Hi didi3005

If creditors are continuing to add interest, I suspect the plan will go on forever.

Have you thought of sequestration? I suspect that this would provide a solution and on the basis of the information provided, any contribution is likely to be minimal if anything.

Mark

Thanks Mark for your prompt reply. I have heard of this, but I'm not 100% sure what this would involve. Could you tell me a bit about it or direct me to a website that could explain it. Just know we can't continue to go on like this. Some months we've barely any money to buy food.

Hello didi3005,

There is some basic information about LILA sequestration on the relevant page on this website (see the Alternate Solutions Zone).

Much more information is available on the website of the Accountant in Bankruptcy.

Hi Mark, had a look at the possibility of LILA. I don't think this is going to be an option, as my weekly total income is more than ?ú100. The assets are fine, as I don't have any, and I am not a homeowner. Is a trust deed a possibility,or would that be no good either because my husband only has this 1 creditor and I have the other 3?

Hi didi3005

The wage maximum is ?ú229 the last time I looked, although this may have increased recently. Hopefully ( if you know what I mean) you will be under this and the LILA will be an option. The ?ú100 is the cost of submitting the forms to the AIB's office.

The Trust Deed has no maximum or minimum creditors. I think this was a ploy by the Debt Management company to get you into a DMP.

Hope this helps.

Mark

Hi Mark

I think the LILA option isn't going to apply to us, as our income bracket is more that what they allow. As we have been in a DMP, would we be able to consider a trust deed instead to try and get out of this mess? If so, do we have to stay with the same company?

Hi didi3005

What do each of you earn per month net. Is it possible one may be able to do LILA?

I dont think a Trust Deed is an option for both as ?ú200 p/m would be insufficient for 2 of you and even at that level, you seem to be struggling.

Mark

A trust deed is an individual arrangement, didi3005, so you are right in thinking that you and your husband need to consider your options as two separate individuals. ?ú200pm should be enough for one of you to set up a trust deed, the other (the lower earner out of the two of you) may wish to consider sequestration instead.

If neither of you meet the LILA criteria at the moment then you may need to wait for legal action to happen, or until the upcoming change to the law happens which will mean you will be apply for sequestration by getting a certificate from a money adviser or insolvency practitioner.

It may be wise to get an appointment with a money adviser from a local free agency (eg CAB/local authority).

Hi didi3005,

A trust deed company may also be able to assist in this as well by analysing your figures.

It isn't uncommon for these companies to advise one partner towards one debt solution and the other towards a different one.

Hi Mark

I clear about ?ú1440 per month. I have 1 full-time and 2 part-time jobs. The 2 part-time jobs are what pay my rent. I earn ?ú1005 from the full-time and ?ú437 from the 2 part-time.I get ?ú80 per month child benefit, and ?ú40 per month for child tax credit. My husband is on long term incapacity benefit(?ú388 per month), and DLA is ?ú180 per month.

Hi didi3005

Many thanks for the information.

The figures would suggest that you seek LILA for your husband. That would help deal with the biggest loan. The LILA would have no contribution payment and would write off the debt.

Re your own position, you could look at continuing with the DMP, but exclude the bigger loan as LILA will deal with this. This gives you a more realistic figure to work with. Assuming frozen interest etc, I would guess this would take about 20 months to deal with.

Hope this helps ( a bit)

Mark

Hi Mark

Thanks for your information. Sorry to keep asking all these questions. If my husband was to proceed with LILA, what would be his first step to get things moving, and would it better to review my DMP after this? My husband had a brain injury, and he suffers from short-term memory loss, and finds it difficult to deal with anything that is to complex (filling in forms and communicating both verbally and written). Would I need power of attorney to deal with this for him? Thanks

Hi didi3005

No problem at all. It's all about getting the best ( and cheapest) solution.

If you email me your address I can send out the forms for LILA and gide you through these if need be. From what you say, as long as he has an understanding of what is happening, then this should be fine. The forms are quite basic, usual name address, income/expenditure and a few other bits and pieces. Nothing to taxing, honest.

I dont think there is an issue with the LILA or DMP timing. If it was me, I'd get the LILA done first though and get it out the way. Then look at the DMP and what is the best option.

Hope this helps

Mark

Hi Mark

I received the forms, but there are few things on it Im not sure of. Would you be able to guide me through it? If so, how would I make contact?

Thanks