Debt Solutions
Comments
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My IVA was completed in March 2015 but I still receive letters from some of my creditors with figure outstanding statements. Should I still receive these?0
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I think the answer's no, but thanks for reminding me of a very old thread!0
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Hi
Urgent reply much appreciated here.
I have a friend who has spoken in confidence to a debt relief charity. He has a strategy and clear structure of what he will do.
My friend tells me he has circa £3k in overdraft (at the limit of his overdraft). Before writing to his creditors as the first step, should he make a money transfer to clear the overdraft or a money transfer to clear the overdraft + a sum of money to put the bank account in credit?
The reason he asks is that once he is in discussions with credit card companies re paying back debts to them, he assumes they'll freeze the credit cards and he will not be able to spend on them any further. At least if he makes the money transfer he can just spend on essentials from his bank account?
Thoughts please so I can advise!
Thanks
K0 -
Is he planning to go bankrupt? If so there’s not much point putting money in his bank account as it will be closed by his bank as a bankrupt isn’t allowed to have an account with a credit facility.0
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bestfootie wrote: »Hi
Urgent reply much appreciated here.
I have a friend who has spoken in confidence to a debt relief charity. He has a strategy and clear structure of what he will do.
My friend tells me he has circa £3k in overdraft (at the limit of his overdraft). Before writing to his creditors as the first step, should he make a money transfer to clear the overdraft or a money transfer to clear the overdraft + a sum of money to put the bank account in credit?
The reason he asks is that once he is in discussions with credit card companies re paying back debts to them, he assumes they'll freeze the credit cards and he will not be able to spend on them any further. At least if he makes the money transfer he can just spend on essentials from his bank account?
Thoughts please so I can advise!
Thanks
K
There maybe an issue in that essentially he won't be treating the creditors equally, as the overdraft will be repaid in full, at the expense of the credit card company
The more normal approach would be
- open a new bank account with someone he doesn't owe money too (or in same banking group)
- move income to new account
- then start on debt solution
he should avoid taking out any more credit if hes not able to repay it , as this is very much frowned upon in formal insolvency0 -
There are still problems with this article. For starters:
1. It's not made clear enough that these are the England/Wales options
2. The format 'debts greater than' infers minimum llmits on these strategies, whereas there are none.
3. A DMP is not 'the only one that does not go through the courts'; neither bankruptcy (in debtor petition cases) nor DROs involve the courts.
4. AOs are so rarely used it seems strange to give them prominence against 'full & final settlement' or unenforceability strategies.
5. It infers one £1000 asset limit for DROs. There are two - one for a vehicle, one for all other assets.
6. To suggest a minimum 'fee' of 5k for an IVA is just wrong. It also seems unfair to provide a link to just one IP.
7. Only one definition of insolvency is provided in the bankruptcy section (there are two) and it doesn't make it clear that DROs and IVAs are also 'forms of insolvency' and appear on the public register.0 -
Given the thread is over 5 years old - maybe its time it was taken down or re-written?0
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TheGardener wrote: »Given the thread is over 5 years old - maybe its time it was taken down or re-written?
The article says it was updated last month!!!0 -
I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
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I am doing some research on debt consolidation vs debt settlement. While both aim at debt relief the two strategies are different.
Debt settlement is negotiating with creditors to settle a debt for less than what's owed whereas debt consolidation is combining debts from several creditors, then take out a single loan to pay them all, hopefully at a reduced interest rate and lower monthly payment.0
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