www.iva.co.uk

I hav recently paid a fee to enter into a debt management programme, which was going well until we were told that HSBC (who we owe a large sum to through a managed loan) had refused to enter into the agreement. Yesterday I was made redundant and we are now seriously considering an IVA as we cannot afford the debt management payment plus the HSBC loan payment. We also have a secured loan which is very high interest. My concern is are HSBC likely to refuse to enter into an IVA agreement too, as if so its not worth us going into it.

Hey dianem, welcome to the forum. I'm really sorry about your job. Did you get any redundancy pay? Do you think you can find work soon?

How will you fund IVA payments until you find work? HSBC have a high acceptance criteria for IVAs, and will require to receive a dividend of at least 40p in the £ over the term of the IVA. Are you property owners?

Hello and welcome from me too.

An IVA is a long term commitment and whilst it is an excellent tool to help with debt my gut instinct is to say that you would be very unwise to look at it at this point having just been made redundant, the point there being how are you going to fund it with one less wage coming in.

As a matter of interest, who has informed you that HSBC have refused to enter into the DMP? Was it HSBC themselves by any chance? The reason I ask is that, whilst creditors are free to refuse the offer of payment on a DMP, as a principle of law they cannot refuse the payment itself. It is a common creditor tactic to contact a debtor directly for payment with all sorts of implied threats, bullying tactics etc, simply to get more money for themselves. The problem with that, of course, is that as a DMP is done on a pro rata basis, if you pay one creditor more then really you should pay them all more, which takes you back to square one.

I would urge you to contact the DMP provider you have chosen and speak to them to put your mind at rest on this matter, you can always post again on here as well and someone will be along to help you.

Regards.

Hi
Great advice from Size 5
Regards

Hi thanks for the replies, didnt think this question had posted so have posted similar with more details somewhere else! (still getting used to this, sorry!)
Am hoping to get back into work asap but its difficult...had returned to my job in March after maternity leave, management level and the days and hours I wanted. Very hard to find a job at same level in same business (retail)which also fits in with nursery (which is also very costly!).
Debtfixers contacted me to tell me HSBC refused DMP payment, last month HSBC were payed the £92 from the DMP allocation, plus they took £300 out of our HSBC current account without our authorisation (I understand they can do this!!). We have been advised to close the HSBC current account so they cant do this again but there are £125 charges been added for returned direct debits which we cant afford to pay now, and they wont close the account till we pay those off.
Debtfixers said that if we just pay the DMP and not the full ammount, HSBC will likely sell our debt to a third party, but im not sure what this means?
We can still aford the DMP payment (I think) because we have an income protection insurance which covers redundancy, the claim is just going through now.
Thanks again for your advice. xxx

I had similar problems with HSBC. They were happy enough to accept my DMP payment but still continued to take out my loan payment, pay it back in because the overdraft was overdrawn and then charge me.

They wouldn't close the account, but they did eventually sell it on to a firm called Robinson Way. They were then more than happy to accept the payment and couldn't have been nicer. HSBC then closed the account.

Beware,they may try to get you to take out a 'managed loan' to pay off just their debts. Don't touch it. You'll soon be back in the same position.