Currently in a right old mess and hoping someone can help me out
Currently owe in the region of £65,000 to 7 different creditors between my wife and I. Lloyds TSB are the main creditors and when looked at our total debt make up 70%. The problem comes in when we look at each indivual debt Lloyds makes up 74% of mine and 82% of my wifes.
I have been told that they might accept an IVA from myself but not from my wife , is this the case or would they have to look at us together as having 1 IVA accepted would not work as she is not in employment and it is basically my funds that would be paying the debt off.
Hey knobby68, welcome to the forum. I was the same, TSB was my main creditor but when I actually added ALL my debts they held less than I thought. If it is over 75%ish then they will want to deal with it in house USUALLY, however your IP should be advising you as to the best way to progess. Hang on and I'm sure one of the technical experts will help. X
Last edited by Viki.W on Tue Sep 09, 2008 2:52 pm, edited 1 time in total.
Hi
I believe that where Lloyds hold over 75% of the total debt in an IVA proposal they prefer the client to deal with them direct or take on a DMP
regards
Thanks for advice so far, my debt to TSB is approx 74% and I am the only income earner of any great value. My wife gets family credit (£35) and family allowance (£175) so is in no position to make any payments whatsover. I have been told that DMP is not an option due to the amount involved and the only way forward is BR or IVA. From an ignorants point of view, would they not treat this as a joint IVA as the only region the %'s are above 75% is beacuse of 2 joint loans, also would they not deemed to have acted incorrectly to sign up a joint application for a loan when she has not worked for the last 10 years?
Basically if Lloyds are over 75% of the debt and a DMP would take 8 years or less they will look at freezing interest and dealing direct. However, it's not a tablet of stone and each case is dealt with on its facts.
If your chosen IP sends an I&E and a creditors list to Lloyds before drafting the proposal they will tell him or her whether they want an alternative course of action.
Ian Millington
Insolvency Director
PDHL Ltd (formerly Personal Debt Helpline Ltd) www.pdhl.co.uk
Hi
There is no reason why you can't look at a DMP.
Where Lloyds are owed 75% of the debt they feel that paying for an IP is a cost that they would rather not have to pay to recover a debt that is mostly all belonging to themselves.
I think that this stance is a fairly new one.
Melanie or Ian are better placed to give a more difinitive answer
Regards
Thanks Ian, in your opinion is it worth starting the ball rolling as i am worried that if we are rejcted then we have no other option other than bankruptcy
Lloyds were one of my creditors, although not my main and they didn't vote. I was fully expecting a 'no' from them to be honest and was very surprised that no vote was cast.
Ian/ Andy, are you saying that a DMP might be better to go down in this case?. Would I have to bring all the creditors in to this or just deal with Lloyds, also would i have to change bank accounts as advised if i went dowm IVA route?
You lose nothing by looking into the matter and your IP can bounce the situation off Lloyds without alerting the other creditors, on the basis that you are simply looking at your options, and an IVA is one of them.
Ian
PS - whichever way you go, you'll need a new bank account.
Last edited by ianmillington on Tue Sep 09, 2008 3:21 pm, edited 1 time in total.
Ian Millington
Insolvency Director
PDHL Ltd (formerly Personal Debt Helpline Ltd) www.pdhl.co.uk
Hi
If an IVA is not suitable then explore a possible DMP.
All unsecured debts would be included and you would need to have a bank account from a non creditor
Regards
Ian is absolutely correct. Whenever I have issues like this I have a contact at the representatives for Lloyds who is more than happy to look at things on a case by case basis. This would not take your chosen IP long to do and it is definately worth a try if a DMP would take a long time to repay.
