a retired 70 year would like some advice

[babs]

i finally reached the end of my 'juggling' with credit card debt and was first advised to set up a DMP which would take 12 years to pay off at an amount i really couldn't be comfortable with. when i queried the budget figures a new estimate of 35 years was given and i was told i would have to self administer the plan.

I am now making enquiries about an IVA which seems better as i don't want to go bankrupt. But as i am a retired 70 year old i would like some advice as to what is the better option. I owe almost 30K and live on benefits, classified as being on a low income, so any payments i make will obviously make a vast difference to how i am able to continue living. any advice would be very much appreciated. thanks

[stressed out]

Hi there!
I cant advise you, but hang on in there as there are many on this site, who i'm sure will give you the advice you need.
Good luck!

[size5]

Welcome to the forum Babs.

1 question only, are you a Homeowner?

[AlanO]

Hi Babs,

I see where size5 is coming from unless you are a Homeowner or have any other assets to realise for a lumpsum payment - then highly unlikely that IVA will be agreed.

The more probable route is bankruptcy what is your concern in this area?

All the best Alan

www.debtdr.co.uk

[MelanieGiles]

If your income is from pensions, I would not rule out an IVA, but from what you have posted it would not appear that you could make contributions at the level which would be required to make a sensible offer.

If you have no assets of material value, bankruptcy would seem to be a sensible route.

[carlmcmullen]

Alan,

Afraid i dont agree with your comment about having to make a lump sum deposit.

Under the new protocol creditors will consider pension, providing it is occupational and not state pension.

Babs how is your income made up ?

Can you also tell me us a little more about who you owe the money to and what you feel your disposable income is.

I am making the assumption that if your have been told 35 years in a DMP on a debt of 30,000 then your disposable income would be in the region of £70 - £90 a month ?

Bankruptcy may be somthing that you need to take advice on, what assets do you have ?

[AlanO]

Hi Carl,

I agree that there could be consideration however babs mentioned living on benefits and being classed as low income so there is unlikely to be an acceptable pence in £ recovery. Further more is a typical 5 year IVA really appropraite for a 70 year old person.

If there are assets then maybe a oneoff IVA or full and final settlement may be appropraite

If no assets then bankruptcy would appear to be the option.

As you mention always best to refer to an expert for a full review and the right solution being indentified

All the best Alan

www.debtdr.co.uk

[MelanieGiles]

There is nothing wrong with a 5 year IVA for someone with sufficient pension income who can afford payments comfortably, and to suggest that they be denied on age grounds alone would be predudicial.

I have many elderly clients who are proud to be repaying their debts through and IVA, who would ultimately be far better off financially by going bankrupt, but who morally wish to pay as much as they can.

[AlanO]

Melanie - As you say it is really down to what is right for the individual and if the payment is comfortable well done to your elderly clients.

Regretably I have come accross some situations where the payments have proven too onerous

All the best Alan

www.debtdr.co.uk

[MelanieGiles]

Guess it boils down to the integrity of the IP firm at the end of the day - and I do find that most creditors are more sympathetic in these cases.

[babs]

many thanks for the replies received. it is good to know i am not alone and there is hope somewhere. unfortunately i have no assets as i live in housing association accommodation with a visiting warden (twice a week), no car or jewellery just books and my elderly companion cat. my income is made up of state benefits only and i am classified as being on a low income. i have struggled with my juggling for the past three years and thought i might have been winning (foolish me!). when i took out the original cards i was in wellpaid work. i have been contacted by an IP firm but if i take up the option offered i don't think i will be able to cope with the repayments and stay ok. i am a coeliac and lactose intolerant so need a special diet. also i have to pay for medication for osteoporosis as the NHS cannot offer suitable medication - in fact my GP apologised for not being able to help - so i get my medication from a UK supplier on the internet. Reading through this it seems hopeless but i am appreciative of the e-mails, so again, thanks for the advice.

[AlanO]

Hi Babs

Don't worry the situation can be managed and the best solution found for you which is probably bankruptcy.

I suggest that you contact an expert and they will usually provide free advice specific to you.

With regard to the future if you do go down the bankruptcy route best to obtain a prepaid mastercard to enable you continue online purchasing of your medication


wishing you all the best Alan

www.debtdr.co.uk

[ianmillington]

I agree that Bankruptcy would seem to be the most appropriate solution for you Babs.

What part of the world do you live in?

Ian

[Skippy]

Hi Babs, bankruptcy isn't anything to be afraid of. It will draw a line under your debts and allow you to move on with your life. I went BR last year and while I didn't want to, it enabled me to have a fresh start without worrying about debts.

Good luck x

[ladyc]

Isn't there a provision whereby Babs could request her debts be written off? She seems to have good reason. She has obviously struggled for a long time and I imagine is a proud woman to have done so. I also imagine she doesn't want to end her days as a Bankrupt and I can see that.
Is there anything else for her?