Refused an IVA - why?

Littlemiss-lotsofdebt

Hi guys

Although I have debts, I've always (luckily) been in a position to pay them and am starting to make inroads into them so please excuse my ignorance of IVA's and DMP's.

I have a friend who has approximately £20k worth of debt, earning a salary of £15k. His wife does not work at the moment, basically because she is a lazy trollop and not because she is unable. After seeing how stressed he was, I gave him the number of the CCCS and his wife enquired about an IVA. Apparently they refused this?! and suggested to her that she get a job and they could pay back the debts in 5 years or the CCCS would negotiate with the creditors to pay the debts back over 12 years?

Could this be right? I have absolutely no faith in his wife so am not entirely convinced she is telling the truth. Knowing how soft he is, I can see him going down the 12 year route.....

tawnyowls

Well, it sounds as if the CCCS has worked out that they would be able to pay off the debts simply by using a DPM (debt management plan), without needing to go to the more official step of an IVA, and they'd be debt-free in 12 years, or in 5 if she gets a job (which she should, really - she presumably has benefited from the money). What would happen is that the CCCS would look at their budget, decide how much they'd be able to pay off each creditor each month, would contact the creditors for them and get them to agree to this payment and to freeze the interest owing. Their website explains the process: http://www.cccsatl.org/debt-management-plan-faqs1.asp

GreyPilgrim

Littlemiss-lotsofdebt wrote:

His wife does not work at the moment, basically because she is a lazy trollop

hahaha - a bit of direct honesty. Made me smile.

(*puts on Roy Walker voice*)
"Say what you see - if you see it, say it"

Littlemiss-lotsofdebt

Thanks TO - I thought it might be something like this. Presumably them entering into a DMP will withdraw the right to gain credit from other sources (not a bad thing IMHO).

Only wish I could help him more, but his wife is very overbearing and rarely lets him speak for himself let alone do anything without her!

Addicted2Chocolate

being in a DMP does not prevent people from getting mroe credit. i have seen people in DMP's go on to get more loans and credit cards then go bankrupt.