advice about ways forward to us at this moment ?

[sandie66]

Hi everyone, new person here and really need some help. My husband is in debt to the tune of £42,000 - 3 creditors-bank/mbna card and a hp with the car. We took some advice and it was suggested to go down the DMP route rather than IVA but am not sure if it wil be the best route for us or not.

We do not have a mortgage, and rent a private property. We do have some savings but they are not enough to pay off the total of our outstanding debts. With the prospect of not being able to afford to get back on the property ladder for the forseeable future, we would rather set up our 3 children with savings bonds, so they will have some form of asset for the future. My husband does own a quarter share of his parents house (he bought it with his parents & sister)so is concerned that any legal route could threaten them or our childrens monies. We haven't defaulted n our payemts yet, but would like advice about ways forward to us at this moment.
Thanks

[MelanieGiles]

Hi sandie and welcome to the forum

An IVA is not really possible as he only has two debt, with the HP being secured against the vehicle. As your husband is a property owner - and presumably his interest in the property has some value, bankruptcy proceedings would affect that share, so a DMP is probably the right option for him at present.

How much can he afford to pay each month? And also would it be possible for him to realise his interest in his parents property to perhaps make an offer of settlement to his creditors? MBNA would be particularly receptive to this.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Andrew Graveson]

Hi sandie66,

A DMP could be the right option. The amount that you are able to contribute each month is very important as it will affect:

1 - The creditors view on acceptance of the DMP.
2 - The likelihood that your creditors will support you by freezing interest and other charges.
3 - The speed at which you can clear the debts.

As Melanie says there may be an alternative with the use of the equity, or possibly an opportunity to combine both options if it's in your best interests.

Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk