When you have been negotiating with banks directly for quite some time and seem to have made little progress it easy to believe there is no solution available to you.
However, that is often not the case. In some situations you just need the right firm representing you who understand the best strategy to get you a fresh start.
In this article we explain why how a firm like GT Debt Solutions can do better negotiating with banks on your behalf.
Why You Should Never Negotiate Directly
Personal Insolvency Practitioners (PIPs) are there for a reason.
1. An active PIP will be able to advise you of all your options based on the facts provided. A PIP’s job is to serve your best interests, whereas like any commercial enterprise a bank must serve it’s shareholders. Obviously a bank will only suggest the options that suit the agenda of the bank. That is why the banks prefer it when you deal directly or with one of their appointed representatives rather than an independent PIP. When you talk to a client manager at GT Debt Solutions all your options will be explained to you.
2. When we put a proposal to your lenders it is always based upon a robust investigation which ensures the debtor is fully transparent to the creditors. The bank knows they can trust our intensive due diligence, which often includes sworn affidavits. The structure provided by the personal insolvency process allows the banks credit committees to make decisions based on the facts.
3. Without a firm such as ourselves as a trusted third party there often seems no way to easily resolve any impasse, and eventually the bank will see no alternative but to go down the legal route.
Remember that your creditors pay our fees from the available funds so the work we do on your behalf costs you nothing extra.
Banks Do Make Compassionate Decisions
Contrary to public opinion banks will make humane, compassionate decisions that are not simply based on profitability. We see this time and again. However, as stated above they cannot make decisions without facts and sworn declarations from debtors.
A typical example of this is where a bank has agreed to an Accelerated Personal Insolvency Arrangement (PIA) where they would have received more money in a forced sale scenario.
We had a recent example in Munster where an elderly couple had €300,000 of equity in their home but had commercial debts even greater than this amount. One of the couple had a long term illness and they really needed to stay in their home. The couple’s two sons were able to raise €120,000 between them and the bank accepted this amount in an Accelerated PIA as full and final settlement in order to facilitate the couple to continue to live in their home.
The bank could have gone down a bankruptcy route and received a far higher amount but they made a sensible humane decision. Obviously they also avoided a situation that could have been quite dirty and potentially generated negative publicity.
This is typical of situations where there is a cashflow issue but also equity in the family home. Generally the banks have been quite good in that regard. Once the bank have a trusted third party to negotiate with them they are able to make these type of compassionate decisions.
Having had visability of over 3,000 cases since the introduction of the personal insolvency legislation our experience is very strong .
We can generally tell how any particular lender will feel about a proposal we make on your behalf. If we feel that a case is not clear cut we look for a pre-engagement decision from your key creditor. We put an informal proposal to the bank to find out whether it is likely to be acceptable. This saves a lot of time and effort being wasted down the line.
Again there is no upfront fees for this as it is all part of the service we offer.