Republic of Ireland Law
Republic of Ireland Law Questions Answered by Experts
1. Most banks are happy to receive money - any money - which a debtor can give them. However, I would be surprised if the bank accepted your initial offer of 3k even if it is the most you can offer. I expect the bank to up the ante and to seek a little more. This is because they can also seek an instalment order against any earnings you might have. So, as their judgment lasts for six years, they will hope that your circumstances improve before they seek to settle with you. The loan is quite recent. So, when the bank was advancing the monies, you must have had income. Accordingly, the bank will not settle with you so soon after the monies were handed over.
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3. There is every chance that the bank will simply take the settlement instead of going after an additional amount. That is a possibility. However, be aware that 5 years is not very long for a debt. Many cases run over many years and here it is not near six years since judgment.
4. Yes, you are correct. Payment now, will not affect your deteriorated credit rating. It will take five years for your credit rating to improve once again. Secondly, no doubt the collection agency have purchased the debt for a percentage of the amount owed. Again, offering a settlement amount might resolve the issue. However, be aware that the collection agency will expect more than they paid for it. So, expect some to-ing and fro-ing to resolve the issue.