We, at GDP Equity Experts, would once again like to share with you another debt related matter that was successfully resolved this week. We are absolutely delighted at this outcome as this has lifted a massive weight off our client’s shoulders and has enabled them now to move on with their lives.
In 2017, a husband and wife came to us with a property in significant negative equity. This property had a mortgage outstanding of £123,115. The property had a value of £56,000, leaving them in a significant negative equity position of approximately £67,115. On a personal level, the clients had a nominal income with a zero surplus income each month.
Upon reviewing the clients’ financial information, it was obvious from the start that they had no repayment capacity for repaying the anticipated shortfall. Our team proposed a consensual sale to the bank and we appointed an agent to sell the property, thus achieving the best sale price for the clients and for the bank. After a number of months, and in agreement with the bank, the property sold for £56,000 – just under a half of what was owed to the bank.
Following the sale of the property, it was time to mediate with the bank directly, in which they requested a monthly repayment proposal to pay back the amount in full. However, with little or no income, this was simply not an option. When clients find themselves in this position they have three options;
2. Individual Voluntary Arrangement
At GDP Equity Experts, we normally advocate mediation as we believe it is the best option not only for the clients, but also for the banks. In this case, we took the mediation step and proposed a full and final settlement offer in respect of the outstanding debt. Having borrowed funds from friends and family, our clients were in a position to offer a full and final settlement totalling £6,873, which would go towards the total shortfall which was £68,730 after selling costs. The bank accepted our offer which was a fantastic result for our team at GDP Equity Experts but more importantly it was a fantastic result for our clients, meaning they could move on with their lives.
This case is an example of what can happen when someone asks for help when it comes to debt. People are still reluctant to discuss the issue of debt, or find it embarrassing as they believe that they are the only people if this situation. But they are not alone. Many believe that a debt write off is impossible, so if this is you then read this case again, or check out some of our other success stories and find out for yourself that it is possible.
Creditor: Leading Irish Bank owed £68,730 (unsecured debt after property sale)
Proposed Solution: Full and final settlement proposal
GDP Mediated Settlement: Creditors accepted £6,873 in full and final settlement (equating to 10p in the £)
Settled: August 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.
This debt has included various debt related areas such as loan sales to Private Equity Firms, debt shortfalls following the sale of a property and general unsecured debt such as credit cards and loans.