hi, i had debts of £43000,and presently pay £200 per month(past 6 yrs) through a dmp, i now owe approx £29000, i enquired about an iva, but was told i would not qualify because i am regd disabled, and receive incapacity benefit and disability living allowance, i receive approx £700 per month. please confirm if this is correct, as i have been informed an iva is available to all with a steady income which i have, and with a disposable income of £200 for which i designate to pay off my debts.
What you have been told is correct, if benefits are your only source of income, then you are unlikely to get an IVA.
If you have no assets, you could declare yourself bankrupt.I advise speaking to the company you are doing your dmp through and enquiring about br with them.
Last edited by kallis3 on Tue Dec 23, 2008 1:58 pm, edited 1 time in total.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I do not see why you should not be accepted for an IVA - but it cannot be one covered by the IVA protocol, as this does not allow persons who are entirely dependent upon benefit income to apply. Don't worry, it is just as easy to present a non-protocol case so don't be put off by that, but of course ultimately the decision will rest with your creditors.
If you have paid in approximately £14,000 over the last 6 years, and your debts have reduced in direct proportion, at least creditors do not appear to be charging interest, but it will take you another 12 years before you are debt free - and it seems to me very unfair that just because you are disabled you are not able to avail of the same legislation that an able bodied person could - after all the creditors did not feel that this was a problem when they actually lent you the money.
If you have no assets which would be at risk, have you also considered bankruptcy as a quicker and cheaper route to becoming debt free?
Sorry Melanie, I thought if you were solely on benefits you couldn't get an IVA.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
It is down to the creditors at the end of the day Jan, but any IP asked to handle such a case would need to carefully make sure that the needs of the disabled person were adequately provided for, prior to considering the level of disposable income available.
Under many of these circumstnaces, bankruptcy proceedings are quite often a better option for the person concerned, providing they have no assets - but at the end of the day it does boil down to the exercise of individual choice and the goodwill of creditors.
Yes it is only Protocol Compliant IVAs that cannot have benefit income but as Melanie states an IVA can be proposed provided your disability is not affected by the monthly installments.
Speak to an IP or visit www.iva.com and select one to discuss your circumstances and hopefully you will get the appropriate advice. Good luck.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
thank you for the advice, i now have something to work on. just one other point, i own a car and use for getting around due to my mobility problem, would this be counted as an asset. and would the car have to be sold to pay off some of my debt
The car would certainly NOT have to be sold - don't worry and seek that advice.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
thank you for that valuable info, i shall now contact the people who arranged my dmp, and put these facts to them. the advice i have received so far is very much appreciated and been a great help, a big thank you to everyone who has replied to my concerns, i will keep you posted on the outcome. best regards Kris
Yes, I had a current account, overdraft and credit card with HSBC, all maxed out and they didn't even bother to vote at my meeting.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Well I think that you have received pretty poor advice - and you ought to go back and clarify this with them to find out why they are telling you that HSBC do not accept IVAs. What absolute piffle!
