iva credit card Q< ( sorry if answered else where as new to board )

darkrev

Due to a change in circumstances we have decided that we would be better freezing the interest and paying off the capital on our credit cards. I had been under the impression that banks would( subject to negotiation) agree this for a 3 to 6 month term, without having to default on the cards, like a break ...... I couldn't get the banks to take us up on this. Am I thinking of something else ? ( is this an iva?) or is defaulting the only way ? we were told the debt dept wouldn't talk to us due to the fact we were working !!!!

We just want to do the right thing, before the choice is removed. please can anyone advise us as the right direction.

many thanks

FoggyBrain_2

A lot will depend upon the amounts involved, but, assuming they are over £15k (total unsecured debt, not just the cards) a DRO won't do. Next stage to look at is a DMP (Debt management programme), this is where a company such as Payplan or CCCS negotiate on your behalf to reduce / freeze interest and is a short term fix while you regroup.

If a DMP looks like it might take more than 6 years or so to pay off ( and remember creditors do not have to freeze charges) then an IVA might be the way to go.

A decent Insolvency firm will talk you through all options and I suggest you have a look at https://www.iva.com for a list of firms.

Payplan and CCCS are good for DMP's, but for IVA's they are much on a par with most other reputable firms ( and there are sharks out there!) and you should find one, after chatting to a couple, you feel most comfortable with.

darkrev

Thank you for your reply, if we just wanted to deal with the cards ( less than 6k) and not other debt as we could continue to pay that off, is there an option for that or is it all or nothing ? also can I check what a DRO is ( sorry for being dumb) thank you so much for the help and advice. x

FoggyBrain_2

I imagine, in a DMP, which is basically an informal arrangement you could leave out some debts ... but you should discuss this aspect with the firm you chose to represent you. I would suggest contacting Payplan, as they are part funded by the banks and have more clout with them when arranging DMPs.

A DRO is a Debt Relief Order, if debts are less than 15k, you have no assets and a disposable income of less than £20 (however I am not at all clued up on these)

darkrev

thank you so much :beer:

rocco123_2

Hi there, just reading your thread on your situation , unfortunately all your debts have to be declared in any plan you wish to take wether it be dm or an iva, I,m currently halfway through an iva arranged by the cab with a company called grant Thornton and its the best thing I ever did !!

caz2003uk

FoggyBrain wrote: »

A DRO is a Debt Relief Order, if debts are less than 15k, you have no assets(No assets over £300) and a disposable income of less than £20(less than £50 per month) (however I am not at all clued up on these)

Just corrected the above post

and to add you can have a car worth upto £1000

There is more to it, but those are the basics!

FoggyBrain_2

Thanks for that Caz ..... as I said, I know very little about DRO's :-)

caz2003uk

FoggyBrain wrote: »

Thanks for that Caz ..... as I said, I know very little about DRO's :-)

No probs, I've been through it myself so thought I'd comment with the details