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Melody2b

very worried..please help

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hello

my husband and i are both self employed (we have a retail business) and our finding it impossible to pay our monthly debts due to the downturn in our business. We would have been in trouble months ago if not for the fact we put our heads in the sand and have lived on credit for the past year or so :(

We have now decided enough is enough and before we get ourselves in even more trouble its time to face our debts and problems.

My husband contacted the CCCS last week and was told an IVA would suit us better than a DMP as the amount of personal debt we are in would take too long to pay back on a DMP. Since then we have been waiting to talk to the company recommended by the CCCS (Grant Thornton i think), we missed their phone call initially while at work and have left messages for the contact name we have there but are still waiting to actually speak to her.

We are not going to be able to pay all of our bills this month so tomorrow i am going to the bank to cancel any direct debits not on our "essential" list as drawn up by the CCCS and send a letter to each one explaining the situation. Anyone know if it is an instant thing canceling a direct debit? or are they going to give me the "its gonna take 5 working days" speech? We bank with Barclays and 3 of our credit cards and a loan are also with them .....how would i handle this? will they just keep taking the money from our account anyway and then incurring overdrawn fees (we have a £1000 overdraft with no room left) ?

Went to Nat West last wednesday to set up another account that we can move all our essential direct debits over too but it was "reffered" (only wanted a normal current account and was very surprised at the amount of information they required to set one up) and they said they would let us know so we are still waiting (going in to bank tomorrow to chase it up)

 

Nat West i noticed is a subsidiary of Royal bank of Scotland which is another of our creditors (we have 2 credit cards from RBS..) would that be a problem do you think?

 

Any do's or dont's when sending letters explaining situation to creditors?? In the pack the CCCS sent me there is a template letter for letting a creditor know that a DMP is being developed by the CCCS...can i change that to IVA and use that do you think?

 

whats the best way to send them an amount we can afford? (in some cases this will be way less than their minimum payment :()

 

can someone in simple terms please explain what happens to our home at the end of an IVA? do we have to sell or remortgage? our home is probably valued at 230k at the moment and we are paying an interest only mortgage of 188k...

 

so many worries and so many questions :(

i feel quite overwhelmed by all this and i have been feeling detached and uninterested in anything for a few months now...really trying to get myself going forward and dig ourselves out of this hole we have stupidly put ourselves in

just glad my husband found this website with all you nice people

please help us

 

Melanie

Edited by Melody2b

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________________________________________________________________

ALL unsolicited PMs and E-mails should be posted up - Not all on CAG are who they appear to be

 

 

My views are my own. If in doubt, seek professional advice. If I can help though, I will. CAG helped me!!

 

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Nat West i noticed is a subsidiary of Royal bank of Scotland which is another of our creditors (we have 2 credit cards from RBS..) would that be a problem do you think?

 

And this is relevant. Find a parachute account. You don't want to be banking with your debtors - they'll bite ya.

 

Welcome to Cag by the way ;)

 

M


________________________________________________________________

ALL unsolicited PMs and E-mails should be posted up - Not all on CAG are who they appear to be

 

 

My views are my own. If in doubt, seek professional advice. If I can help though, I will. CAG helped me!!

 

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And some templates too,

 

With the I & E I prefer the one below (you can mess around with it)

 

M

 

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html

 

National Debtline England & Wales | Personal Budget Sheet


________________________________________________________________

ALL unsolicited PMs and E-mails should be posted up - Not all on CAG are who they appear to be

 

 

My views are my own. If in doubt, seek professional advice. If I can help though, I will. CAG helped me!!

 

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Please can you update us on this one? An IVA should not be your first choice.... that sounds like cack advice from CCCS on this occasion.

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getting the paperwork ready for collection from an IVA company recommended by the CCCS. I let things get on top of me before christmas and did something very stupid. I am trying to get things moving but am finding it very difficult at the moment to get any kind of motivation going. Have lots of forms to fill out tonight that have to be ready for tomorrow.

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getting the paperwork ready for collection from an IVA company recommended by the CCCS. I let things get on top of me before christmas and did something very stupid. I am trying to get things moving but am finding it very difficult at the moment to get any kind of motivation going. Have lots of forms to fill out tonight that have to be ready for tomorrow.

 

Melody,

 

Are you sure the IVA route is best for you? With a bit of help and a bit of work you could consider sorting this out yourself. CCCS don't always give sound advice as many on Cag have discovered.

 

M


________________________________________________________________

ALL unsolicited PMs and E-mails should be posted up - Not all on CAG are who they appear to be

 

 

My views are my own. If in doubt, seek professional advice. If I can help though, I will. CAG helped me!!

 

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if my IVA is not approved by my creditors would i still be able to approach the CCCS or Payplan to set up a dmp instead? The guy i spoke to from the CCCS assured me this was so before he forwarded my details to this IVA company but i thought i better ask you guys ( i trust your advice more) .

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You can do a DMP yourself.... you don't need anyone else to do this for you at all. Why on earth do you want to enter into an IVA?.... is it because CCCS said so?

 

I hate to put the cat in among the pigeons, but there are other ways of dealing with this without tying yourself into an IVA. Have you considered whether the companies pursuing you for payment are actually legally entitled to collect payments from you at all (via CCA requests?) Have you considered re-claiming unlawful charges that may have been added to the balance (via a SAR?) How do you know that the balances on these accounts are even correct?

 

CCCS are partially funded by the finance industry and while some people may find them helpful.... I beg to differ.

 

If you decide not to do the IVA.... the first thing you need to do is open a parachute account somewhere with absolutely no connection with your creditors at all, cancel all direct debits on your existing account and then close it. This will stop anyone from dipping into your current account under the right of set-off.

 

Please let us know what you decide to do...

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Hi there

 

With the IVA, it is legally binding, all interest and charges are frozen, and you would need to maintain an affordable amount each month for 5 years before the remainder of your debt is written off. Your assets would be safe, and if your IVA is approved, this would be reviewed annually, incase of any problems.

If your IVA is rejected by your creditors, you could always enter into a DMP with CCCS or anyone else. Payplan set up IVAs and DMPs, so if you were to set up an IVA with Payplan, and your offer is rejected by your creditors, you could fall back on the DMP with Payplan. Payplan's IVAs and DMPs are free xx

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