In a spot of bother! 12 July at 7:06PM in Debt-Free Wannabe 21 replies 3.5K views

fatbelly

xFedUpx said:

Would an iva be suitable, if so would they allow us to keep  payIng   partner parents as we still
owe them money x

I refer you to my previous post.

If you contact an IVA company they will suggest an IVA (surprised?) and sell the positives. Without giving you a long essay on IVAs, on your numbers it's not worth taking the risk of insolvency, there will be up to 7k of fees built in,  and partner's  parents would be lucky to see 25% of their money back. Go dmp.

sourcrates

Agree with the above, whilst on paper an IVA may seem attractive, its 6 long years of hard slogg, you are supposed to re-mortgage in year 5, to release further sums for the benefit of your creditors, if you cant do that, its a further 12 months before the mast.

Your in-laws would be regarded as just another creditor, they would not get much return.

Your best bet, as above, is DMP, preferebly self managed, then you can decide who gets what and when, and inlaws won`t suffer either.

master_blaster_44

Fatsdom said:

Knocking a tenner off clothes and haircuts would be a great start. 

Yes knock a tenner off a month and in a mere 333 years, without interest, you'll have it paid off

xFedUpx

Thank you for all your helpful replys.
I will listen to your advice.
What would the first step be. 
Do i have to show them bank statements.
Can they send me to court.
It really is abit overwhelming☹️

xFedUpx

Also when will
they stop adding interest on And miss payments fees x

sourcrates

xFedUpx said:

Thank you for all your helpful replys.
I will listen to your advice.
What would the first step be. 
Do i have to show them bank statements.
Can they send me to court.
It really is abit overwhelming☹️

Its actually a very simple process, you can if you want, go to stepchange, and get them to set up a debt management plan if you wish, if you find it a bit of a struggle to begin with, then that may be your best bet.

You must understand a DMP is an unregulated, informal arrangement, whereby you repay your debts, but at a more affordable, lower monthly payment, its good practice to write and tell your creditors you are struggling financially, you will get an automatic 30 days breathing space, if you apply now, you may get the covid-19 three month freeze, but it might be too late for that, ask them to stop all interest and charges so that the payments you make will help reduce your balance, let them know this may be along term arrangement, and that you are taking advice from stepchange.

They are not oblighed to stop interest, but most will eventually, its also important you save an emergency fund, as once commited, you will have no access to credit, this should be made up of money saved during the breathing space period, and also budgeted for monthly.

Infact the longer you leave it before starting debt management, the better, as you can save a bigger pot, and hopefully get all accounts defaulted, which will mean no more interest ever once that happens.

Its a lot to take in all at once granted, i suggest you look at our DMP support group thread, get some ideas of what to expect, as you need to change the way you view your debts, and the way you deal with them.

Note especially that creditors can say no to your plans, but the payment gets made anyway, if they don`t like it, they just sell the debt on, read up on debt collectors, defaults, and why they are good, court action you can forget, everyone thinks thats what will happen if you don`t pay, and most of the time its rubbish, so do some research, educate yourself on the ups and downs of debt mangement, you will be glad you did.

xFedUpx

Thank you so much this is so helpful
 appreciate you taking taking the time to reply x

xFedUpx

Hiya guys its been a while since i posted.
I Managed to get a payment holiday from my creditors but is due for ending soon.
Should i pay £1 token payments so i can get defaulted? 

How long could i do this until they take me to court? x

sourcrates

Usual process involves debt collectors not court.

Token payments are a waste of time, wait until defaulted and sold on.

xFedUpx

Could they give us a ccj if we dont pay anything, really want to avoid this if possible.
Sorry my minds all over the place with worry maybe im overthinking.