paying debt off over the next 26 years

[becci]

I have been paying of a debt to a collection agency for 1 year. The debt was originally with the hsbc bank. The cab acted on my behalf and arranged for me to pay it off over the next 26 years. Is there any way i can reduce the debt and the time to pay it off. The debt was never reduced and I am on a low income and work part time.

[Adam Davies]

Hi
How much is the debt for ? and do you have any more debts ?
Regards

[ianmillington]

Your other options are IVA or bankruptcy.

Can I ask what you do for a living, and whether you own your home or any assets of significance? Also, if you weren't in debt, would you have surplus income at the end of the month and if so how much? Finally, how much do you owe please?

Regards

ian

[MelanieGiles]

At the meeting of the IVA Forum held in London today, which I attended, it was confirmed that DMPs which run over unrealistic time-periods should not be proposed. I would suggest that a repayment term over 26 years would fall into this category.

[carlmcmullen]

Mealanie,

Will information that has been discussed at the today's IVA forum be published and made availble to all IP's?

Carl

[MelanieGiles]

I am sure that it will Carl, but you can find the details of the new protocol largely on the Insolvency Service's website.

I am posting you a link

http://www.insolvency.gov.uk/insolvency ... eeting.htm

[Andrew Graveson]

Hi Melanie,

A DMP running for an unrealistic period of time is obviously not much good for anyone.

What practical alternatives are proposed for those who currently have no other options or who find the current alternatives unattractive?

[MelanieGiles]

It is ultimately down to client choice - so if the client wishes to propose a DMP then the lenders are not going to necessarily stop them.

[johnz]

But how would that effect people like me, who had not other choice? Sorry if I'm being dumb here. I couldn't get an iva, or bankruptcy, admitedly because of personal circumstances, but my DMP is going to run for at least the next 10 years. I can just see a situation arising where people can't get an IVA, go bankrupt, or get a DMP because of the length of time and having no where else to turn? Or have I completely mis-read that?

Cheers.

[MelanieGiles]

John

The reason you could not get an IVA was due to choices made by your partner and yourself, and was not due to an inability to meet IVA criteria. So the DMP procedure is still there if that is what you want to do. As a result of your choice, you are left paying for 10 years plus and not the five you would have paid for under IVA proceedings.

Sorry - I did not mean to give the impression that long running DMPs were no longer going to be available, simply that creditors would no longer insist on them as an alternative to an IVA.