www.iva.co.uk

After reviewing and reading hundreds of posts I would like to ask the Experts - David Mond or Melanie Giles what they advise I should do, although I notice they both have not posted for a while so any advice from anyone would be appreciated:

I have equity of around £20,000 (current latest valuation) in my home with the mortgage held by Northern Rock (£120,000). I have the following Unsecured Debts (approx balances):

Northern Rock £25,000
EGG Credit Card £5,500
HSBC Credit Card £19,500
Store Cards £6,500
MBNA Card £13,000
Amex Card £8,000

My disposable income after allowing for everyday household expenses is around £150 per month.

Now who do I seek advice from -

(a) A firm that recommends me to a DMP or IVA provider?
(b) A firm that only does IVA's?
(c) A firm that does both IVA's and DMP's?

Would it be possible to do a 5 or 6 year interest free DMP?

Would the preferred solution be an IVA for 5 years?

HSBC are owed more than 25% of my debt so presumably I would have to seek (if doing an IVA) a firm that HSBC has agreed that the hurdle rate is not in force in respect of that provider?

I hear that Northern Rock can be difficult and they are owed over 25% - what would there likely option be?

Is the best advice to go to a firm who does not ask for upfront fees and who can provide the lowest possible cost solution?

Which firms can meet that criteria?

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This is my personal opinion, but I would go directly to an IP. They will be able to go through all your options with you. This advice is usually free. Have a look on www.iva.com, where you'll be able find reviews of a lot of IPs. If you want to contact Melanie or David their contact details are in the experts section at the side of the page.

Regarding the HSBC hurdle, I understand that IVAs have been accepted at a lower rate in certain cases.

Hi Snowflake,

Neither David nor Melanie are around this week, but should be back on again soon.

You are better seeking a company who will give you advice on all your options, not just one.

Normally £200 is a benchmark for an IVA payment, but I believe David's firm has done them for less. Not sure about Melanie.

It is not guaranteed that you can get interest and charges frozen in a DMP, and if you only have £150 per month, that's not going to pay all your debts off over 5 or six years. It will take a lot longer.

You should speak to several providers. Visit www.iva.com for a list of companies and reviews. Make sure you ask about upfront fees. Some firms charge, some don't.

These firms will go over all your options with you and advise as to the best one for you.

Thank you so much for your comprehensive reply - much appreciated and so quick.

I will review the site you have suggested.
[:)][:)][:)]

The majority of the firms used by posters on here are on that site and they do come recommended.

good luck snow flake hope you get sorted hun x
we're here if you need us

good luck . we have ythe together package with n/r unsecured amount from 2 mortgages was 40k . they accepted our iva proposal. the unsecured element was this month written off and is no longer on our mortgage statement. will also had egg, mbna, lloyds .... most of ours all agreed, but with plenty of modifications . but nearly 4 yrs in im glad we did this

Hi, Snowflake and welcome from me too.

As Kallis says, your disposable income would come nowhere near paying off a DMP in 5/6 years. How have you mananged to make any payments against your credit cards with only £150 to spare?

As all on here will advise, contact an expert. I'm sure they will come up with the right solution for your circumstances.

Good luck!!!

Thank you - would love to hear advice from David Mond or Melanie Giles on this query please?

Where are they?

In fact I will try and ring them tomorrow or Size5 for some advice.

Melanie is away on holiday, I imagine she will be back on again this weekend.

Hopefully we will see David posting again soon.

Both are missed when they are not here.

I was about to post on this anyway.

As far as I know, Melanie is skiing, but I expect to see her back posting, if not tonight then certainly in the next 24 hrs or so as I am sure she mentioned on here that she was off for a week, although I stand to be corrected of course. David is in the USA and I don't know when he will be back off the top of my head.

As for who you approach, well I can't help you much with that I'm afraid as it has to be your own choice.

There are a number of things that would need to be gone into with you before anyone could tell you whether an IVA was viable or not, and I would always recommend that you speak to 2 or 3 providers anyway, a wrong move at this stage could be something that you may regret.

NR have had a reputation in the past as being not supportive of IVA's, that is certainly not the case now, they will treat each proposal on its merits. I also suspect that reputation was a little harsh anyway.

HSBC have waived their traditional 40p hurdle rate for a few providers, I think the number is 4 or 5 but I cannot swear to that, which again means that each case will be treated on its merits.

Hope this helps.

Regards.

The best thing to do is to contact an insolvency practitioner - or two or three if you like to compare advice provided in order to make a reasoned choice as to the way forward.

Not all IP firms actually offer DMPs, but all ought to be able to recommend reputable firms to you who can discuss this option with you. You already seem to be fairly well informed - eg your comment re HSBC hurdle rates, so the advice provided by an IP or two ought to help you to make your mind up as to options.

Many thanks Melanie much appreciated and also thanks to Size5