What is my best next move

[hdl]

I am considering an IVA. My total debts amount to £40K. £30K to Barclaycard. I have always managed to make the minimum payment to Barclaycard, except for the last one. They have recently contacted me by phone and asked what is happening, I told them I would contact them in the next days. What is your experience with dealing with Barclaycard ? What is my best next move with them, to gain some time, while I consider the best plan ?

[MelanieGiles]

Hi hdl and welcome to the forum

Wow - that is a large debt to Barclaycard. Is this just on one account or several separate ones. Barclaycard are generally a fairly supportive creditor, but they are generally a minority creditor rather than in the majority. What sort of return do you think you will be offering your creditors.

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

[hdl]

The amount is all on one card.

I am not sure which route to go with this. I am currently reading through info sent to me by the National Debtline....So I don't know a figure to tell you that I could offer them.

What is my best next step with them ? They are expecting a call from me to let them know what is happening with another payment.

[MelanieGiles]

You need to work out what your disposable income is - ie that amount you are left with each month to pay creditors, having allowed for household and personal expenditure. It may then be possible to consider whether an IVA is appropriate for you, in the meantime you should tell Barclaycard that you are insolvent and are considering your options.

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

[thebear29uk]

Hi hdl

Maybe you can share some information with the forum.

How did you end up with a £30K limit on one credit card? Was it much lower to start and Barclaycard kept increasing it whenever you got close to the limit or did you request higher limits and they agreed. What income do you have?

Regards

Dave

[ray_a]

The only problem from what I can see is that Barclaycard are you biggest creditor and most probably represent more than 75% of your creditors and that may be difficult in getting their support for allowing you to go into an IVA.

Keep in touch asit is very interesting.

regards

Ray

[hdl]

Is there any speed issue in dealing with Barclaycard ?

Can they quickly take me to court or do anything which would stop be going the IVA or Debt Management Plan route ?

Do I need to make a decision before they might got to a court ?

What is the usual timeframe for Barclaycard (or simular company) before they take action. I have only missed the last payment, which was due July 1st. Until then all was in order.

[hdl]

Barclycard increased the limit at my request, 3 or 4 times over the last 5 years.

The account has always been in order until the last payment was missed, which was due July 1st.

I have had severe work problems resulting in income lower than expenditure for the last period of time. However going forward I expect my income to pick up and I can cut expenditure, so I might have surpless to go into an IVA arrangement.

[Sarah]

Morning

This may or may not help but Barclays and Barclaycard were pretty much 90% of my debt and they approved mine with no issues.

I hope this helps!

[hdl]

Sarah - Thanks for the post - What happened during your dealings with Barclaycard, from the point your failed to make payments ? I am trying to figure out what to expect from them.

[Sarah]

From my experience they were actually very helpful all they wated was to see some documents to prove that i was entering into this and taking some steps but i think they are one of the best creditors to have.

[jue]

i found barclaycard one of the nicest creditors to deal with.they only had a small portion of my debt and they did vote yes at my meeting,but unfortunately it was rejected by NR.

jue.x

[MelanieGiles]

There is no real issue with regard to your Barclaycard debt, and I generally find them one of the most supportive creditors, but you will need to carefully explain how you have managed to rack up such a large credit card debt until you realised that you could no longer continue to service the repayments.

In the meantime they have the same rights as other creditors to pursue their debt, so the sooner you engage professional assistance from an insolvency practitioner as to your options the better.

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

[hdl]

'but you will need to carefully explain how you have managed to rack up such a large credit card debt until you realised that you could no longer continue to service the repayments.'

Melanie - Please could you expand on this ? Do you mean explain to Barclaycard ? At what point do I need to do this and why ?

[ray_a]

Hi HDL

I think talking to an IP might be the best option as from what you have said the problem has only just arisen because you met your minimum repayments.

A good IP will be able to assist you with the wording and you do not need to worry to much on this issue.

Ray