What is an IVA

[Poppy07]

Can anyone tell me exactly what an IVA is? And the pros and cons? I have a lot of debt, I am five months pregnant and not planning to go back to work. I live with my fiancee and the mortgage is in his name. Would an IVA be beneficial to me??

Any help would be greatly appreciated.
Thanks

[sequenci]

you will need a high surplus income each month so if you're not working it may not be the best option. if you click on the following link, all your questions will be answered.

National Debtline England & Wales | Debt Advice | Factsheet 26 Individual Voluntary Arrangements

[djdave]

If you'd like to post some more details of your debts, there may be better/alternative ways of dealing with them

[sequenci]

yup, i certainly agree with dave there!

[Poppy07]

I have debts amounting to approx £30k between about 5 different companies - black horse, barclays x 2, cahoot and hsbc, as well as some other minor payments. Soon I'm going to be on maternity with my first child, and I'm so stressed about money matters that I don't know what to do. I cannot afford my repayments now and 4 out of 5 of the companies have passed my debt to a debt collecting agency.
I'm not going to be working soon so will not have the income to pay these debts. Help!!! What can I do???
Thanks for your replies.

[alibobsy]

I am sure their are others on here who can give you advice about IVAs etc, but just wanted to say I know how you are feeling. I finally got back to work 18 months ago after my second child and with the charges we claimed back off our bank from here we were starting to get sorted out financially. I am now 14 wks pregnant with our 3rd child and so we are having to go back to one salary so I can sympathise with your situation.
Firstly I would ensure you get every scrap of income you can, are you due any maternity pay at all? Make sure you claim the child benefit and you and your partner should also claim the tax credits as well.
I know a lot of people on here have used the CAB who are very good. Personnally when we had problems after my second child I worked out a budget myself and made offers to each debtor. Quite often they refused first time, but I wrote again and made the offer again and eventually they all accepted.
Regarding the DCA's I would look at the DCA section in particular the bits about making a CCA request against them. One thing I got off here is do everything in writing and never deal with them over the phone as they are not very nice and mostly threatening and rude.
Have you claimed any of your charges back yet? At the very least this can reduce your outstanding debt and may give you some cash to get stuff for the baby.
I know we would all like to buy new everything for our kids, but I found you can get some good stuff second hand. Also if anyone asked what we wanted as a gift for the baby we said vouchers (babies r us or mothercare) which you can put towards the bigger items you need rather than everyone buying babygrows which your baby only wears for a week.
Best of luck hun, being a mum is challenging, hard work and stressful, and is also the most amazing wonderful experience you can have.
P.S If you can try breastfeeding, best thing I ever did saves soooo much money, and no warming bottles up at 3am Just get up and pop them on lol. The first 2 wks are a bit hard (and a bit sore) but once you can get past that its becomes easier and easier.
Ali xx

[djdave]

There's some good advice in the above post (I can't vouch for the breastfeeding bit though.... )

My advice echoes some of that:

1) Put everything from now on in writing, never deal with these companies on the phone. Some are better than others, but it's not unknown for companies to conveniently "forget" about arrangements or promises; and they may trick you into admitting debt you don't owe. There are some excellent template letters, I'd suggest you familiarise yourself with them.

2) Start reclaiming all your bank / credit card charges. It sounds daunting, little old you taking on a multi-billion pound institution, but I'll tell you that Barclays offered me £1650 just for sending three letters! Have a browse through the Bank Action Group subforums, and don't be afraid to ask questions.

3) The debts which have been assigned to DCAs: can you elaborate? Chances are we can help. You should be putting these into dispute by making a CCA request. You need to establish the DCA's legal right to collect these debts. You wouldn't give ME money just because I wrote you a crappy letter, would you?

4) It is important to remember, above all, that debt collection agencies have to work within the law. They can posture and threaten all they like, but they cannot send baliffs round, they cannot force entry, they cannot lawfully harrass you. The Consumer Credit Act is there for your protection just as much as it's there to enforce legitimate debts. And most importantly they cannot demand more than you can genuinely afford. Assuming they can prove their right to collect, if you can only afford £1 per month then that's their problem, not yours.

Please take some time to search out threads from people with similar debts to yours, and read the practical advice they've been given. Remember: the law is on your side and CAG is on your side.

Your health and wellbeing are so important at any time, never more so than when you're pregnant. Stressing about debt is the last thing that you or your lump need, especially when I'll wager than everything can be sorted out with some care and patience.

Please please please ask for help on specific debts. They won't be stupid questions, nobody will judge you, and you'll be amazed how much help CAG will be.

[Poppy07]

Thanks so much, you really are a great help, its such a stressful time!!
Firstly what is a CCA? Is there a template? If i'm due to go on maternity in August when can I reasonably ask them to really really reduce my payments? I know I'll be working and still earning til then but there is so much to buy that I need all the cash I can!!
Also what do you mean by tax credits, I was told that I would get £108 per week SMP and £18 ish child benefit a week. How do I apply for anymore? Its bizarre because you have less money and more to buy I don't know how people manage it!!! Plus my partner is self employed and on a good wage but you live to your means don't you, so all his money is allocated elsewhere too - mortgage, bills etc!!!
I will definitely put everything in writing, I've had a few phone calls lately that have almost had me in tears - i'm normally quite a tough cookie - I blame the hormones!!!
Barclays has given my debt to Moorcroft and a company called NCO, whilst HSBC have passed it to D G Solicitors, Black Horse have just sent me court papers as well as sending the bailiff around so I now have to fill out a request for reduced payment and surprisingly enough pay a fee to the court to do it!!! My other debt is Cahoot which my mother took out for me for 10k to consolidate credit cards etc, and I pay £190 a month for that, but I have no choice as my mother would kill me if I defaulted on it!!

Thanks loads Ali for the parenting tips - its so daunting!! Luckily my family and partners family are buying a cot and pram, which is the biggest expense, and vouchers seem great idea, tho my family have told me to make a wish list for everything I need - ah bless them - i'm one of six which is great!!

I'm actually starting to think that money worries won't be so bad now after posting on here, so I really can't thank you enough!!
xx

[Josamolly]

a CCA is a signed agreement that all financial institutions must have a record of when you sign up. If they haven't got a copy,then the debt isn't enforcable..

Have a look here....

http://www.consumeractiongroup.co.uk...tml#post162367


Also, i have used this site before and it tells you what you are entitled to...

entitledto

Not sure if any of this will help, but good luck anyway..

JOS

[djdave]

Glad we're being some help!

One step at a time, and let's start with Black Horse because you say they've sent you Court papers. This is really important: did Black Horse send them, or were they sent from the Court? It's a very big no-no for a bank to pretend to have legal power or to misrepresent themself. If they were from the Court, what are they asking? I might be a bit out of my depth on this one, but the more information you can give, the more helpful we can be.

Moving to the debt collection agencies, a CCA is a request under the Consumer Credit Act for a copy of the executed agreement. In the templates library there's letter N, make sure you include I do not acknowledge any debt to your company. You'll need to send a £1 cheque or PO, make it known that this is not to be set aside any alleged debt. Send one to each DCA, by Recorded Delivery (£1.04 each).

This will, at worst, buy you some time. The creditor has 12 working days from receipt to respond, after which time the debt is legally in dispute and they cannot enforce it. After a further 30 calendar days they are committing an offence.

You'll get one of several outcomes:

• Nothing. This is good, as they cannot enforce the debt while it's in dispute.
• A delaying letter, possibly asking for more information. Tough, the deadline is laid down in the Act and is their problem, not yours.
• An agreement. If you receive anything, please post as many details here as you can. Even better, scan it (deleting all personal details) and post it on Photobucket or similar. It may well be unenforceable.

The worst that could happen is that you get sent a totally valid Agreement, and the DCA is perfectly entitled to collect the debt. Again, no real panic because they CANNOT get blood from a stone, no matter what they may think.

If this happens, send them a budget planner which shows your income and expenditure. We'll cross that bridge if and when we come to it, but remember that if you can genuinely only afford a token amount, that's what they'll have to accept.

Hopefully you're already realising the situation is nowhere near as bad as you though a couple of days ago. With a few letters, you're well on the road to getting this sorted without getting dragged into an IVA or paying any rediculous fees!

[Poppy07]

It certainly does help, thanks loads - those templates are great! When can I ask them to reduce payments due to pregnancy?
Thanks

[Poppy07]

Thanks djdave, your right! I've had a look at the templates and I know what you mean - first things first, i'll send out a CCA to all companies recorded delivery asap. Can I still send one to Black Horse? Also do you know where I can find the correct addresses?
The court papers re black horse actually came from the court, they said I owe them £10500 and they want it now basicallly. I rung the bailiff who delivered them and he sent me papers to request reduced payments, which I filled out last night and will take to the court Friday.
Is that enough info?

Thanks loads!

[djdave]

I'll confess ignorance when it comes to your court papers, and I'd rather give you no advice than duff advice. DCAs are one thing - they've got as much legal power as the kid who shoves takeaway menus through your letterbox - but once you start dealing with Courts and baliffs it's essential you get accurate advice.

What I'd suggest is start a seperate thread about Black Horse, as people skimming the forum will think this one's just about IVAs.

Copy 'n' paste what you've already put about BH, and a link to this thread, and you'll probably get far better advice than I could give.

[Poppy07]

Ok thanks. Will let you know when I have send CCA requests. Also where does the authority come from to pass your debt to a DCA? Look at me using all the lingo!! I didn't have a clue what it meant a minute ago!! Tee he!

[djdave]

Sadly it'll be in the T&Cs of your credit card / loan that the company can pass your details on if you default.

Of course, if that agreement turns out to be invalid in the first place: can... open... worms everywhere!

Keep the Recorded Delivery slips safe - they might turn out to be some of the best £1.04s you've ever spent!

[alibobsy]

CTC is Child Tax Credits you should be able to claim this along side the child benefit. You would claim as a couple and as I understand it unless your joint income was over £52k you should get some kind of award.
ali x
BTW good luck with your black horse claim hope you get it sorted, funny how it seems less stressful once you start facing up to the debt lol. Done the head in the sand bit myself many a time.