www.iva.co.uk

Hi

I would really like to do an IVA to clear my debt.However I have been advised that as 85 per cent of what I owe is with one creditor - LLoyds - they would not accept

So whilst bankruptcy may now be the best option as I have no assets, there is no way I could find the court fees

Is it feasible to start a DMP for a few months and then to consider bankruptcy at a later date when I have scraped together the required amount

Would you not save enough for Bankruptcy by just giving token payments to your creditors for a couple of months?

If you were going to be entering into an IVA - how would that have been funded? Presumably you have some disposable income, so I would save that up until you can afford the bankruptcy court costs. There seems no benefit in continuing to pay creditors if ultimately you are going to be declaring yourself bankrupt.

Why do you think that Lloyds won't accept - have you spoken to an IP?

Probably because it is well known that Lloyds will not accept an IVA where they hold 75% more of the aggregate debt David.

Have you spoken to Lloyds and asked them if they can help you? If they hold the majority of your debt and know that your choices are help from them or go BR,you may find them willing to help out in some way.

And also ask them would they be willing for you to do an IVA on affordability grounds as well.

Good luck Gordon, I hope you can find a solution x

4 years ago, Lloyds held 65% of my debt (for reasons of their own doing, but that is another story). They agreed and my IVA went through without any problems.

Hello again

Thanks for the advice everyone - it seems I should speak to LLoyds, make token payments or not make payments at all

However what would be the consequences of any of these actions (find this worrying)

Have a word with Lloyds, tell them that you had wanted to put forward an IVA but are aware that you do not fit their criteria, and see what they can suggest to you. In the meantime I would continue to make token payments until you have an agreement.

Hi

Have spoken to LLoyds as recommended - could not believe how helpful they were

They have just reduced my outgoings on loans by more than two thirds

Not out of the woods yet but at least I get some breathing space

I wouldn't have thought of speaking to them until I got replies from this post

I am extremely grateful for all the help received

There you go - a fine example of a bank being helpful, and good advice provided by forum members. Good luck with the settlement and do let us know if they start charging interest again. They have promised not to in these circumstances.

That's fantastic news Gordon, glad they have agreed.

Keep us posted as to how you are getting on.