Hubby applying for Iva and DMP for me

purpleparrotuk

Hello

Hubby is in the middle of applying for an IVA at the moment. I have been told by the debt managment company that they need to find out the outcome first incase he needs to be put on the DMP with me instead.

Anyway what I concerned about is that I have cancelled a credit card DD and loan DD a few weeks ago now (as suggest by the company) and sent a token payment of £5 each saying I am seeking debt management advice.

If my hubbys IVA takes a couple more months for an outcome I am worried that I will be receiving lots of defaults on my credit rating. Should I have asked them to freeze my interest and charges until my DMP is sorted out? Its around £5k I owe in total so hopefully won't take too long to pay off with the share left from hubbys IVA.

I fear I might receive CCJs and debt collection agencies calling at my door

Tixy

Hi

If you are going on a DMP then it is inevitable that you will get a default for most of your debts. If your DMP is going to take a while to set up it is worth sending a letter to your creditors, along with yoru token payment - suggested template here - http://forums.moneysavingexpert.com/showpost.html?p=21937969&postcount=52

Which debt management company are you using? Is it one of the free charity organisations? IMPORTANT - Where to seek professional impartial advice about your debts.

One other point to note, if you current bank account are the same bank you owe money to on the credit card or loan then you need to move to a new current account with a bank you don't owe any money to ASAP. Otherwise the bank may well take money from your account to make up the shortfall of your token payment and recall any overdraft you have.

purpleparrotuk

Tixy wrote: »

Hi

If you are going on a DMP then it is inevitable that you will get a default for most of your debts. If your DMP is going to take a while to set up it is worth sending a letter to your creditors, along with yoru token payment - suggested template here - http://forums.moneysavingexpert.com/showpost.html?p=21937969&postcount=52

Which debt management company are you using? Is it one of the free charity organisations? IMPORTANT - Where to seek professional impartial advice about your debts.

One other point to note, if you current bank account are the same bank you owe money to on the credit card or loan then you need to move to a new current account with a bank you don't owe any money to ASAP. Otherwise the bank may well take money from your account to make up the shortfall of your token payment and recall any overdraft you have.

Thanks

New bank accounts all ready open. I did send a letter to my creditors telling them I am taking the advice of a debt management company (it is a reputable non fee one). But I did not say it may take a while. We both made the mistake of signing the letters because they would have seen the signatures on the cheques anyway

Maybe I will send another letter like you have linked to asking them not add interest etc whilst it is setup. I will do that tonight.

Do I just sit it out and wait for the non payment letters to arrive? Hopefully it won't be too long before hubby has the date set for the creditor meetings.

I just feel terrible not being able to pay my debts while hubbys is being set up. Maybe I should have tried to find the money for the next few months payments?

3431Anna

My husband has had his IVA accepted and wanted to take out some form of income protection insurance to cover his payment the quote from his IP was quite high, does anyone know where he could get this at a reasonable price Many thanks

purpleparrotuk

3431Anna wrote: »

My husband has had his IVA accepted and wanted to take out some form of income protection insurance to cover his payment the quote from his IP was quite high, does anyone know where he could get this at a reasonable price Many thanks

Probably get more replies if you start your own thread :-)

3431Anna

I haven't startd my own thread because i'm not sure how to

Tixy

Hi Anna

To start a new thread click on this icon at the top right of the relevant forum page - (just above the first threads).
Might be better to either ask this on the IVA subboard though or perhaps the insurance board.

Tixy

purpleparrotuk wrote: »

Thanks

New bank accounts all ready open. I did send a letter to my creditors telling them I am taking the advice of a debt management company (it is a reputable non fee one). But I did not say it may take a while. We both made the mistake of signing the letters because they would have seen the signatures on the cheques anyway

Maybe I will send another letter like you have linked to asking them not add interest etc whilst it is setup. I will do that tonight.

Do I just sit it out and wait for the non payment letters to arrive? Hopefully it won't be too long before hubby has the date set for the creditor meetings.

I just feel terrible not being able to pay my debts while hubbys is being set up. Maybe I should have tried to find the money for the next few months payments?

I'd say its probably worth sending another letter, at least then you are staying in touch with them a bit more and mayby they'll freeze interest. Hopefully his IVA won't take too long to sort out.

Regarding feeling terrible about not being able to pay your debts - its hard to get out of that way of thinking but if you are going to have to default at some point then in many ways a couple of months on token payments might allow you to build up a small buffer and also some might say that the sooner you get defaults from your creditors the better. As defaults last 6years from the date they are entered then the sooner you have them the sooner they will go from your credit file.

Good luck

3431Anna

Tixy wrote: »

Hi Anna

To start a new thread click on this icon at the top right of the relevant forum page - (just above the first threads).
Might be better to either ask this on the IVA subboard though or perhaps the insurance board.

Thanks very much Tixy for your help I have put in the insurance forum :T