Help and ideas please

Get expert opinion. This is the place for new questions to be posted.
4 posts Page 1 of 1


User avatar
Posts: 1
Joined: Wed Apr 29, 2020 6:55 pm

Post by eric493 » Wed Apr 29, 2020 6:55 pm
Hi, My sister is having major problems with debt. She has had a very upsetting life over the last two years, where she has lost her grandson and her own daughter and due to this she began to have seizure's Because of this I invited her and her husband to come and stay with me in Cyprus. She is now in a state as to where she is finding it very difficult to pay off her credit that she obtained due to her past life experiences. She has in total approx. 17,000 worth of debit on two credit cards and an overdraft. She is unable to continue paying these debts off and the stress of all this is making her unwell and I am extremely worried about her. I have looked at Bankruptcy but am not sure on what the correct road is to take . Please please can you give us the correct road to take as all of this is getting so upsetting for the whole family and we just do not which way to turn. Many Many Thanks in advance. and I now await a reply from you soon.


User avatar
Forum Expert
Posts: 31265
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Wed Apr 29, 2020 7:15 pm
Hello -- sorry to hear of your sister's troubles. Rather than give advice based on only a few parts of the whole picture I would suggest that she has a chat with a couple of IVA providers to discuss the options. In a nutshell, and VERY briefly, they are:

A DMP ( Debt Management Plan) where a provider agrees a repayment schedule with all creditors, often being able to reduce or freeze interest. Stepchange run fee free DMPs, being partially funded by creditors for this purpose. This would last until the debts are fully repaid.

A DRO ( Debt Relief Order) -- sometimes described as 'bankruptcy lite'. Again Stepchange is licensed as an intermediary for these. Debt has to be below £20k and the debtor must have no assets and a disposable income of less than £50 per month. This lasts for a year and wipes the debt for a fee of £90.

Bankruptcy --- Wipes all the debt, but you will have to liquidate all assets. These days discharge takes a year and there might be a requirement to make payments of disposable income for 3 years. Fees for this are around £750 up front.

IVA - An agreement is made which runs over 5 or 6 years to pay the agreed disposable income monthly. Also extra income during the IVA will need to be paid in. You are allowed to retain a modest vehicle and can keep the house, if you own one, but would be required to look at releasing some equity nearer the end of the term of the IVA.

I would suggest chatting with smaller IVA providers, rather than the large 'factory firms' for a more individual and, often, sympathetic service.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014


User avatar
Forum Expert
Posts: 75955
Joined: Mon Mar 17, 2008 4:02 pm
Location: United Kingdom

Post by kallis3 » Wed Apr 29, 2020 8:15 pm
I believe the fees are £680 (according to CAB).

Is your sister still living in Cyprus with you?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.


User avatar
Forum Expert
Posts: 10908
Joined: Sun Dec 09, 2007 6:54 am
Location: United Kingdom

Post by luluj » Thu Apr 30, 2020 8:43 am
Such a difficult time for her, and all the family, but she is lucky to have you their to support her through this.

As foggy has outlined there are options for her based on her full set of circumstances and professional advice is certainly the way forward and she will be well looked after throughout.
Sharing from experiences of dealing with debt

There is a solution for everyone .... Just need to stay positive !

Look at my blog "All I wanted was a baby"
4 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”