Serious Help Needed

[maresca]

Hi there

I'm looking for some help and a way forward. I currently have debts at just over £24k and am in arrears to the tune of at least 4 months on the three loans that form the majority of the debt.

In the past 5 years i've had a strong gambling addiction which i have only come to terms with over the last few months. I'm getting counselling and advice on the way forward.

I spoke to debtfreedirect a few months back and they seemed all to eager to go for an IVA - i sent my details and personal info back including 3 months statements which showed some gambling deposits on my main current account.

They promptly called me back and said something about my rent being too low for living with parents and my disposable income being too high to propose the IVA. They suggested a debt managment plan but never called back.

I have since contacted a new company or have been a little more up front. They said the gambling would affect the IVA proposal and that i should wait for at least 3 months before proposing it, provided my accounts remain clear of gambling.

I have been away from work for the past 8 months due to depression and stress and am only now building up to returning.

Part of my debts are now being passed onto recovery companies who are bombarding me with letters for repayment.

I am at a real loss of where to turn to next - they have suggested a debt management plan but i have heard that the first payment normally goes straight into their pockets.

The added kick in the balls is that i still live at home and my parents to not know the real extent of my debt. [V]

Where to next ?

[MelanieGiles]

Hi maresca and welcome to the forum

I have dealt with gamblers in the past, and am seeing more and more people caught up in this activity as a result of internet based sites. My only concern would be that you gave kicked the habit so to speak, and you would need to convince an IP that this was the case as they would be nervous that there may be some risk to your payments if you reverted back to gambling.

I don't see that gambling necessarily affects your IVA proposal, but you will need to be open and honest with your creditors as to how their money has been spent - and three months waiting does not affect this!

You will also need to demonstrate paid employment, so the sooner you get back to work the better. A DMP may well be an option, but so are an IVA and bankruptcy - so it might be best to speak to an insolvency practitioner with experience of all three solutions - and make sure you speak directly to the IP, or one of his/her managers, and not a junior member of staff who may not be so clued up on the ins and outs of what creditors will accept.

Hope you manage to find a solution - and remember parents can be a great support at times like this if you share things with them.

[size5]

Hello maresca and welcome to the forum.

It is true that debts run up due to gambling are frowned upon, but that in itself is no automatic bar to looking at an IVA. My personal view is that if you can prove that you have sought and are taking profesional help for it then I would be happy to have a stab at it under those circumstances. You could always have a DMP as a back up, if you wished, if the proposal was rejected.

That said,I can also see the sense in proving yourself, so to speak, for a few months to prove that the habit has been well and truly kicked so a DMP is not a bad option.

It IS true that generally professional DMP firms will take the first payment as a set up fee, but there are firms out there who, if an IVA was sucessfully proposed a little later on, would then release the first payment on the DMP to kick start the IVA, in effect your IVA would then be 59 months instead of 60. You may wish to look down that route so no harm in speaking to a few people.

Ultimately though, the contribution to either DMP or Iva is determined by affordability, so if you have a healthy disposable income which will clear your debts in a reasonable time, then creditors may prefer a DMP over an IVA. Again, no harm in taking 2 or 3 opinions on this.

Hope this helps.

Regards.

[Soulgrowth]

Hi Maresca ... I just wanted to say welcome to the Forum and I hope that you find a solution. Keep in touch and let us know how you get on as we are all here to support you.

Debbie