The legacy debt that still remains from the dark days of the crash!
Ireland, north and south, has suffered more than most other European countries since the dark days of 2009, with the global recession wiping 50% off house prices in some areas and commercial development virtually grinding to a halt.
The property market here remains impaired by “crisis legacy issues”. In particular, the high levels of household and commercial property debt that still prevails eight years on from the crash. The Banks are back in profit and generating capital but the mountain of non-performing loans and arrears continue to weigh heavily on those taxpayers who bailed out the very same financial institutions.
Since the crash of 2009, thousands of individuals have been left with shortfall debts and are still faced with on-going litigation proceedings.
If it isn’t the original lender chasing individuals for legacy debt then its vulture funds who without warning have purchased distressed loans and assets to try to maximise their profits.
What is now happening on a regular occurrence is that completely out of the blue, individuals would get a letter from their bank to say that that their loan has been sold to a vulture fund and that they could no longer deal with them. No explanation why, no information around the new owner of the loan, and no advice as to what they might want to do next, nothing.
The stark reality of all of this is that the bank, pretty much overnight, has dealt with their own legacy debt position on their balance sheets but in doing this have passed their customer on to, what in most cases are extremely aggressive private equity funds, who will want the loan repaid in a very short unreasonable time- frame.
What can you do?
If you find yourself in this position, it is important you now take immediate action. If a legacy debt exists then it is imperative that individuals check their loan paperwork to determine and understand the agreements they had with their previous bank. If you are like most people and you do not understand the paperwork, then you need to now “ask for help”.
Burying your head in the sand is not an option, as the new owner of your loan will run out of patience, likely within the first few months of this new relationship.
STEP 1 - ASK FOR HELP - If you have a financial issue, or are concerned about any of the matters mentioned in this piece, you now need to make the first step.
What we can do to help?
Since 2010, GDP Equity Experts have helped hundred’s of families deal with debt related issues and in particular legacy debt related issues. These kinds of debts just keep on grinding, and grinding and grinding away at individuals lives. Private equity funds are well funded, staffed and have the time, to constantly put you under pressure to pay up. This unfortunately could lead to you developing significant health problems due to anxiety and stress, which is often associated with people who find themselves in this position.
As a result, it is very important to take advice in this regard from a regulated team of debt advisors to plan for the future.
Our team are well placed to help you, your business and your family today. Are you ready to ask for help?
If you would like to download a copy of our 7 step guide to our eBook, then please hit the button.