For the last seven years we have met hundreds of people who have found themselves in huge amounts of debt. A level of debt that they will unfortunately never be able to pay off in full and largely down to the property crash of almost ten years ago. It is quite incredible that there continues to be thousands of people from right across Ireland and the UK who have yet to deal with this issue.
The banks have facilitated this problem and we must say exacerbated it. Quite often a lot of these loans should never have been approved and over the last number of years their reluctance to work with borrowers and engage on their positions has meant the debt has drifted although not disappeared. The collateral damage in all of this to the person with the debt is overwhelming and comes at a huge cost to them personally, their families and their businesses.
So what options do I have?
There are only three options to resolve any debt problem. Two reside in the formal approach to dealing with this and one being the more informal approach. Since 2011, our office has settled hundreds of cases using the informal approach to dealing with this matter in the form of Mediation. This method is now very effective and as long as your adviser has a track record in getting results, is regulated by the appropriate body to represent you in this regard, then we would certainly advise you considering this approach.
The other two formal approaches to resolving these issues lie in the shape of (1) Bankruptcy and (2) Individual Voluntary Arrangement. Both of these options again are very effective and our advice at all times is that, as a borrower, you need to make it your business to educate yourself on all of the options, the pro’s and cons of each before deciding what is the best way to move forward for you and your family.
Case Study – Mediation
Debt Mediation with leading UK Bank following sale of property
in January 2016, an individual came to see us with an Investment Property that had become too difficult to manage and subsequently sustain. As a result, this property was repossessed by a leading UK Bank, and sold at a loss. The loss from the sale of this property totalled approximately £104,000. As our client had no means of repaying this debt, this was understandably a very anxious and stressful time for not just the client but also for their family.
Our first aim during our initial free consultation meeting was to give reassurances to the client that solutions could be easily achieved to settle this matter. Our client was actually unaware that by simply attending this meeting they had already taken the first step on the path to debt recovery. This first step was simply to ASK FOR HELP!
During our meeting, we worked with the client and devised a workable strategy. Once agreed, we started to put the wheels in place to transport our strategy into a solution which was direct mediation with the Bank. As there was no disposable income available, our overall strategy was to offer the Bank a lump-sum settlement. This was being very generously provided by family members.
Before, we could directly mediate with the Bank; our client had some personal matters that they had to resolve first. Once these were resolved, the client recommenced proceedings with us in October 2017. Over the following few months, we worked closely with the client to ensure all required information and documentation was provided to the Bank. In March 2018, we then offered a lump-sum settlement to them. After just over a month of negotiations, the Bank agreed to a full and final settlement of £8,500. Our client was delighted with the outcome which was a fantastic result for GDP, but more importantly for the client.
Case Study Summary
Creditor: Leading UK Bank owed £104,438
Proposed Solution: Full and final settlement proposal
GDP Mediated Settlement: Creditors accepted £8,500 (equating to 8.13p in the £)
Settled: May 2018
What we can do to help?
Our proven track record here at GDP Equity Experts speaks for itself. We are fully regulated by the Financial Conduct Authority and over an 8 year period, we have helped hundreds of families find the most appropriate and workable solution to their debt related issue.
We take pride in our first-class advice and assistance that we offer to our clients. We will work closely with you from the very start of the process as we know what is expected and how to get you to where you want to go.
It is quite simple; we WANT to hear from you today because we WANT to help you today.
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