GDP mediation results in £223,698 of a Negative Equity Debt Write-down

Case Matter:    
In October 2018, a married couple came to see us with an Investment Property portfolio in the name of their Property Development Company which they had personally guaranteed. The property portfolio had been repossessed by a Private Equity Firm, and subsequently sold over the following 12 months at a loss. The loss from the sale of the property portfolio totalled approximately £253,698. As our clients had no means of repaying this debt and during this period they were also issued with a Statutory Demand and so faced the severe prospect of being made bankrupt, this was understandably a very anxious and stressful time for not just the client but also for their family.

Solution:
Our first aim during our initial free consultation meeting and subsequent meetings with the clients was to give reassurances that solutions could be easily achieved to settle this matter. Our clients were actually unaware that by simply attending this meeting they had already taken the first step on the path to debt recovery. This first step was simply to ASK FOR HELP! 

During our meetings over the following months, we worked with the clients and devised a workable strategy. Once agreed, we started to put the wheels in place to transport our strategy into a solution. As there was no disposable income available, our overall strategy was to offer the Private Equity Firm a lump-sum settlement in order to finally resolve this matter and to prevent our clients from being made bankrupt which would have had serious repercussions for them going forward.  The funds were being provided from our client’s available pension pots. 

Over the next few months, we worked closely with the clients to ensure all required information and documentation was provided to the Private Equity Firm. In September 2020, we then offered a lump-sum settlement to them. After just over a month of negotiations, the Private Equity Firm agreed to a full and final settlement of £30,000. Our clients were delighted with the outcome which was a fantastic result for GDP, but more importantly for the clients.

Case Study Summary:
Creditor: Private Equity Firm owed £253,698
Proposed Solution: Full and final settlement proposal
GDP Mediated Settlement: Creditor accepted £30,000 (equating to 11.8p in the £)
Settled: November 2020