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If you have £10,000 of debts and you can get a loan for
£5,000 (which will also reduce your monthly payments
from, say, £600 to £300 per month) you need to gain your
creditors approval (do not get the loan until you have
the vast majority of creditors behind you). You should
send letter number 1 (on previous page) before sending this letter.
The settlement figure that is returned to you is your
starting point: negotiate down from that figure, say,
50% if you have genuine debt problems and the settlement
is being paid by a consolidation loan.
A creditor, for proof of other creditors settlement
figures, may ask you to forward copies of each creditors
settlement amount, which would be acceptable.
You need to be strong in dealing with creditors that you
are trying to get to reduce settlement figures.
Sometimes it’s the smallest creditor that will not
shift: remind them that if they did sue you the county
court judge might not be best pleased with a creditor
that ignored a genuine debtors plea for a fair
resolution of a debt issue.
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Dear Sirs
Ref. Account Number: 12345 Settlement Figure:
£2,000.00
(Your name and address)
Mr J Smith, 1
Avenue Road, ANYTOWN AA1 11A,
Your letter of the (22 Feb 2000) stated that the
current settlement figure to discharge the
account in full is (£2,000.00).
The reason I requested the settlement figure
from you, and my other creditors, is to take out
a consolidation loan (or accept the help of my
family…) to settle all other debts.
The total amount owed to creditors is (£10,000)
of which I can pay every creditor (50%) of their
settlement figure. You will receive (£1,000.00)
approximately four weeks from the date of this
letter. The amount needed to settle all debts,
(£5,000.00), is the absolute limit of my
capability with no other options available other
than individual county court action, and
possibly some form of bankruptcy.
Please consider my sincere offer and accept my
apologies for this involved process. Please send
me a letter confirming your acceptance of my
offer. If no confirmation has been received
within 14 days of the date of this letter I will
assume your favourable acceptance of my offer
and make payment to you as described above.
Yours…. |
5. Payment of Reduced Settlement
When you receive the confirmation of acceptance of your
reduced offer you need to send a letter with your
payment.
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Dear Sirs
Ref. Account Number: 12345
(Your name and address)
Mr J Smith, 1
Avenue Road, ANYTOWN AA1 11A,
Thank you for your letter of (22 Feb 2000), in
which you agreed to the reduced settlement
figure of (£1,000.00) in full and final
settlement of account number (12345).
My cheque for £1,000.00 is enclosed.
(if you did not receive confirmation of your
offer use the following paragraph in place of
the one above)
Further to my letter of (22 Feb 2000) that
said,"The total amount owed to creditors is
(£10,000) of which I can pay every creditor
(50%) of their settlement figure. You will
receive (£1,000.00) approximately four weeks
from the date of this letter. The amount needed
to settle all debts, (£5,000.00), is the
absolute limit of my capability with no other
options available other than individual county
court action, and possibly some form of
bankruptcy.
Please consider my sincere offer and accept my
apologies for this involved process. Please send
me a letter confirming your acceptance of my
offer. If no confirmation has been received
within 14 days of the date of this letter I will
assume your favourable acceptance of my offer
and make payment to you as described above."
As
you have not responded to my letter, I assume
your acceptance of my offer and I enclose my
cheque for £1,000.00 in full and final
settlement of account number (12345).
Yours …. |
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