What is my best next move

[tinytori]

I have had experince with Barclaycard and they were very nice, they did ring a few times to many but were generally ok

[MelanieGiles]

You will need to explain the reasons for the high borrowings on one credit card for inclusion in your IVA proposal.

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

[willalwaysreply]

Hi,
I,m currently begind by 2 payments with Barclaycard the phone rang and I told them that I was dealing with Payplan and I can no afford afford the minimum payment they stopped calls for 14days and were very nice, this was a week ago and the phone hasn't rang.

I have phoned up all my creditors, Cahoot, egg, Lloyds, Barclays, barclaycard and everyone was brilliant to be honest, the key is keeping them informed and be honest.
I,m going into a DMP at this stage.
The problem with companies these days is they use call centre's abroad to ring you and they try and get payment if however little I made a token payment to barclaycard of £25 instead of £330 and they understood and seems happy with my efforts.

Good luck

[hdl]

Since posting the above messages, I have delayed any action, as work looked like it was picking up, though I can see not enough to make difference. So now is decision time. Here is an update on my situation:

I owe approx £45K
- £33K to Barclaycard
- £5 to Lloyds Bank Overdraft
- £3 to Lloyds Credit Card

Barclaycard, have usually at my request, increased the credit limit over the years. I have had the account for 10+ years and until 4 months ago, the account has always been in order.

I have no property or assets

I have been running a consultancy business, which is not going well, for the last 3 years

While my financial situation got tough, I moved to Tel Aviv, to cut expenses. Life here is about 40% cheaper than Central London, where I am from. I return to London every 3 months. My work is on the Internet, so I can work from any location.

My expenditure is less than my income by £500.00 per month.

I have received a ‘Default Notice’ from Barclaycard in Sept. A few weeks
Ago they sent a 2nd letter asking me to contact them, adding that they may be able to
make a payment plan, also that they might sent around a local debt collection agency.
They are also leaving messages for me every few days to call them. I responded to the ‘ Default Notice’ , by mail, asking for them to give me 6 weeks, without anymore interest to let me decide what to do. Until I stopped paying the monthly account, the account, which I have had for 10+ years, has always been in order.

Both my Lloyds Bank Overdraft and Lloyds credit card have only been in default for the last 2 months.

I am trying to work out which route to go:

1. Bankcruptcy – I have no assets to be taken. I am unlikely to want a job which a Bankcruptcy would cause problems for.

2. IVA – Though currently my income is less than expenditure, I could take a personal loan from family and pay an IVA. I calculated that if I could get an agreement for 25p in the pound that would be about £190 per month for 5 years.

3. Direct Negotiation – Is it likely that I can get either of the companies to agree to a final offer from me ?

I look forward to hearing your comments on:

1. Which is the best option for me ?

2. Should I make any contact with Barclaycard and Lloyds in the meantime, both companies are leaving messages every few days.

[hdl]

I just had an hour long session with CCCS.

It was suggested that my main priority is sorting out
my personal situation - Getting to a point where my
income at least equals my expenditure.

With regard to the unsecured credit debt (Barclaycard
and Lloyds) it was suggested I write to them that
I am in a monthly deficit and tell them I will pay
£1 a month as goodwill untill the situation changes.
Also to ask for 6 months without any added interest.

I was told there was no reason to immediately go
Bankcrupt or enter into to an IVA.

It was pointed out that there is very little Barclaycard
or Lloyds can do if I have no property,
assets or disposable income after my living expenses. And that
this situation would not change even if they go for a CCJ.

The main message was to conscentrate on getting a income
exceeding expenditure rather than worry about Barclaycard and
Lloyds.

Any thoughts on this ?

[Andrew Graveson]

Hi hdl,

As you do not have the spare money to contribute to an IVA I don't see how you could enter one.

If you are in an IVA you will not be able to borrow money to fund it.
If you borrow the money before an IVA to pay for it the lenders will become creditors and have to be included in the IVA. They'd be lending you money to get a dividend back via the IVA which your family might not see as an attractive arrangement.

I think CCCS are right that your first consideration is to concentrate on your personal situation as, whatever choices you make now, your personal situation will be the most important thing in the long-term.
Perhaps it's right that there is no reason to immediately go bankrupt. On the other side of the coin what are the reasons not to?

Why would CCCS counsel against an option that would give you a fresh start financially at a time when you struggle to meet your normal expenses let alone repay debt?

Many people feel an ethical responsibility to repay money that they have borrowed. If this is the case for you I fully accept that bankruptcy might be innappropriate.

Andrew Graveson
Independent Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[MelanieGiles]

Offering creditors £1 per month out of goodwill is madness in my opinion - you might as well pay them nothing, and I supect you will be taken more seriously as a result!

I suggest that if bankruptcy is not an option you wish to pursue, and you are unable to offer a realistic repayment programme to creditors either in a DMP or IVA (might be difficult given the number and mix of your creditors), that you write to the creditors explaining your circumstances, and that you will provide them with quarterly updates of your finances. Alternatively if your parents are able to help, a debt mangagement company such as Andrew's may be able to negotiate a settlement for you.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp