Owing over £60,000 Fred and Wilmer did not know what to do. Most creditors came back to us with an outstanding amount and gave us a month to finalise a financial statement without hassling the clients any more. But not all and we did support clients through this. We went through an income and expenditure with them and it showed they could afford around 300 per month to their creditors.
When Fred & Wilmer first came to see us Fred was earning a good wage. Wilmer had also been bringing in a good wage until recently, but had given up work because of illness. So they suddenly found themselves unable to pay all the bills they had previously been managing. They had a house with equity but already had one loan secured on the property in a panic they placed the house on the market thinking it was their only way out. They had eleven creditors to whom they owed over £60,000!
How we worked with Fred & Wilmer
We sat down with them and listed all their debts, then wrote to all creditors informing them we were assisting the clients.
We went though their options and they realised selling the house was not the only solution and decided to take it off the market.
Most creditors came back to us with an outstanding amount and gave us a month to finalise a financial statement without hassling the clients any more.but not all and we did support clients through this. We went through an income and expenditure with them and it showed they could afford around 300 per month to their creditors.
We finalised the statement and sent this to them, with most accepting the offers. Regular payments were made from the client to the creditors. We reviewed their financial statement after 6 months, updated their income and expenditure and sent out another financial statement to creditors.
For Fred & Wilmer this allowed a year with a manageable situation, without the stress of creditors constantly contacting them. This gave them the space they needed to realise that they did actually want to sell the house and clear their debts in full. For the creditors, they were still getting paid monthly and ended up getting their money after the sale of the house, without any unnecessary court action and costs.
This gave Fred & Wilmer the time they needed to plan their future. In the end they were able to downsize their property, and reduce their long term payments to enable them to live debt free, within their income.