I owe the money to four companies, what can I do?

[marcino]

I owe to banks about £16000. I've got a lot of trouble to keep my repayments but I have never been late with any. The situation is geting worse every month and I want to stop it. I owe the money to four companies, most important is my bank what is HSBC. What can I do?

[iva experts]

Welcome to the Forum Marcino,

An IVA may be a solution for you, if you could post the following information it would be a great help.

-Are HSBC a dominant creditor?
-Who are your other creditors?
-What is your disposable income?

Disposable Income (D.I) is the monthly amount you can offer creditors, this is worked out taking away your living expenses (food, bills, car expenses) from your monthly income.

When calculating your D.I do not include any loan payments or minimum payments, its based purely on your monthly expenditure.

Best Regards. IVA Experts

[alan1951]

Hello Marcino

You have to be insolvent to be able to apply for an IVA.

Insolvency = Take home pay - living expenses - repayments to creditors

is a negative number

If not then a DMP is probably your option

Alan

[iva_squirrel]

Hi marcino and welcome to the forum,

I think iva experts made the right questions.
It would help if you could post some more information...[:)]

Regards,
Michelle P.

[marcino]

Hi there
HSBC is the dominant creditor. I have got a personal loan #163;10500 and #163;1500 on credit card from them. Another creditors are Mint #163;350, Aqeus Study #163;450 and CitiBank #163;500. I'm paying a maintenance for my son #163;120 and all debts left to me are a succession after divorce. My D.I. can be #163;100 - #163;120. Now my repayments are over #163;300. I have got one question. What the DMP is? I can't find any information about it.
Regards and thanks for response:)
Martin

[aguise]

Hi Marcino
This is a debt management plan it is where someone negotiates with your creditors for you to make affordable payments unlike an iva which has a set time it will continue until all your debts are repaid which can in some cases take many years. You are not protected from the creditors and they can choose to not accept but with smaller debts it can work.
Hope that helps a biot.

Ang

[alan1951]

Hello Marcino

I'm sure an expert will be along soon to answer your message, but on the figures I don't think an IVA is for you.

On debt of £16000 and with HSBC as one of the creditors you would need to make an offer of minumum payback over 5 years of £6400 ( 40p/£ ) plus on top of that there are IP fees of maybe £5000 at least.

That would mean monthly payments of around £190 I think

Alan