In September 1999 my partner and I split up and our home was repossessed (we handed in the keys. Only recently have I been contacted at my new rented accommodation (I'm a single mum with a five year old child. I wasn't given the opportunity to make an offer and £100 a month attachment of earnings is being taken from me. I have now received a "without prejudice letter" stating that Abbey National are willing to accept a one off payment of £1,500 (mortgage arrears are £11,723.94). I could borrow this money from my mum - is there a catch?

Also I don't know if my previous partner is paying anything or if I am responsible for the whole of the arrears.

Regards

-- Donna Hardcastle (townfanterry@aol.com), November 15, 2004

Answers

You have two options really

1 Keep paying £100 a month

2. Offer a full and final settlement and if you go down this road you might want to offer £750 and see what they say. I guess you must be working and earning the appropriate amount for £100 attachment of earnings to be deducted. If your circumstances changed since the attachment was first made then you could ask for it to be reduced.

If you were not working, had no assets then you would be in a better position as they wouldn't be getting their £100 a month and would be more likely to accept an offer of £750.

If you do make a F & F offer make sure it covers any shortfall that has been paid out of a MIG otherwise the insurance company might come after you, AFTER you;ve paid this mob!

I can tell you that Abbey settled on a £400 F & F against a £14,000 offer but the difference being that the debtors were not in employment and had no assets.

I hope this helps you make the right decision for you. Just don;t offer anything without bouncing it off this site.

All the best

Moira

-- Moira (Anderston828@aol.com), November 17, 2004.