Just looking for some clarity on DMPs

ManyWays

sourcrates said:

sonnet72 said:

Can I ask if is worth, after writing to the creditors, if they don’t respond positively to then go down the Financial ombudsman route? 

Not really, not on that particular issue, as said above, what you are asking is entirely at the creditors discretion, so would not fall within their re-mitt.

If they reject the request, Then look again at bankruptcy. (Not an IVA, that is a very stupid idea.)

The alternative is to then just set up a token £1 a month payment and after a year repeat the request saying "look nothing has got better, it's not going to, please reconsider" and if it is refused again go to the ombudsman at that point. Write offs are discretionary but a creditor has to consider what is in the best interest of the customer under the "Consumer Duty". 

sonnet72

Why is the IVA a very stupid idea?  I’m not as clued up as you guys

sonnet72

I’ll be honest with you, I don’t think my mental health can take the “don’t pay anything” or “pay a token £1” route. 

Honestly I’m so scared of just missing that 1 payment. That’s why I’m considering the IVA 

Martico

sonnet72 said:

Why is the IVA a very stupid idea?  I’m not as clued up as you guys

Because you don't have assets to protect - take a look at the first post of this thread, which explains the suitability or not of IVAs

sonnet72

But I do have a questionable beneficial interest in the family home. The advice I’m getting is that that will remain more protected under IVA rather than bankruptcy

Grumpelstiltskin

sonnet72 said:

I will. 

In my head the conversation goes like this: 

1. hey, I’ve accumulated over 60k debt, but don’t worry, I’m going to write to all of my creditors and ask them to simply write it all off….. it sounds unlikely but after doing some research and speaking to people who have dealt successfully with debt, it can work

or

2. Hey, I’ve accumulated over 60k debt, but don’t worry, I’m working with a debt management charity and they’re putting something called an IVA in place. I’ll explain it all but it basically means I pay what I can afford for 5/6 years and then the debt is written off. They will agree with my creditors that I can’t release equity on our home before I sign it. 

I think he will think I’ve gone gaa gaa if I suggest option 1 . 

i can’t just tell him about the debt without giving him something that will allow him to not fall apart or knee jerk seek a divorce

Look you say your mental health won't let you cope with not paying or token payments but I guess and I'm not an expert, that your mental heath will improve when you tell your husband and he is on your side.

So stop thinking about an IVA and tell your husband.

RAS

If you've got a questionable interest in the family home, then that can also be an issue with an IVA. OK, your partner can refuse to release the money and you pay another year or two on the IVA but you have to discuss either of these with him before you do anything. 

sonnet72

Iva decided, husband will now be told, because I have a light at the of the tunnel to bring to the table. 

sonnet72

If I pay an extra year on the Iva, as long as I can afford it then I don’t have a problem with that.

sourcrates

Any debt solution that you make repayments to, requires a steady income, non more so than an IVA.

Your income is benefits based, and I believe its insufficient and too unreliable for lenders to be able to agree a monthly payment on an IVA.

Even if approved, this would be a very bad move on your part and possibly make your situation considerably worse, time and time again we see these arrangements fail as those who are sold them do not fully understand how they work.

The company providing the IVA  have no interest in your circumstances, all they want is their conciderable fee, which on this debt would be around 9k, many 1000`s of IVA`s are mis-sold year in, year out, it`s a commonly mis-sold debt solution.

You would be better advised to go bankrupt and forgo 7 years of misery.