Successful Settlement on Property Investment gone wrong, avoiding Insolvency.
This case involved an aggressive lender and a large property shortfall which the client could not repay. Understandably the client was extremely stressed when they approached Bell & Company as they faced the prospect of losing their home and job.
The client owned their own home took a mortgage to fund a holiday home in the Republic of Ireland. Due to the property market crash, the loan on the client’s property became more than double the value and unfortunately, over time the mortgage repayments stopped due to unaffordability on the client’s part accumulating large arrears.
A solicitor was appointed on behalf of the lender in a bid to recover the outstanding debt. The property was then forced into sale as the arrears could not be paid. After the sale of the property, our client’s shortfall was in excess of c£170,000.
Bankruptcy not an Option
Due to the nature of the client’s occupation, Bankruptcy was not an option, coupled with the fact that the client had limited funds to settle the debt in full it seemed like their life was hanging in the balance, with the possibility of losing everything until they approached the team at Bell & Company.
As a formal insolvency route would have a had a detrimental effect on our client’s livelihood, a pre-insolvency strategy was implemented to best suit the client’s situation.
Very quickly, our specialised debt strategists commenced negotiations with the lender and the lenders appointed legal team with a view to settling the outstanding debt for a minimal amount.
After a thorough financial review of the client’s situation, a case was presented to the creditor and an amicable agreement on repayment that yielded the best result for both parties was agreed.
We settled the outstanding shortfall of £170,000 for a mere 6%
The benefit to the client was immeasurable as they were able to continue to work and get on with their lives whilst settling a debt for a minimal amount to rid themselves of the stress and burden it was causing.
Bell and Company were able to agree this full and final settlement for the client due to the relentlessness of the team in negotiating, dedication to the client and skill in presenting the financial situation to the creditor. We solely work for the benefit of the clients which is where our strength lies as pre-insolvency specialists – we can offer informal arrangements that insolvency practitioners cannot. This was a great conclusion for our clients and of course, hardworking team and we are delighted that burden is now lifted from our client’s shoulders.