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Lizzie
New Member
United Kingdom
59 Posts |
 Posted - 30 January 2009 : 18:15:03
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My husband has been to see the CAB today and they have given him loads of forms to complete. When he got home he had an email from one of his Credit Card Companies to whom he owes the most money and they are offering to write off 65% of the total debt and if he accepts he will pay off the other 35% over a 3 month period. At moment he is in a position to do this and this would certainly improve his situation.
Would it be wise to take advantage of this offer? he is only in debt with credit cards not the mortgage or utilities. |
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Lizzie
New Member
United Kingdom
59 Posts |
Posted - 30 January 2009 : 18:34:34
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Thanks Jo I was thinking it would be a good idea to take the offer, it shows that sometimes it does pay to contact these companies and tell them the difficulty you are having as in doing this my hubby has had a good result.
He will still fill in the forms for CAB and see what advice they give us.
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 30 January 2009 : 18:48:20
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HI lizzie
Obviously if you can avoid Br then this would no doube be better for everyone, including the creditors.
However I would recommend you speak to an expert who can go through ALL of the solution to debt to see how they impact you and the family and indeed if they are possible.
Why didn't the CAB review the WHOLE picture with all the possibilities before recommending Br?
Incidentally there may be better deals available given the right circumstances.
I am sure the helpline have had some good results recently as have we because in tough times the creditors are getting a little more twitchy about loosing everything in Br.
It is not uncommon to achieve 35% for MBNA, and we have recently achieved 25% for Nationwide ( 20k debt)
however please bear in mind this depends upon the situation, home ownership, disposable income etc etc .
Please get some help before you part with your money. You only get one chance to make it go as far as possible
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
Real People ..... Real Debt Solutions
www.revivauk.com |
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Lizzie
New Member
United Kingdom
59 Posts |
Posted - 30 January 2009 : 19:06:41
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Hi Paul, thanks for your reply, unfortunately my hubby only spoke to the CAB today, he has been trying to see someone all week, he explained his situation and they sent him away with a load of forms to complete and get back to them, then they would get him an appointment with one of their debt advisors. MBNA have been chasing my husband for larger payments for months now and I think they thought it was better for them to write off 65% of the debt (total debt was over £10k)then risk him declaring BR.
I am hoping now with this credit card solved he can get a reduction on the payments to the others, his total debt was about £20k,which has now reduced to £10k. We still have the house to sell to repay the mortgage company within the next 2 years and after that is done we might be broke but will not owe anyone......well here's hoping we can avoid BR.
This is a brilliant site by the way and has really helped me. |
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RHB
Senior Member
1159 Posts |
Posted - 30 January 2009 : 19:13:28
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| Fingers crossed for you Lizzie |
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sjbyron
Average Member
United Kingdom
746 Posts |
Posted - 30 January 2009 : 21:27:42
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im not sure, but wouldnt this class as an informal arrangement, and wouldnt it be seen as preferential treatment from one creditor from the others.
Have you thought about doing a full and final IVA with a 35% dividend to the debt, if you could post how much you have available in the three month time frame and your total debt and to whom then we could advise whether a full and final iva is suitable.
Hope that helps
Stu J Byron |
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Lizzie
New Member
United Kingdom
59 Posts |
Posted - 31 January 2009 : 08:53:12
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| Hi Stu, we have not looked into taking an IVA as my husband's job is not looking so good and he could be out of work in the next 3 months, hence the reason he looked to become bk. As he would have paid off MBNA in the next 3 months and if he still decides to go bk later in the year, he won't have to mention MBNA as the balance will have been paid off is that correct? The amount my husband is paying MBNA is about £2,700 over the 3 months to settle the debt. |
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Lizzie
New Member
United Kingdom
59 Posts |
Posted - 31 January 2009 : 09:07:52
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| Thanks for that info Jo, my husband is determined if he can to remain out of bk and is going to take MBNA up on their offer. I am in two minds if that is the right road to go down. Only time will tell. |
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RHB
Senior Member
1159 Posts |
Posted - 31 January 2009 : 11:23:52
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| I can't see there would be any comeback cos it's with a bank rather than settling a debt with a family member or friend. And if he can avoid going bk altogether by doing this so much the better!!! |
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sjbyron
Average Member
United Kingdom
746 Posts |
Posted - 31 January 2009 : 15:04:23
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Hi
As Jo said its upto you to decide on BR or not, however I would say if your husband is going to loose his job and you are considering BR later this year then why pay MBNA why not use that money to do your BR now, put on your SOA that you husband is going to loose his job,
Just a thought
Stu J Byron |
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sjbyron
Average Member
United Kingdom
746 Posts |
Posted - 31 January 2009 : 17:58:53
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Thanks Jo
Nice to see you back, really missed you, my friend.
Stu J Byron |
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Lizzie
New Member
United Kingdom
59 Posts |
Posted - 01 February 2009 : 17:34:22
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Thanks for your thoughts, my OH job seems to be going on a month to month basis, his company just love to pile on the stress  thats why he is trying to hold off going bk and thinks if he can get his creditors to write off most of the debt he will be able to ride it out, so to speak. He retires in October and is hoping to hold on to his job till at least then. We can only keep our fingers crossed.
Your help has been invaluable to me |
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sjbyron
Average Member
United Kingdom
746 Posts |
Posted - 01 February 2009 : 20:56:03
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Hi
Deoendent on the amount of pension he recieves per month and dependent on your expenditure at the time of retirement, he may not get an IPA,
What is stopping him coming to a negoitable agreement with his employer to retire him early, use some money to go bankrupt and pay some to the creditors and therefore goin onto a less stress life.
Alternatively what is stopping a negotiation for an early retirement with a lump sum payment and this paynment being used towards a full and final iva usually a dividend of 30p/£ is required.
Hope that helps
Stu J Byron |
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Lizzie
New Member
United Kingdom
59 Posts |
Posted - 01 February 2009 : 21:54:00
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That thought had never crossed our minds Stu as my husband does not have a pension with the company he is working for, so I doubt his company would be interested in paying him off. He has a private pension and a forces pension which he is already in receipt of.
My goodness its all a mind field and knowing which way to go is so difficult, I really appreciate all this advice. I really think my husband needs to take advice, he is already talking to the CAB and completing the necessary forms and they have already told him to open another bank account away from the one he has now, just incase at a later date he does go bk.
Its all getting confusing for me |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 01 February 2009 : 22:04:06
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Hi
just a note regarding the private pension. You need to see if the pension is "touchable" by the OR of if there is the possibility of a lump sum payment during the Br period.
As you have probably worked out by now there is a lot more to this than form filling ( that really is the easy bit).
You do need to make sure that you have a good understanding of all the options open to you and how each will effect you and the family.
Only then are you in a position to decide that Br is right for you.
Please take advice
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
Real People ..... Real Debt Solutions
www.revivauk.com |
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Lizzie
New Member
United Kingdom
59 Posts |
Posted - 02 February 2009 : 19:14:38
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How do we find out if the private pension is 'touchable'? my OH has completed the forms for the CAB and will take them in tomorrow then we have to wait to hear back from them.
We have worked the figures out and are getting a bit worried as what we have coming in and what we have going out excluding our debts leaves us with a big surplus at the end of the month. If we use this surplus to pay the debt then we should be breaking even, but we're not.
I don't know whether going down the road with the CAB is the correct road to take and maybe we need to talk to someone in detail who can show us where we are going wrong.
Where would be the best place to start with this? |
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Offer from Credit Card Company
