Property Shortfall Negotiations: Bankruptcy Not An Option

The Key Issue

Our client found themselves in a precarious situation due to an aggressive lender and a significant property shortfall that they were unable to repay. With the looming threat of losing their home and livelihood, they sought assistance from Bell & Company.

The client’s mortgage on their primary residence, taken to fund a holiday home in the Republic of Ireland, had become a burden as the property market crashed. Mortgage repayments became unaffordable, leading to substantial arrears and ultimately the forced sale of the property. After the sale, the client was left with a shortfall of over £170,000.

Why The Client Came To Us

With no feasible way to pay this debt, the threat of bankruptcy was looming over them. However, given the client’s occupation, bankruptcy was not a viable solution. And, as mentioned, the client had limited funds to settle the debt in full, this left them feeling like they had no way out of this situation.

Understanding what was at risk, the client approached Bell & Company, seeking a pre-insolvency strategy that would align with their circumstances.

What We Did

Our specialized debt strategists promptly initiated negotiations with the lender and their appointed legal team. The objective was to achieve a settlement that would minimize the outstanding debt, enabling the client to continue working and move forward with their life.

Through a comprehensive financial review of the client’s situation, we presented a compelling case to the creditor, advocating for an amicable agreement on repayment that would yield the best outcome for both parties. This involved 2 stages:

Negotiations and Evidence: This involves a detailed look at our clients’ current net worth, financial situation and their future ability to raise funds. Using this, along with other establishing evidence gathered by our team of strategists, we presented an offer to the creditor to bring them to the negotiating table. After this, our team’s relentless negotiations secured a massively reduced settlement.

Full and Final Settlement: After thorough negotiations, we achieved a remarkable settlement whereby the outstanding shortfall of £170,000 was resolved for a mere 6% of the original amount. During the negotiation period, our clients were able to raise this sum, meaning that once this was paid, they were 100% debt free.  

The Outcome

The benefits to the client were immeasurable. They were able to continue working and rebuild their life while settling the debt for a significantly reduced amount, alleviating the stress and burden it had caused.

Bell & Company’s dedication to our clients, combined with our expertise in negotiating debt resolutions, allowed us to secure this favourable full and final settlement. As pre-insolvency specialists, we possess the unique ability to offer informal arrangements that traditional insolvency practitioners cannot provide.