Family Farm Rescued – A Full and Final Settlement Victory

After a loan sale, a vulture fund pursued our client for €87,000, the case dragged on to the extent that it took the client 3 years to decide to finally address his problem. His hand was forced by legal action threatening to secure the debt and lead to the sale of the family farm. The case was complicated by the ownership structure including a recent divorce.

Our client, like many others, was under the impression that the lender would not proceed with recovery action; we advised him he was merely rolling the dice and that this shouldn’t be a risk he would be willing to take.

What Was At Risk?

The debt in question involved:

• Our client,
• His ex-wife, and
• His elderly mother and father – who lived on the family farm.

The debt presented a significant threat, and our client was particularly concerned about protecting the family farm, valued at €400,000, which was owned outright.

Why The Client Came To Us

Our client was contacted by Solicitors working on behalf of the lender for the outstanding debt amount. Legal proceedings had also commenced for a judgment mortgage.

Through strategic intervention by the team, Bell & Company successfully negotiated a reduced Full and Final Settlement on the debt, totalling €35,000. This achievement not only resolved the debt issue but also prevented the implementation of a judgment mortgage. We would like to thank the commercial solicitors on the other side for their pragmatic approach with a view to saving considerable costs.

The Outcome

The negotiated settlement resulted in significant savings for our client, totalling €52,000.

We took a proactive approach to secure this favourable outcome. We instructed a new valuation of the family farm to be conducted, and extensive work was undertaken to highlight our client’s liabilities, showcasing the commerciality of the offered settlement.

The primary challenge was the unencumbered family farm, a crucial asset that needed protection. The team’s revised valuation and detailed asset and liability review played a pivotal role in mitigating the impact of this challenge.

Worst-Case Scenario Averted

Had our client not appointed Bell & Company, the following would have occurred:

• A Judgment Mortgage would have been placed on the family farm, putting it at risk of being repossessed and sold.
• This outcome would have been a substantial concern for our client and his elderly parents as the lender had the option to evict them from their home.
• Upon conclusion of the case, our client expressed his delight with the outcome, describing it as ‘a big weight finally being lifted off his shoulders.’ He commended our team, stating that we had done a truly commendable job in securing a favourable resolution.

If you face a similar position or feel the pressure of debt problems, especially if you’re receiving pressure from creditors – call us today on 0333 305 4331 for your free initial case review where we will outline the most commercial options available to you.