www.iva.co.uk

I have just received information from Payplan that I can't be approved with IVA as we would be ble to replay our debts with DMP in minimum 3 years if the creditors decie to freeze the interest and stop charges.

This is my current financial situaton:
Income:
1. Mine £1100
2. Husband £1550
Total £1650

Mortgage with Woolwich Barclays
Repayments of £535 + £100 (arears for 10 months)

Secured loan with Welcome Financial Services £345 monthly.

List of Creditors
1.Barclays Bank Plc overdraft 1,534.59 (husband)
2.Barclays Bank Plc loan £ 12500 (husband)
3.Home Retail Group -Argos £ 485 (husband)
4.Barclays Bank Plc overdraft £3,077.91 mine)
5.GE Money Ltd (santander) £ 850 (mine)
6.MBNA International Ltd £ 2650 (mine)
7.GE Money Ltd (Santander)£ 560 (mine)
8.Next Retail Ltd £ 320 (mine)
9.Dell Financial CIT £ 2490

Totals: Total Owed: £ 24467,50

Have you spoken to creditors re freezing the interest? We are in similar situation. Creditors are very reliant to freeze interest and even increase it if you are making smaller payments on a DMP!
If the creditors froze the interest then they would get eveything they are owed back, so surely its in their best interests rather than an IVA or Bankruptcy?!?

i would try another iva firm, i can highly recommend melanie giles on here she helped us out alot. Firms will only freeze interest for a year at the most usually, and when i contact our creditors to ask to freeze the interest the answer was no. But debt management firms seem to get them to stop for a little while. hope you get sorted hun i know how much stress this all causes

When my situation changed last weekend with a job offer, I was advised by many that an IVA wasn't for me now so I am going the DMP route and praying for frozen interest. My creditors would know that I was going the IVA route before and would have had 31p per pound of the debt. I'm hoping that me paying back everything will encourage them to freeze and I'll have £43k paid back in about 3 1/2 years.

I have Gregory Pennington working on mine, I hate talking to the creditors separately.

Nic x

Well I've tried contact the creditors.
Barclays said NO to all of my offers and did offer anything back and I've sent them few letters. They even sendt so called Debt Collector from Scotcall to my house.
I don't have any equity in the house either.
Some others like CTI reduced monthly payments by £30 only for 6 months.
To be honst DMP is good thing but you don't have no guarantee. Even if they freeze your interst for a while they will still start sending you letters.

I really don't know what to do. I need a piece of mind finally!!!!!!

Hi Ndorka. It appears that Payplan think you have a surplus of £700 per month which means that they have allowed you about £970 for living expenses. I do not know what your travel, insurances, heat and light, pets etc are but it may be worth having a second opinion.

Consolidation does not appear to be an option as you have arrears and a DMP may well be the best option because if MBNA reject your proposal an IVA would not be accepted.

ndorka welcome to the forum, I would definitely seek some professional advice from two or three companies, a good place to start is to read the review on www.iva.com

Why not contact one of the professionals who post on the forum they all come highly recommended for a second or third opinion it's all free.

I agree that you need to speak to a number of companies to confirm whether or not you are suitable for an IVA.

However, if you can get the creditors to agree to freeze interest and charges, then three years in a DMP has to be better.

Seek further advice though.

How much did Payplan calculate that you could afford to pay to creditors on a monthly basis?

They've calculated it to be £580.55 however they've made a mistake us they've put less in my mobile phone and petrol column. So the surplus accually would be £450,55.
What happens if I work overtime?

If you are in a DMP then your overtime probably won't make much difference and you will be allowed to keep it all.

In an IVA, then what usually happens is that you are allowed to keep the first 10% over and above your usual monthly take home pay. The amount after that is split 50/50 with your creditors.

Anyone recently dealt with DMP Payplan? How long it takes to arrange staff? Anyone dealt with CCCS?
Did they manage to freeze interests on your debts?
Who does agree to freeze interest and who doesn't (I mean creditors)?
What is your experiance?
Mine are with Barclays (70 %), MBNA, Santander, Next, Argos, CTI

I think it varies from creditor to creditor. The fact that they will get their money back in a relatively short time may help.

Personally, I used a fee paying company and all of my interest was frozen with reviews every six months to see if anything had changed.

I think both companies have had mixed reviews on here with regards to DMP's.

Payplan said I dn't qualify for IVA.
Differnt company is just preparing my proposal for IVA (Mitchell Farrell)
What to do?
Can I still withdrawn from MF before the proposal is accepted?

You can withdraw from an IVA at anytime prior to acceptance.

I've not heard of Mitchell Farrell, but you could always see what their proposal is like.

Have they said what your monthly payments are likely to be?