Advice needed

[steviek]

Hi, I have just found this site and think its really supportive. I am needing help and advice on wether to go iva or dmp. My debts are as follows
Cap one card £7536
Halifax card £8132
MBNA Virgin card £7359
HSBC overdraft £500
HFC Loan £320
Inland Revenue £1200
I have today had my creditors meeting and MBNA rejected my offer, my ip is saying that mbna may well sell the debt and that i could reapply. However i am not very happy with this as i dont know where i am going to land up, and i am now wondering about a DMP. I have £300 to pay every month and am a tenant living on my own in a private rented propery. Any ideas please.

[debbiw]

Hi
Is Bankruptcy an option? With you renting, I just wondered.
What IVA company are you with

[steviek]

my ip is debt lifeboat, who havent really had that much contact with me.

[Adam Davies]

Hi
Well a DMP may be an answer although I'm not sure that the IR will accept one.
If you could get all interest stopped it would take you about seven years to complete.Speak with several DMP companies and see what they have to say.
You can always declare bankruptcy as you have no assets to lose[how much is your car worth ?]
Did your IP say why MBNA had rejected ?
I would guess that they would prefer you in a DMP rather than an IVA
regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Andrew Graveson]

Hi steviek,

In terms of a DMP the numbers certainly appear viable provided that it represents a fair offer from yourself (which I'm sure it does).

I agree with Andy's comment on the IR but fortunately it represents a fairly small part of the debt total.

Your other creditors appear to me to be reasonable in their handling of good debt management proposals.

A DMP might also be a useful holding position for you to get your finances to a manageable level now in anticipation of a possible retry for an IVA if circumstances allow in the future. A good DMP company will keep that under review for you.

Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[steviek]

hi guys
thanks for the postings, i really want to try and avoid bankruptcy. my car is worth about 10k and i really need this for my work as i travel a considerable distance back and forth. I have approached cccs to construct a dmp who say my repayments will be £360 over 5 years for me but have read some postings that say they are very set in their ways so far as my allowances for expenditure go. Debt life boat who unsuccessfully tried an iva for me yesterday are saying i could try again in about four weeks and they are saying that mbna who said no would of sold their debt on. My iva repayment with them was set at £260 which i can afford and at a push run to the £360 cccs are saying i need for the dmp.The thing is i just want to get all this debt repaid and move on with my life. The debt was incurred both prior to a very messy and costly divorce, which saw me picking up the tab for my ex over spending.All i want to do now is pay it back at a rate i can afford.

[Andrew Graveson]

Hello steviek,

There has been a considerable amount of discussion on the site as to whether CCCS's expenditure guidelines are influenced by the fact that they are largely funded by creditors.

We try to make sure that all of our DMP clients enter into an arrangement that is affordable for them based on their unqiue circumstances. This is vital because if it is not the chances of dropping out of a DMP are very high.

The only caveat to this is that the arrangement must be fair on creditors as well. Generaly we find that it's possible to find an arangement that is fair for all involved, and that creditors respond well to fair proposals.

Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[steviek]

thanks for that Andrew, what do you think i should do, try a different company and go down the the iva route assuming it eventually gets accepted or a set up a dmp.I have the credit card people chasing me at the moment and i just want to deal with this.
steve

[Andrew Graveson]

I guess there are two priorities for you:

1 - Get your finances into a manageable shape now.

2 - Clear your debt as fast as you can.

The first priority might be dealt with quicker via a DMP.

The second priority, according to the amount you feel that you can afford monthly, would be better achieved by an IVA as and when it becomes available to you.

We have a number of DMP clients who sought IVA's but were not able to enter into one for various reasons. We keep an eye on these DMP cases because if circumstances change and the IVA beomes available it very often represents best advice to our client at that point.

It's interesting that CCCS want more than £100 more per month than you proposed via a highly trained licenced Insolvency Practitioner. If £360 isn't really affordable perhaps you should speak to a DMP company that will represent you rather than your creditors.

Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[steviek]

Yes i agree with that, i suppose that cccs being funded by my debtors would always be biased to their cause. With this said, can i ask if my case would be one you might take on?

[Andrew Graveson]

We'd be delighted to.

Our phone contact details are in the profile section or you could email your contact details to my email address below.

Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[steviek]

hello andrew i will use your site and go through the questions on there.thanks

[caraf]

Why did MBNA reject it, I thought they had to give a reason ?? did all the other creditors accept ??

[steviek]

hi caraf, no reason given from mbna, yes all the others accepted.

[debbiw]

i wonder why they did not give a reason, as I thought they always did. Did your IP try and negotiate with them