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About four years ago when I was unemployed I entered into a debt management plan with Eurodebt. Originally I was paying about 48 pounds per month which has been gradually ratcheted up to 72 pounds. This is stretching me. I am now over 65 years old, with a limited income and at this rate of going I will never be free short of bankruptcy which I do not want to do.

My debts are about 66 thousad pounds. When I enquired about an IVA to put an end to matters after five years I was told that Eurodebt do not do this. Others have told me that to qualify for an IVA I need to make minimum monthly contributions of 250 pounds which I cannot do. Is this true?
John

Hello Jmc

Your situation highlights the problem with using an Informal Debt Management Plan to counter debt difficulty, i.e. the fact that it can take many many years to pay the debt off. Even if your Debt Management Company can ensure interest and charges are frozen it is still not reasonably possible for you to pay these monies.

An IVA will only be possible if you can raise at least c£300-350, which you have said you can not do.

May I ask why you are so adverse to going bankrupt? Do you own a property?



Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Hi John

This informal repayment plan that you have entered into was never going to look at clearing your debts. I wonder why you were put into it in the first place, and think that given your age and lack of assets that you should seriously consider bankruptcy proceedings before you retire.

You are correct that an IVA does have a minimum payments criteria, but I do not feel that would be a sensible solution for you at this time even if you could afford it.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

I agree.

If you have no sizable assets which you fear losing then I also think think that you should seriously look at bankruptcy.