www.iva.co.uk

Hi all.

I have been working with a debt management company who suggested I was eligable or an IVA.

Today though they hae told me I will be unlikely to be accepted as most of my debt is wih one of my creditors.

They said as I had 92% debt with a company they were unlikely to accept the IVA so will not put my case forward. Instead, they suggest a debt management plan, whereby I pay £100 a month and they take 15%.

Does all of this check out?They told me the most my man creditor would accept, e.g. debt level to them, would be 75%.

I just want to get this sorted asap.

Hi
This can often be the case if one creditor holds nearly all the debt.
Why did thay suggest to you that it may be possible in the first place ?
Who are you using ?
Regards

hey matt if you were able to post a few details eg a breakdown of your debt one of the experts can advise you.
also take advice from another company aswell to evaluate all open options to you have a look on www.iva.com
keep posting

Hi there and welcome to the forum

This is not necessarily correct, but I can see where your IP is coming from. Which creditor has the majority?

If you only have £100 per month then an IVA is likely to be a workable option in any case.

Thanks for the replies.

I am using debt free direct. Bfore they commence with the debt management plan I have to give them thefirst £100 aspayment. I am worried as the debt management plan isn't enforcable by law.

Iam a University student, before going to University I took out a loan to start a business, which in this climate didn't work out.

I owe Lloyds TSB

10,000 personal loan
3006 credit card bill (Missed my last 2 payments)

Fom a seperate bank (Nationwide) I also owe,

1500 (Again I missed my last two payments)

I am also over my credit limit on both credit cards.

The main thing that's killing me is my travelling expense to University. I am pying about £60 a week to get there.

My debt was around 85% for one creditor - HBOS, they agreed my IVA and only one other creditor voted - they voted no so it worked in my favour really, i only pay £100 a month into my IVA.

My mom is in a DMP with Payplan, she couldn't do an IVA as she has too much equity in her house and she didn't want to sell. I was under the impression you could do DMP's for free???

It is normal for Lloyds to prefer DMP's if they hold more than 75% of the outstanding debt. The DMP is more of a gentlemans agreement rather than a formal process, but in reality they tend to work very well if they are worked at by all sides.

The only choice you face now is whether to use DFD (and the retaining of first payment is quite normal) or whether to use a non fee payer such as CCCS or payplan. All this assumes of course that you are not considering bankruptcy, which is an option for you as £100 per month for that level of debt would take you quite a long term to clear.

Regards.

Hi
You may even fall under the debt relief order requirement, debts less than 15k, no assets above £1000 and DI of £50.
The CAB are arranging these so it may be worth making an appointment there.
Regards

Thanks once again all.

I'm relieved to hear that the keeping of the first payment is quite normal. If I pay the £100 though what is to say my creditors will accept the debt management plan?

I don't want to go down the bankruptcy route as I wish to emmigrate to the US once my degree has finished.

You can't be sure 100% that they will accept, but the vast majority do.

I was in a DMP for 18 months before I did an IVA and all of my creditors froze interest and charges.

It will take you years to clear those debts under a £100 per month DMP, but I imagine that you will expect to pay more when you do graduate and start working, so it may not be a bad idea in the meantime.

Hi Melanie,

Yes I plan to pay more back once I graduate the only problem is that is two years away. However, over the summer I can work and pay off more than I can during term time.

On a side note does anyone know if/how bankruptcy would affect a move to the States?I would imagine immigration wouldn't look to kindly to that?

Also with regards to bankruptcy is it true I'd have to pay for a year? So any money I receive from the student loan company (it is split into three payments throughout the year) would go towards paying my debt back?

That would leave me with very little to live on though if that money went straight in and straight out of my account. Would bankrupty affect my having a student account?

Don't know about the immigration question, hopefully Melanie can answer that one.

If you have enough disposable income (over £100) per month, you would be expected to pay across between 50 and 70% to your bankruptcy for three years, not one.

You would become discharged though after one year usually.

The Americans can be a bit touchy about letting bankrupt's in, it may be OK for a temporary work permit but if you have visions of gaining citizenship it might be worth looking into a bit further. An IVA will be no problem at all.