How much debt do you need?

[Shining]

I know that you need minimum 15k debt to make an IVA viable. My daughter came around last night and admitted to me she is in debt, a few tears later, we talked about it, I did tell her we were experiencing money problems but didn't say to what degree. Now an IVA for her isn't at all viable as she is (I was going to say only here but decided against it) £3k in debt. Having said that their income vs their expenditure is making it very difficult for them to cope and repay their debts as late payment charges and interest is making their debt bigger. I did tell her about and explain briefly what a DMP is, I showed her a couple of websites. Firstly today she is going to get a Basic Bank Account and I wondered is there a minimum amount of debt you need for a DMP? Thanks for your advice.

[kandh]

Oh isthereanend, Im really sorry that your daughter is experiencing problems at the moment. £3k may not seem a lot to some on this site compared with their own debt but it obviously is a lot to your daughter.

Unfortunately I dont have any knowledge of DMP's (was never an option for us) but hopefully someone who knows a little more will be along soon.

xx

[aguise]

Hi ther
My daughter struggles to survive as well. Hopefully Andrew from brightoak will answer.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[Adam Davies]

Hi
I believe that an administration order can be set up for debts upto 5K and may suit your daughter if she has a CCJ registered against her.The conditions of such an order are that the debtor must have at least one CCj and two creditors.
An Administration Order is a court order which covers your outstanding debts. Under it you would make a monthly payment to the court, who will then distribute that money on a pro rata basis amongst your creditors.
For ‘administering’ the order, the court will take 10% of your payment as handling fees to cover their costs, which they will deduct directly from your monthly payments.
Whilst the order is in place no creditor included in the order, without the leave of the court, will be allowed to take action against you. In addition, debt collection procedures and letters against you will be stopped.

Hope this helps
Regards


Andy Davie
IVA.co.uk Spokesperson

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]

Hello isthereanend,

An administration order is certainly a possibility if the conditions that Andy mentions are met.

A more informal option would be a DMP. How much does your daughter feel she could afford to pay towards the debts on a monthly basis?

We don't really work to a minimum debt level; we're more interested in whether the DMP is viable and in the interests of all involved.

There can be no guarantees that interest and charges will be frozen under a DMP though I have stated elsewhere on the forum that an impressive array of creditors tend to agree to that when they receive a reasonable proposal.

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

[Shining]

Very helpful both options, I had never heard of an administration order. She is not sure if she has a ccj?? When I next see her, I'll post more details after asking more, she was here till 2.30am talking about this and I can't admit to retaining much of the information she supplied.