We, at GDP Equity Experts, would 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 2016, a client came to us with a negative equity challenge in the region of £98,000. On a personal level, the customer and his wife who owned the property had agreed to divorce, which compounded the financial challenge they both faced, as they felt it was insurmountable.
The property was located in Co. Down with a balance outstanding on the mortgage totalling approximately £183,500 with its market value in the range of £85,000.
On review of the information, our team proposed a consensual sale of the property to the bank and subsequently we appointed an agent to sell the property ASAP. After six months, the property was sold for £85,000, leaving the couple with a shortfall of £98,500.
At this stage, typically the bank would ask the client to enter into a monthly repayment plan to pay back the full amount owed over a long period of time, however with them running a deficit each month this was not something we would have been comfortable with.
When a person finds himself or herself in this position they have three options;
1. Go bankrupt
2. Look at an Individual Voluntary Arrangement
At GDP, we normally promote mediation as it’s a very good way to informally settle these kinds of positions with banks and keeps the client out of the formal insolvency process. We, therefore, proposed a full and final settlement amount in respect of the outstanding debt. Having borrowed funds from friends and family, our clients were in a position to put forward an offer of £2,000, which would go towards the shortfall of £98,735. Thankfully, the Bank accepted this. This was another fantastic result for our team at GDP Equity Experts but more importantly it was a terrific result for our clients. They can now finally move on with their lives.
What we continue to find over the years is that many people are reluctant to ask for help because either they are embarrassed to talk about it or they don’t believe a debt write off is achievable.
Everyday, we are continuing to demonstrate that these kinds of outcomes are absolutely possible, but the starting point rests with the customer asking for help.
Creditor: Leading UK Bank owed £98,735 (unsecured debt after property sale)
Proposed Solution: Lump sum settlement of £2,000.00
GDP Mediated Settlement: Creditors accepted £2,000 (equating to 2.03p in the £)
Settled: Accepted by the Bank in June 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.
We would like the opportunity to share this with you. As a result, our team are more than ready to engage and assist if you have been affected by this or you have any other property debt related issues.
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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