www.iva.co.uk

Hello Again
I thought the forum might be interested in an MBNA update,
I have been contacted by MBNA 'Customer Care' department and their 'Insolvency and Bankruptcy Manager' sent me three (yes 3!!) letters yesterday offering 'Partial Settlement'.
One letter encourages me to raise a cash lump sum, (borrow from relatives or equity on house), and pay an agreed lump sum in final settlement of the debt.
The other two, identical letters, suggest a 'reduced monthly payment plan' to be agreed with all my creditors over a period of 5 - 10 years with 'suppressed' (does this mean frozen?) interest.
Both letters then list the 'considerable advantages' of the MBNA proposal against an IVA, they suggest that a 'partial settlement' or 'reduced payment plan' will allow me to pay back my debts with, quote;

'minimum impact on your credit information and couldrepresent significant savings to you'.

All three letters then list the disadvantages of an IVA, quote;

Pay large fees, on average an IVA costs £7000
Run the risk of bankruptcy if you miss one payment
Run the risk of the IVA being rejected. This could lead to loss of fees and potential enforced bankruptcy
Have a Default registered on your Credit file which may hinder further credit and prevent you obtaining preferential rates
Have a review of your saleable assets such as your home if there is equity available

I have sent all three letters to my IP at Grant Thornton because I don't know how to answer them.
Has anyone ellse had similar approaches from MBNA [?][?][?]

On another subject, spoke to a lovely lady today, proof writer from Grant Thornton, my proposal is ready, as soon as her manager approves it it will be sent out for signatures, she estimates creditors meeting within the next 28 days, nerves starting to kick in already [:-(][:-(][:-(]

Hi northumbrian

Thanks for posting that.

Do you think where they say 'reduced monthly payment plan to be agreed with all my creditors' they are suggesting they will deal with your other creditors and make the payments to them on your behalf, or are the just wanting you to pay them (MBNA) only and deal with the others yourself ?

-Best

'5 years sticking my head into the Lion's mouth of debt !'

Hi there

I had one exactly the same as that (on previous post, can't remember when) it sounds like they have reworded it as when I had mine it read the other way round ie interest wouldn't be frozen in IVA but would with them etc etc etc

They are certainly trying aren't they? VERY trying!! [88]

Hi just curious to know, How long did it take to get from the submission of your paperwork to the proposal stage. Also going with Grant Thornton submitted all my paperwork a week ago, I've been told approx 6 weeks to the creditors meeting stage.

Thanks

Paperwork submitted 5th Feb, proof writer rang to say final draft going to manager today, creditors meeting should be within 28 days, Grant Thornton not the fastest but they are very professional and helpful, keeping fingers crossed that all goes ok[88][88][88][88]

louiseh wrote:

Hi just curious to know, How long did it take to get from the submission of your paperwork to the proposal stage. Also going with Grant Thornton submitted all my paperwork a week ago, I've been told approx 6 weeks to the creditors meeting stage.

Thanks

[V][V]Not sure, but I would think their motives are selfish, would'nt think they give a bugger about my other creditors [V]

go_4_broke wrote:

Hi northumbrian

Thanks for posting that.

Do you think where they say 'reduced monthly payment plan to be agreed with all my creditors' they are suggesting they will deal with your other creditors and make the payments to them on your behalf, or are the just wanting you to pay them (MBNA) only and deal with the others yourself ?

-Best

'5 years sticking my head into the Lion's mouth of debt !'

Fingers crossed for you. At the end of the day if it takes a bit longer but you get the right result, its better done properly than rushed through and fail, the wait is worthwhile.

Hi
I can assure you that MBNA will not deal with your other creditors on your behalf.If you go down this route you will have to negotiate with each and every one of your creditors.
Leave it to the experts................ie your IP

Sounds about right unfortunately.

'Beware of greeks bearing gifts', I think is the saying.

'5 years sticking my head into the Lion's mouth of debt !'