In 2017, a husband and wife came to us with a shortfall debt matter owed to a leading UK Bank from a commercial property that was voluntarily surrendered in 2014. This property was initially purchased with a commercial loan in 2006. However, in 2008, with the onset of the economic crash, they struggled to maintain the loan repayments.
As the net proceeds received by the Bank were less than the property sale price and as the husband was now declared bankrupt, the wife was therefore then solely left with a shortfall liability totaling £247,797.
In 2015, as a result of the incredibly high levels of stress that both were experiencing, the husband suffered a severe brain haemorrhage, which resulted in him becoming severely disabled.
Upon reviewing the wife’s financial information, it was obvious from the start that she had no repayment capacity for repaying this shortfall debt.
Subsequently, it was time to mediate with the bank directly, in which they requested a monthly repayment proposal to pay back the amount in full over many years. However, with little or no income, this was simply not an option.
As a result, we proposed a full and final settlement offer in respect of the outstandingdebt. Having borrowed funds from friends and family, our client was in a position to offer a full and final settlement totalling £7,000, which would go towards the total shortfall which was £247,797. The bank accepted our offerwhich was a fantastic result for our team at GDP Equity Experts but more importantly it was a fantastic result for our client, meaning that they could now move on with their lives without this grey cloud constantly hanging over them.
This case is an example of what can happen when someone asks for help when it comes to debt.
At times it appears to be very easy for people to say “Just go bankrupt”, however yet again our team at GDPEE demonstrate there are other solutions available.
Creditor: Leading UK Bank owed £247,797 (unsecured debt after commercial property sale)
Proposed Solution: Full and final settlement proposal
GDP Mediated Settlement: Creditors accepted £7,000 in full and final settlement (equating to 2.82p in the £)
Settled: September 2018
What we can do to help?
Since 2010, GDP Equity Experts have helped hundreds of families, individuals and businesses deal with debt related issues. We have been leading the way in this regulated area over the last 8 years and have particular expertise in helping people deal with crippling debt related issues.
Debt continues to be a widespread problem in society, and our team specialises in helping those affected by loan sales to Private Equity Firms and negative equity positions on properties and property portfolios.
GDP Equity Experts know what is expected and how to get you to where you want to go. We WANT to hear from you today because we WANT to help you today.
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