RobSheffield Posted April 28, 2006 Share Posted April 28, 2006 I now work for a large finance comapny, and keep hearing about these companies who will write off 95% of your debt. How?! Are they going to rip these people off? (my gut says yes, they are ) Link to comment Share on other sites More sharing options...
baldy Posted April 28, 2006 Share Posted April 28, 2006 can they write off my mortgage?for me Link to comment Share on other sites More sharing options...
Mike Posted April 28, 2006 Share Posted April 28, 2006 declare you bankrupt so you can't get any credit for five years or whatever? Link to comment Share on other sites More sharing options...
Scoboblio Posted April 28, 2006 Share Posted April 28, 2006 I've heard this before..... like SonicSoop says I'm fairly sure they declare you bankrupt so a huge portion of your debts are written off..... might solve your problems in the short term, but you can probably forget about being lent money ever again! Link to comment Share on other sites More sharing options...
MARTIN R Posted April 28, 2006 Share Posted April 28, 2006 Must have serious long term implications for the victim I mean customer Link to comment Share on other sites More sharing options...
RobSheffield Posted April 28, 2006 Author Share Posted April 28, 2006 if im not mistaken bankruptcy now only stays on your credit file for 1 year...been reading some intranet resources at work, but my head hurt, and i stopped, so i may be a little bit adrift and no, i dont think they will write a mortgage off, be nice though Link to comment Share on other sites More sharing options...
TrickTT Posted April 29, 2006 Share Posted April 29, 2006 This only applies to unsecured debts, personal loans and credit cards and the like. If you can prove to the loan company that you have no means to pay your debt, they can, at their discretion, write off some or all of the debt. eg you have a £10,000 loan and £10,000 on credit cards. The debt management company contacts your lenders and says you cant pay, but will make a payment of £1,000 off each on your behalf now if the lender will write off the remaining balance. If the lender agrees you pay the debt management company £2,000 + a huge fee + interest over about 20 years. Option 2: phone up the lenders yourself and as long as you can make small regular payments they have to accept and drop the interest to almost nothing (0% in some cases) while you pay off the balance in full. The only downside is you will find it very difficult if not impossible to get any more credit for the duration of paying off the debt + 5 years. If you try this approach with secured loans (mortgage) they will repossess your house. Not paying council tax or water rates can result in jail time Not paying gas or electric will mean you get a prepayment meter and be charged double the usual price for the supply Link to comment Share on other sites More sharing options...
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