bank k15, and since you have nil assets that means very little.
(examination proceedings) means little .
When they next write explain your position , fill out income forms and send it off registered, keep copies of everything.
Do not take ex,s k6.

Once they accept your position they should back off.
By paying the 50 a month you encourage MR BANK to keep on and on and on .Stop paying for now and await their next letter.
Do not take phone calls , do not identify yourself to any phone caller.

In short , force Mr Bank to work and to listen.Once they listen you should get closure.

If you go to MABS they will sort.

 

[TLO]

Plus One on Gerry Canning's advice to go to MABS. In addition to "informal" solutions, MABS can organise a "formal" solution, a Debt Relief Notice (DRN) which would have the effect of putting this to bed within a year.

 

[demoivre]

I am single, don't own a house, have no savings and my only asset is my car is worth €1,800. My medical expenses are approx. €220 per month. My income is solely the long-term disability allowance and I have moved home to live with my elderly parents.

With little income and no assets to attach there is little they can do. Tell them the situation you're in and see what their next move is, other than huffing and puffing.

 

[Gerry Canning]

Never forget .
They are trying to get money from you that you from your post you just do not have . So tough (on them).

 

[AlmostFree]

Thank you @Gerry Canning @TLO @demoivre - I've never used a forum anywhere before and you have no idea how much it means to hear sage advice when you're in a dark hole. I know there are people in much worse situations, losing their family homes, so I appreciate your time immensely.

I do have a couple more questions if you have a spare moment -

1. Wouldn't it be better to offer the bank the 6k in full and final settlement so that the issue is resolved quickly, if they accept? I can still send through my statement of means showing that the money isn't mine, but a kind one-time offer from an ex who would like to help to resolve a stressful issue.

2. How does a write-down affect my ICB rating? It is ruined already because of the this debt and the other debts that I've paid off. Isn't a write down better than a full default?

3. If a write-down or full default is registered on my ICB file, when does this expire? I have researched this but seem to have come up with 3, 5 or 6 years depending on where I look on-line.

Thank you again for your time.

 

[Gerry Canning]

1. Before they will accept the k6 , they will still put you through (statement of means) etc .
In offering k6 now you just (feed the greed) .
Banks are jackals by nature .
Once you show the k6 , it will be like the 50 per month ie lets see we they squeeze more.
In short ,write , explain your position and let them come back to you .
Because you will be showing nil net income ,and they cant get more ,you may well have wait for their response.

2+3. Your credit rating (ICB) is already compromised and will stay so either by default or write down for 6 years .It makes little difference whether default or writedown.
+ with your income , do you want debt?

 

[PaddyBloggit]

You'd be foolish to give them the €6k.

They'd take it in a flash and your ex. will be down €6k.

You have no money. They can't take what you haven't got from you.

Go to MABS. Get it sorted once and for all but don't give them the €6k.

After that if your ex. wants to give you the €6k for a fresh start, then by all means take it then.

It will mean more to you than being swallowed up by a debt you cannot afford to pay off.

And by the way, fair play to your ex. for offering you the €6k.

 

[demoivre]

The worst that can happen is that the bank will go to to the district court to try and get an installment order against you ie they will try and enforce the judgement. If they know you have no income this is pointless as a judge will also see you have nothing ! There is little the bank can do so they may well go away quietly! However if you want closure go to MABS and see what they say, particularly in relation to a DRN. Tell the bank's solicitor you're going to MABS. I personally wouldn't mention the €6k to MABS until you see what they say.

Your concerns about ICB are largely moot. The details remain for 5 years but, given your circumstances, you are unlikely to be looking for credit anytime soon. You have a new address, if down the line you're back on your feet and are looking for credit !!!