www.iva.co.uk

I have debts of approx £16k on three credit cards, and I haven't made a repayment on them for approximately six months due to lack of finance and crippling interest rates. I am concerned that the net is closing in on me, and I feel I need to act now. I do have a couple of queries though:

1. I live with my partner, and her salary is paid into my bank - will this be a problem?
2. Similarly, the same bank account pays for our household expenses - how is this dealt with?

Hi
If you are thinking of bankruptcy then the bank account will be frozen so you need to get your partner to open their own account.
Have you taken any advice regarding your debts ?
If not why not speak with a couple of debt management/IVA providers and see if there is an alternative to bankruptcy.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Hi cr15py

As you have not serviced these credit cards for quite a long period, I suggest you communicate with the Credit Card companies ASAP. You may need to write to them explaining your financial circumstances and offer terms for repayment. This would be termed as an Informal Arrangement. With this option, there is no need to involve the court or an insolvency Practitioner. To make this work, you must have 100% agreement from all your creditors. As you only have 3 creditors, the likelihood of being accepted is more possible. The only main disadvantage of this is that it is not legally binding on the creditors.

As this will be an informal arrangement, there will be no problem regarding the bank account issue.

If you are not happy about doing this, then perhaps you should look at contacting The National Debt Helpline or CCCs for professional advice.

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

I was thinking more along the lines of an IVA rather than bankruptcy. Would that affect the issue with the bank account? Also, what is the proceedure with an IVA once I speak to an IP?

I would maybe look at one of the companies that get unfair charges refunded on credit cards too ..if you havent paid for 6 months I imagine quite a lot of the debt could be charges that have built up due to missing payments. (If i am correct you can claim back up to the last 6 years unfair charges on your credit cards as well as your bank accounts!)
JPJ

It may be a good idea for you to make contact with any of the IP's who regularly post on this forum. They will give you the best advice and explain how the IVA process works. Also, there are links on this page which will help you to make your decision.

Do you own your own property? If you do, is there sufficient equity in it for you to remortgage and pay these creditors in full?

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

Thanks JPJ - I will bear this in mind, do you know of any such companies?

Thanks as well Sue - unfortunately I do not own my own property, I rent it.

I've looked at the national debt helpline website, and think I will have a go at the budget plan to see if I can get any joy from the credit card companies.

Thanks all for your support so far.

If you are going to go down the road of reclaiming bank charges, most of the banks are presently awaiting the results of the OFT test case. This could poosibly take some time. If you were to enter into an IVA, any monies that you do get from claiming bank charges, will have to be paid into the IVA to give your creditors the best possible return.

If you do decide to approach your creditors in the form of a letter, include a statement of affairs as this will show them that you are having problems and any disposable income you have will be paid to them. I do have a template of a letter if you would like it - as well as a formula for calculating payments to your creditors.

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

That would be great if you send that Sue, many thanks.

Could I have a copy to please Sue.

No problem.

I will contact Andy Davie or admin and request that they send them on to you.

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

Hi
I,ve done this
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Thanks Andy!

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

Thanks, I have tried to complete this, and just have one query - would I put my credit card arrears in the "priority debt" section, or do they just get amalgamated in the "non-priority debts" section?

Your credit card debts would get amalgamated in the "non-priority debts". You can change the name if you wish - perhaps to read "Priority Credit Debts". Your creditors would in all probability favour a new name!!!!!!!!

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/