Challenging Funding Circle Debt

Discussion in 'Insolvency' started by Monty71, Apr 13, 2020.

  1. Monty71

    Monty71 UKBF Newcomer Free Member

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    Any help very much appreciated as just do not know how to resolve this issue as it's been two years now.

    A company that I owed with my now ex wife had a 67K FC loan with personal guarantees. The company went into Liquidation 2 years ago and as I understand it the debt is joint and several liability so FC are approaching us both for payment. We have since gone through a Divorce and the only equity either of us have is in the house we can't sell which has been on the market for 2 years. The house is also only in my name with my ex living there.

    I've communicated all of the above to FC and they don't seem to have a way to resolve this as I've close to an IVA if I have to pay it all in full.

    A question I had is, if I could co-operate with my Ex could we put in a Final offer settlement to them and somehow borrow the money as the problem still remains two years later?

    Any help Greatly appreciated. Steven.
     
    Posted: Apr 13, 2020 By: Monty71 Member since: Apr 13, 2020
    #1
  2. Gordon - Commercial Finance

    Gordon - Commercial Finance UKBF Ace Free Member

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    Could you do a bridging loan to get equity out of the house while you wait for it to sell?

    As an aside, unless your house is in an unusual place like out in the middle of nowhere or next to a motorway then 2 years to still have no sale means the price needs dropped.
     
    Posted: Apr 13, 2020 By: Gordon - Commercial Finance Member since: Jun 26, 2017
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  3. Mark T Jones

    Mark T Jones UKBF Big Shot Free Member

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    Could you put a final offer settlement to them? Yes. They can then decide whether to accept or refuse it (evidence that you gave the means may tempt them)

    can you borrow the money? In the current market? No idea. And it’s my business to lnow
     
    Posted: Apr 13, 2020 By: Mark T Jones Member since: Nov 4, 2015
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  4. Monty71

    Monty71 UKBF Newcomer Free Member

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    Thanks Mark. Yes, I could put a full and final settlement offer in however the PG was taking out with myself and my now ex so if I did that I would be paying off the debt myself. I was thinking that if my ex and myself could agree together 'we' could put a full and final settlement offer in etc.

    Getting the money is another challenge, however it's been two years and no progress has been made from FC, myself or my ex and I'm not sure it's going to go away.
     
    Posted: Apr 13, 2020 By: Monty71 Member since: Apr 13, 2020
    #4
  5. MBE2017

    MBE2017 UKBF Ace Free Member

    1,701 571
    Just to add, with the current situation, property price are probably going to take a severe hit in the next twelve months, or longer. With many looking at unemployment on returning from this pandemic, the knock on effects could be more severe than anything witnessed in our lifetime.

    No one knows for sure, but I would look at how much equity you potentially have, property could be looking at 25% or more reduction in value, only time will tell, some are forecasting even more.
     
    Posted: Apr 13, 2020 By: MBE2017 Member since: Feb 16, 2017
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  6. JEREMY HAWKE

    JEREMY HAWKE UKBF Legend Full Member

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    Are they still charging interest?
     
    Posted: Apr 13, 2020 By: JEREMY HAWKE Member since: Mar 4, 2008
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  7. Mr D

    Mr D UKBF Legend Free Member

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    They don't care which of you pays up they want payment - if you cannot pay they go after your ex. If she cannot pay they go after you.
    There is a property with equity - sounds like something they'd be interested in.

    If it can be sold - at this point its anyone's guess about housing market over next 12 months. So long as looking lower price.
     
    Posted: Apr 13, 2020 By: Mr D Member since: Feb 12, 2017
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  8. Mark T Jones

    Mark T Jones UKBF Big Shot Free Member

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    Funding Circle are an odd beast when it comes to collections - largely due to the way in which they fund their loans

    historically they have always favoured long-term rescheduling. At this moment it’s hard to say
     
    Posted: Apr 14, 2020 By: Mark T Jones Member since: Nov 4, 2015
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  9. Gavin Bates

    Gavin Bates UKBF Enthusiast Free Member

    664 133
    Hi

    In truth, the best way is to do a joint full and final settlement highlighting the points above about property prices and current state of the market.

    Regards

    Gavin
     
    Posted: Apr 14, 2020 By: Gavin Bates Member since: May 9, 2016
    #9
  10. Newchodge

    Newchodge UKBF Big Shot Free Member

    14,155 3,731
    If you do a full and final settlement in your name only they could then pursue your ex for the balance. It has to be in both names.
     
    Posted: Apr 14, 2020 By: Newchodge Member since: Nov 8, 2012
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  11. Monty71

    Monty71 UKBF Newcomer Free Member

    3 0
    Thanks Mark, have they historically accepted full and final settlement offers to resolve complex cases where even they don't appear to know legally where they stand. I would like to think that if both of us (my ex) could agree to working together and offering them say 30-40K, they would be interested in that as opposed purloining it for another few years when the economic situation is challenging now. Appreciate you input again.
     
    Posted: Apr 14, 2020 By: Monty71 Member since: Apr 13, 2020
    #11
  12. Mark T Jones

    Mark T Jones UKBF Big Shot Free Member

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    I’ve no idea. I’m simply reporting back from experience of others

    as I say your best approach here will be to demonstrate that you are able to raise that sum of cash and to put the offer to them
     
    Posted: Apr 14, 2020 By: Mark T Jones Member since: Nov 4, 2015
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  13. Jenny Julian

    Jenny Julian UKBF Newcomer Free Member

    8 0
    Just a word of caution that unregulated bridging loans could result in higher interest rates and default penalty clauses after the initial period and it sounds like you wont have an exit from a property sale within the short term a bridging loan implies. Do some research on bridging loan mis-selling and try and borrow from a regulated mainstream lender on a domestic mortgage which incorporates the FCA MCOB rules.
     
    Posted: May 27, 2020 at 5:17 PM By: Jenny Julian Member since: May 27, 2020
    #13