iva declined please help

[Angleparkinn]

MBNA don`t stop interest even if you are in a DMP,well they NEVER did for me.[:(!]
And yet they reject IVA`s in favour of DMP`s I wonder why?
Could it be that they can add late charges and overlimit charges as well as interest as well.

[madbobix]

thx angle are you in a dmp now?

[MelanieGiles]

A DMP has no contractual basis between debtor and creditor, so if the original lending agreement provided that interest and charges are payable then they are within their rights to carry on charging - albeit this sort of goes against the spirit of helping their clients.

[madbobix]

br sounds like my best option then
thanks all

[Skippy]

Is there any equity in your house? How much is your car worth? Do you need your car for work?

Sorry if that sounds like an interrogation!

[madbobix]

yes i need my car for work. with my morgage and 2nd mortgage there's no equity in the house

[Skippy]

I'm not sure what happens about you keeping the house, that's one for Melanie.

As you need the car for work you should be able to keep that, providing it's not worth more than £2.5-3k. If the OR agrees you need the car but it's worth more than that it will be sold and you will be given money to buy a cheaper replacement.

[Vincent Bond]

Hi Madbobix

Some interesting points are raised on this thread, particularly the idea that creditors will receive much less in BR and therefore you might think would favour the IVA proposal. It is true that they believe the vast majority of declined IVAs become DMPs......but a key question here is 'for how long'?

The initial reaction is to perhaps avoid BR at all costs and hence the DMPs are taken on, however I wonder what percentage of these cases end up going BR after the first 6 months or even a yr?

Though it is often not what clients initially want, if there were more BR after declined IVAs then perhaps we would see less objections and modifications from creditors....... which we would welcome!

[hopefull1]

If it is any good for you I am on a dmp and Mbna have frozen all interest and charges along with all my other creditors except royal bank of scotland which are trying to get a charging order on my property of which if they succeed will take my house into negative equity and then if any of the other creditors are stupid enough to bankrupt me they will get nothing back and hopefully I will be able to buying to trustees interest and keep my house.

[Viki.W]

Welcome to the forum hopefull1, keep posting. X

[hopefull1]

I have heard that there is supposed to be some kind of act coming in to play to legalise debt management plans and make them regulated. I don't know if there is any truth in this or not but I think it would be a good move for those who are not eleigable for an iva and want to avoid bankrupcy.

[fuzzy_dunlop]

link financial have taken over my mbna debt i dont know if this is beneficial of not
cant understand mbna rejecting an iva especialy as they offered me a F/F settlement of 2700 on nearly 8k of debt (i wish i could have raised to cash)
it dont make any sense [:0]

[naomi12]

This all sounds a bit scary as MBNA is one of my creditors and I am currently waiting for my DMP to be set up while looking into an IVA. Also Melanie could you explain what you meant by this:-

We are already starting to see signs of this policy in our own proposals, and it will get to the stage as with Northern Rock where IPs will refuse to present them in the first place.

Does this mean that any debt owed to MBNA for example will not be covered in an IVA?

Many thanks

Naomi

[kallis3]

hopefull, I do know that there is supposed to be a simplified version of the IVA (SIVA) coming out. I don't know too much about it, but I think that instead of the 75% of creditors agreeing, it is only going to be 50%.

One of the experts will probably expand on that.

Haven't heard anything about DMPs though.

[rockbottom]

Hey Mad

sorry it didnt go your way today, i really hope you manage to sort something out quickly

rb