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Getting Those Debts Written Off – a Success Story

Getting Those Debts Written Off – a Success Story

There was a time in Jenny and Michael Stanmore’s life when the idea of getting debts written off was ridiculous.

With no credit cards and only a tiny home improvement loan, they had enough money coming in to cover the mortgage and bills on their home and enjoy a happy life with their two children.

Then things changed very suddenly. Michael’s employer went out of business in August 2015. Michael was good at his job so he and Jenny were not too worried. It wouldn’t be long before he found another one and they had Jenny’s part-time job and Michael’s redundancy payment to come. The idea of getting their small debts written off was daft – they had money, they would be fine.

Six months passed and things got worse. Their savings ran out and Michael couldn’t find a job. At 53 he found it tough to persuade potential employees to hire him. There was also no redundancy pay as Michael’s old firm had few assets and what it did have was taken by its bank as payment on a secured loan. They started paying some of their living expenses by taking out payday loans online – fortunately, there are plenty of reputable companies in Oakland, CA. This could help, but only if one doesn’t abuse this way of getting emergency cash.

Then Jenny was made redundant at Christmas 2015. To cope until they both found work, they started paying all of their living expenses using credit cards and loans. The idea of finding out whether they had a chance of getting their debts written off sounded more appealing, but still, they resisted. Things would take a turn for the better soon.

Although both Jenny and Michael found part-time work in the summer of 2016 their income wasn’t enough to make a dent in what they had borrowed. Still, they refused to do something about getting their debts written off. The interest began to stack up.

missing paymentsIn 2018 they began missing payments, regularly exceeding their overdraft limit, and incurring charges and interest. A way of getting their debts written off was becoming a real necessity but still, something held them back. They believed things would get better and decided to re-mortgage their home and pay off their debts. Then the recession hit and no lender would let them re-mortgage on their part-time income. The property market crashed and they couldn’t sell their home. They were in deep trouble. Now ways of getting their debts written off were essential.

Jenny rang our experts in January 2019 looking for help. She’d heard about unenforceable credit agreements and wanted to find out if it was possible to get some of their debts written off and ease the strain. A quick check of their paperwork revealed something interesting- one of their loans did not have a signed credit agreement, which makes it unenforceable and a candidate for having the debts written off if challenged.

The lender could not produce a copy of a signed credit agreement, although it did attempt to persuade the couple that their loan application form was the agreement so there were no grounds for having the debts written off. By this time we had put the Stanmores into contact with a company of enforceability experts who were dealing with the lender and working hard towards getting Stanmore’s debts written off as quickly as possible.

The lender ignored their requests and consistently declined to produce a signed credit agreement. It then escalated the case to the local courts. It was the day the Stanmore’s had been waiting for. Without evidence of a credit agreement, there could be no enforcement – getting the debts written off was looking ever more likely.

On the day of the court case, the lender suddenly withdrew its claim giving no reason. The judge stated that the lender had surrendered on a very straightforward point of law, which suggested it had probably hoped the Stanmore’s would be scared into giving up before the case went to court. The judge even went so far as to refer to what the lender had done as an abuse of the legal process.

To Stanmore’s delight, the judge ruled the debt unenforceable and the loan debt is written off – all $22,347. Even better, the judge ruled the lender had to pay the Stanmore’s legal costs too!

Debt Reduction: Alternatives to Bankruptcy

Debt Reduction: Alternatives to Bankruptcy

Debt reduction is one of the primary priorities for most Americans. With today’s economic recession and skyrocketing unemployment, many people are losing money in investments and their homes to foreclosure.

Today, more than ever, people are realizing debt is their enemy and looking for options to clean their financial slate.

Although debt reduction can seem like a daunting task, there are numerous ways to reduce spending and pay off debts. However, in order to be successful at debt reduction, you must sit down and thoroughly review your finances.

Once you can see where you stand, it becomes easier to determine which type of debt elimination plan will best help you reach your financial goals.

reduce your debtThe most popular debt reduction plans include debt consolidation, debt settlement, debt management, credit counseling, budgeting, and bankruptcy.

Many of these plans require the services of debt professionals. The majority of service providers charge a fee to reduce or settle debts.

Unless you are drowning in debt there is no reason to invest money into debt reduction plans. Implementing solid budgeting techniques can help you regain control of your finances without spending a dime.

There are numerous resources available to help people learn how to budget.

The library is another source for obtaining information on creating a household budget and personal finance.

Most libraries offer a variety of personal money management courses on DVD or VHS, which they lend out at no charge.

For those unable to master the art of budgeting, credit counseling is a relatively inexpensive way to reduce debt. Although most credit counselors charge a fee, individuals who cannot afford this service can obtain help through non-profit agencies.

The U.S. Trustee Program offered through the Department of Justice provides a list of approved nationwide credit counseling agencies, as well as debt education providers.

Individuals considering bankruptcy would benefit from using the above-referenced credit counseling services. When debtors petition the court for bankruptcy protection they are required to obtain credit counseling through one of the U.S. Trustee agencies.

There is an abundance of organizations offering debt reduction programs. The problem is most of these companies charge exorbitant fees to negotiate debt.

If you decide to use debt reduction companies, it is crucial to conduct research to ensure you are working with a reputable organization.

One of the best places to verify credentials is via the Better Business Bureau website at www.bbb.org.

Debt reduction requires patience and persistence. Realize it took considerable time to create a mountain of debt and it will take time to conquer it.

Invest time in becoming educated about the various debt reduction plans. Decide which is best suited for your needs. Develop a plan and put it into action. Enjoy the rewards of your efforts and watch your debts melt away.