www.iva.co.uk

What are the types of Financial Solution facing people in the future
who no fault of there own have had a Change of Circumstance and got therselves behind with their payments.

1. Robbing Peter to Pay Paul and funding your life on credit cards
,loans and overdrafts until it becomes totally out of control, your life is in financial dissaray and you live on minus for years paying back exuberent interest and working loads of hours just to keep everything in check knowing that you have completely buried your head in the sand.

2. DMP
You sign up for a DMP which is not legally binding and MAYBE!! have some of your interest frozen which is NOT GUARANTEED!! and could be paying back for years and years.

3.Bankruptcy
You can declare yourself Bankrupt and have youe Debt written off
but you can lose assets if you have a mortgage such as your home and could affect your job.

4.IVA
A solution in which you pay back your creditors your disposable income and have it supervised by an Insolvency Practitioner which is legally binding for 60 months and have all the interest frozen and a proportion of your debt written off.
I think this is the most sensible solution and the most popular!

What does everyone else think as everyone i talk too all have debt and money worries and don't feel secure at all in Britain today.

There are many who would agree with you Andrew - but of course an IVA is only appropriate in certain circumstances. The biggest growth at the moment is in the area of DMPs - as perhaps people seek to exlude their property on the basis of paying over a longer period. Perhaps this will become the favoured option for many over the next couple of years.

I agree with Mel that the "best" option will always need to be matched to a person's individual circumstances.

Hi Andrew

Think that the right soution always depends upon the client situation and whilst it is good to pay back the debt - via an IVA or DMP - if there is extreme hardship in doing this then B needs to be reviewed.

The other solutions to debt are ;-

1. refinancing.sometimes this is appropriate and don't forget that this is standard now for homeowners i an IVA ( year 4 clause)

2. Negotiated Settlement. For example you owe creditor No1 £10 and can't afford an IVA so are facing B. Perhaps 3rd party funds can be introduced from "great aunt nellie" and the crditor may accept £5k rather than risk loosing everything .

These are tricky but work well when thee are 3rd party funds available over a peruod of time.

However unlike an IVA there are never any guarantees.

Hey thanks there- I am about to emabark upon a Debt Management Plan, which is causing me stress as it is! My creditors won't allow an IVA, I DO work all hours, and I dont want to go bankrupt becuase we only bought our first house 6 months ago and have worked really hard to make it liveable. I'd like to think it might actually work out for me

Kirsty

Why will creditors not agree to an IVA? Have you put forward a proposal and had it rejected?

no but spoken to IP - black horse will reject (loan less than a year old)as will student loans who hold 26% of my debt

How much is the Black Horse loan and how much are your overall debts? And have you started to pay off your student loan yet?

Hi Melanie

Discussed here

Ian

http://www.iva.co.uk/forum/topic.asp?TOPIC_ID=9553

Yes - I had forgotten that this was the post which started the interesting Student Loans discussion! Difficult to advise Kirsty without full sight of the facts, but with Black Horse only being owed £1,500 the only real issue is Student Loans - and I might be tempted to put it forward on the basis that she is paying her loan and it is in the other creditors best interests to accept a deal which leaves them outside, but if DMP is the alternative they would probably prefer that route.