www.iva.co.uk

Hi

Please can someone give me some advice.

I have debts totalling £25k which I was paying back fine until my parents divorced and I had to find somewhere else to live. I am now having to pay out an extra £800 in rent, bills and living costs which means I can no longer afford to pay the minimum payments. I got myself into a real pickle and consulted a debt agency who said because of the amount, an IVA would be the best way for me to proceed. So after 8 weeks I had my meeting yesterday where 5 debtors agreed to the IVA but 1, MBNA, didn't and as I owe the bulk of the money to them (11k) so my IVA has been rejected. They never gave a reason, they just said that they thought a DMP would be better for me. My IP faught it out with them but they just wouldn't budge so now it has been closed.

I really don't know what to do next. I really don't want to go down the bankruptcy route as I have 2 cats and a pony (the pony is 28 years old, worth nothing and I do chores to pay for his keep so he doesn't cost me anything other than 14 a month in insurance) and im scared that they would take them on to sell. I have no other assets. I rent, I don't have a car just a push bike - would they try and take this too??

However I don't feel a debt management plan would be ideal either as I only have £200 left out of my wages and over 5 years with the IVA this was ok as its only 5 years and its all over but to pay back the full amount it will take me around 11 years and thats only if they stop the interest! I couldn't live like this for 11 years and what if my rent goes up?? I know its my fault i got into this mess but I just want to sort it out. Im a secretary so my salary will not be increasing significantly, if at all.

Im just devestated they have rejected me and am hoping someone can offer me some advice. I saw this post http://www.iva.co.uk/forum/topic.asp?TOPIC_ID=5395 and seeing as it is MBNA that turned me down, I wondered if it would be worth a shot??

Dear Mooey

With no assetts to worry about I dont know why you chose an IVA route anyway. With what you have said I believe you should go voluntary bankrupt with the confidence you will not lose your horse, your cat or your bike. In bankruptcy which is more about financial recue now since the enterprise act 2002 and the change in bankruptcy laws April 2004 you will keep all tools books vehicles and personal possessions as long as you dont own anything worth more than a reasonable replacement. I think you were being very responsible in offering an IVA to creditors, I think MBNA are relying on you continuing with debt management and will regret their decision if you opt for bankruptcy, which I am sure you will realise once you have examined the myths is by far your best option.

Can't say I disagree with you there Major. I would certainly give serious thought to looking at BR if I were in your shoes Mooey.

Regards.

So how do I find out more about BR and how it will affect me? What I have to do and what they can take from me, what I need to pay etc..? You both seem very confident that this is the route I should take and to it was my gut reaction aswell. I will speak to a specialist but I want to do my own homework first. My parents told me that they will take anything they can to see - even the animals. They are all I have to be honest.. that a collection of cut up credit cards (

What do I do whilst I am mulling it over? I have been advised to call my creditors and tell them I won't be making any payments as I am saving the £500 to declare myself bankrupt - would this go down well??

Thanks for your replies.

Perhaps if more people do decide to go bankrupt, then this creditor might change their attitude to people who genuinely wish to repay their debts, but not be tied into a neverending repayment plan. 11 years is unrealistic, and must make bankruptcy appear a very viable option.

Your beloved animals will be very safe under these proceedings, so there is no need to worry there. I am sure that your other creditors will be very disappointed that the actions of one creditor have stopped them getting paid, and perhaps your IP might like to lobby them to see if they would be prepared to stop interest and charges in a DMP. I gather that if other creditors give confirmation that this may not happen, then MBNA may well consider their position.

Good advice about bankruptcy can be obtained free of charge from the Citizens Advice Bureau - and The Insolvency Service's own website is a valuable mine of information, as is this forum.

Good luck and well done for at least trying to pay something back to the best of your ability.

Mooey, also have a look at our sister site http://www.bankruptcyhelp.org.uk/ Lots of good advice and support there. Good luck, keep posting. X

Mooey, all the best from me in whatever you decide to do.[:)]

Unless the pony is in fact "red rum" then I think it will be safe!!!

BR does sound like the way to go,quoting that you have been forced down this route by one creditor refusing an iva which your other 5 creditors were happy with!!!

Good luck.