Large Debts - Banks wont listen. What next?

My sister is in 100k worth of debt on unsecured loans. She became unemployed in March of this year and has failed to find employment since. She is still servicing all the debt and has informed the Irish banks of her current position and they have been more than accommodating, lowered her monthly repayments. The same cannot be said for MBNA and Halifax who refuse to reduce her monthly repayments. They have sent her out an income and expenditure form but when she filled it out they turned her down so she continued to pay them each month out of her savings. Her savings are now gone and they have sent her out another I & E form but she knows its a waste of time gathering up information for them as they will only turn her down again.

Should she just pay them what she can each month and ignore them and if push comes to shove just let them seek judgment against her?

Much appreciated.

Alwyn

100k unsecured debt.....what was she doing…and more to the point what was the bank doing lending that amount of money out unsecured. The bank cannot get blood from a stone so she should send them a letter outlining her income and her priority outgoings, and what she has left she will pay them off with it. If she gets a judgement then the judge will make the same decision that is unless she has got collateral to sell and pay them off.

The banks will get their judgements here. I suspect they will move quickly also.
I would be letting the District judge decide what can be afforded if anything.

Alwyn said:

they have sent her out another I & E form but she knows its a waste of time gathering up information for them as they will only turn her down again.

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How does she know it is a waste of time? It is far better to be seen to be doing everything to work with the financial institution even if they do refuse again.

Why is it better? The bank will rush to court regardless.

Time said:

Why is it better? The bank will rush to court regardless.

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but at least when it does go to court the judge will see copies of all her paperwork that she sent in to the bank etc and at least be seen to be trying to work out a solution to her problems, he can only look on her effort favourably

Judges are not interested in such efforts sadly. They do not see any such papers. Judges are there simply to decide what a person can afford to pay or not.

Your sister should speak with someone here

http://mabs.ie/

They provide a free service and can help.

Thank you for all replies. She has kept banks in the loop from day one and has keep in constant contact with them. She is hoping to not turn up in court and allow judgment be passed against her. I've also heard the stories of judges not looking at the paper work that has been put in front of them so what will happen if the judge demands she makes a payment she cannot afford?

She should try and sort this out with the bank and not let it get to debt collectors as she will end up paying them a lot more.

She should send the bank details of her income and outgoings and this will determine what she will have over to pay them. If the bank dose not accept this then they will take her to court and will have to produce the same details to the court as well.

The judge will make a decision on ther income and outgoings to what she will have to pay the bank.