www.iva.co.uk

Hello, I've been with an agency for just over a year know, I thought everything was going fine, I still got a few irate call telling me that this was my debt and I should pay them directly, but I was told this may happen and to just tell them the debt was being handled by a debt agency, and to basically ignore them.

Yesterday in the post I received a nasty letter from one of the companies I owe money too, and to cut a long story short, the debt which was approximately £100 a year ago, has now shot up to £245, surely this can't be right, I feel like I'm back to square one again, I didn't sleep last night, I'm fighting the urge to pace again, the tears could come very quickly as well, I just don't know what to do.

I can't even phone them to find out what is going on as my phone has packed up.

Please someone, advice me on what I should do.

Thank you

Christine

Hi Christine and a big welcome to the forum[:)]

What a horrible situation for you and I understand why you feel really upset.

I presume you are in a Debt Management Plan?

You need to contact your DMP company as soon as possible and find out what is going on. The downside to being in a DMP is that creditors are not legally obliged to 'freeze' interest on your debt and can keep applying it although lots of companies do honour the spirit of the DMP and play fair.

It is a pain that your phone has packed up, do you have a friends or families you could use.

So sorry to hear you are so upset right now and hope you get some answers soon[:)]

Emma x

Hi Christine. Emma is right in that debt management does not guarantee that interest is frozen. Depending on the total level of your debts there may be other options available to you. How much do you owe in total, how much are you paying in the DMP and have you any assets?

Thank you for your replies [:)]

My brain is in serious meltdown at the moment, but I'll try to be as accurate as possible, I owe probably in excess of £20,000 in total, but I don't think I qualify for an IVA, (which I didn't realize this site was about when I posted my question [:I]) as I can't work because of health reasons and I'm on benefits.

When I first went on the Debt Management Plan, they told me the companies didn't have a say in the matter, and that they had to accept what was offered, obviously, either I misunderstood what they said, or they were wrong, they also said to post any letter I got to them and not to worry about anything anymore, the'd get it sorted.

At the moment I'm paying £140 to the DMP but I think that includeds their fee, and no I don't have any assets, I live in a rented house and my car, which I'd be house bound without, is only worth about £500.

Christine

Hi Red Squirrel, have been looking into Debt Management Plans myself recently and as I understand it, it is not legally binding. The companies can still take you to court and can also add interest and charges onto your account, though most companies do agree to freeze the interest.

I completely understand about the not sleeping, debt is a major stress factor and can really get you down.

There are a lot of really helpful experts on here that I am sure will be along to advise you and a lot of warm hearted people that are here to support you.

Try to remain positive and if you need us all we are here.

You have no reason to be embarrassed Christine and you may have been suitable for an IVA although it does not appear to be your best option. Have you considered bankruptcy which appears to be a highly attractive option from what you say? The DMP would take 15 years if all creditors stopped interest which even the small ones have not done.

Bankruptcy could give you a new lease of life but I would suggest that you ring your local official receiver to see what their view would be concerning the car. It is unlikely that they would want it but I have heard of some who say the car is only allowed for work purposes. Others allow the car if you are searching for work or need it for medical appointments so a quick phonecall would clear this up.

Good grief, I didn't know they could take my car away from me, even though I'm disabled [:0] This just gets worse.

Do you receive mobility allowance at all? If you do and you get the higher rate then you could get a car through that.

Hi Kallis3, I get the higher rate of the mobility component of the Disability Living Allowance, I've looked into getting a car from them, but that would take a big chunk if not all of the allowance, leaving me with less than nothing to live on.

Thank you for your advice though, it's very much appreciated [:)]

Fair enough. I suppose if you need that to live on, then losing getting for £200 a month for a car isn't on.

I would think though that as you are disabled and need a car to get around that the OR would look favourably on it.

I would do as Michael suggests and contact your local OR's office and ask what their position is on keeping a car.

Given your disability I do not believe the OR would pursue the car but worst case scenario a relative or friend could offer some money for it and allow you to keep the vehicle. This would be much cheaper than taking on a Motability contract. Give the OR a ring and let us know what is said. Alternatively if you tell us what area you are in I will call and let you know.

Michael, I did what you are suggesting for someone only a fews days ago - the OR allowed the car to be bought for auction price - the chap's son bought it and has given it to his father on permanent loan.

Perfect outcome and a commonsense OR. Why seize something, auction it and pay the costs when a a little negotiation saves a lot of trouble. Good to hear stories like that.

Michael, you mentioned negotiation - my telephone call took less than 5 mins. The reply went like this - "No problem, look in Glass's Guide, reduce the value given by 40% and arrange for someone to let me have a cheque". He gave me the ref numbers to quote and that was that.