Iva Help?

[bilious]

Hi there!

 

Just joined this brilliant forum!!! Long story short am in debt... 4 credit cards fairly maxed am behind on payments with two of them am in talks with one of them to go for a formal arrangement? the other has already issued me with a default notice!!! Wife has been ill for some time but getting better had to live off one wage for best part of a year, hence the cards (all unsecured.) in my name, only the overdraft is joint name any advice please please on what to do? Have two young children 5months and a four year old live in shared ownership so they can't go after house (hopefully as not enough equity.)

 

All in all am about 28k down any advice for me?

[loobyloo85]

Hi there

 

You would need at least £150 surplus to enter into an IVA. The IVA with some companies do not charge anything to set up, so you would not lose anything by trying for the IVA. If your creditors do reject your offer, you could enter into a more informal arrangement such as a dmp. If IVA approved, you can pay in your surplus payments for 5 years and then the remainder of the debt will be written off.

With you living in shared ownership property, you would not be able to remortgage to release a lump sum to pay into the IVA. Therefore, a lot of IVA companies will ask for you to make an extra 12 months payments on the end of your IVA in leiu of any equity.

 

I hope this helps. Some feel the IVA is the better option, as bankruptcy can be too harsh and dmps can take too long x

[bilious]

Yes that does help thank you!!! Have had a couple of default notices sent in the post with the fact that i'm behind on my payments etc! What exactly can i put into the iva? Only our overdraft is in joint names and all the cards and loans are in my name only.. i don't want this to affect my wifes name or will that happen anyway? Thanks in advance...

 

Again i must say that i'm not trying to avoid paying it's just it's all got too much whilst wife was off with baby etc... but as i've found out the banks bless em don't care....

[loobyloo85]

The banks, as horrible as it is to say, do not care. They only care about getting their money back.

However a lot of banks favour the IVA as they would rather get a percentage back in 5 years than hardly anything over a long period of time.

You can put all unsecured debts in the IVA, including any that you are jointly liable for, such as your overdraft. You can include all cards and loans that are in your name. As your overdraft is in joint names, it would be best for your wife to open a new account or take her name off the joint account, so that her income is not affected by going into this account. If yours and your wife's income continue going into the overdraft account, the bank could freeze this money. Therefore, the IVA company will suggest for you to open a new bank and transfer all monies over, to someone not linked to anyone you owe money to. They will suggest to your wife to also move her monies to a new safe account.

I do not think for one minute that you are trying to avoid your debt, coming on here, and asking for advice is the first step to resolving your debts once and for all.

All the best and I would be interested to hear how you get on.

Dont forget to pick an IVA company that do not charge upfront fees.

[bilious]

Thanks so much for that? i think there's a couple of links to iva companies that do this for free? think i saw them in nationaldebt line uk or cab not sure but will look into them as i've said as long as i doesn't affect my wife i'm happy'ísh, do you have any suggestions as to who i should look at?

 

Many thanks in advance..

[loobyloo85]

Debt Free Direct, Payplan and CCCS are all free IVA companies.

 

All the best

[bilious]

Hiya! Thanks for that will try the cccs, spoke to my bank the other day can't believe how obnoxious the guy was!!!! Anyway started off i had 700 pounds to spare every month acccording to them ( i wish!!!!) after i went through all incomings and outgoings he still said you've got 300+ to spare which is rubbish, and they refuse to base the payment plan on my basic wage... Cos i do a lot of overtime (which will not last..) they say well you earn this much blah blah... So i said if next month my overtime stops how do i find that extra 400 pounds?

 

Then he said cut down on your houskeeping!!!! i replied so stop buying food for wife and two children? He replied yes i lost it (sorry!!!!) then just said look will have to call you back to his threats of defualt notices payment in full and the bailiffs.... Is he allowed to do that get the dreaded bailiffs in?

 

Again thanks in advance....

[loobyloo85]

Hi Billious, normally a creditor would issue a CCJ against you, which you would have to default on, before they involve bailiffs, so this could be a threat to try and get a payment from you. If you receive any bailiff letters, post them on here and someone will be able to advise.

If you are going to do an IVA through CCCS, you could send them any legal letters you get which they will deal with on your behalf. Once your IVA is up and running, you will then no longer be chased for any of your debts

[Nick Pearson]

Debt Free Direct, Payplan and CCCS are all free IVA companies.

 

Hi What do you mean these are free IVA companies? They charge a fee to customers just like any other IVA provider. Thanks to the IVA protocol the fees charged by IVA providers are pretty fixed so I think this post is more than a little misleading.

[sequenci]

I think loo was saying that those firms do not charge an upfront fee. All IVA's will make the IP money but the aforementioned firms are not going to rip you off.

 

As an aside, an IVA is the right option for VERY few people, is there a property?

[loobyloo85]

Thanks Sequenci, that is what I meant. There is no upfront cost with these companies, as all fees are built in within the arrangement. Even once the IVA is approved, the debtor does not have to pay any more than their agreed monthly payment, as fees are taken out of this, and it is the creditors who agree to forego this money x

[Wintry]

Debt Free Direct, Payplan and CCCS are all free IVA companies.

 

Hi What do you mean these are free IVA companies? They charge a fee to customers just like any other IVA provider. Thanks to the IVA protocol the fees charged by IVA providers are pretty fixed so I think this post is more than a little misleading.

 

Hello Nick

 

Agree with you here (not withstanding any up front fees as mentioned by other posters)

 

However I was just wondering what your opinion would be of any 'partner or sister Debt Management companies say' that may look towards introducing 'customers' to an associated IVA provider after first putting them on a temporary Debt Management Plan or charging them an up front referral fee perhaps.

 

Have you ever heard of this type of thing happening Nick?

Edited February 18, 2010 by Wintry

[Nick Pearson]

Hi Wintry

 

I'm a great believer in the trial DMP system as I think its a useful for people to learn and adapt to the realities of livng in a budget before the more formal process of the IVA. The newly revised IVA protocol asks IVA providers to detail previous debt solutions put forward by the customer but many of the providers already do this anyway for the reasons noted above.

[Wintry]

Hi Nick

 

Thank you for a very steady reply.

 

I can definitely see the logic in what you are saying if all the payments and monies went towards reducing a persons debt while they were awaiting their IVA(S) to be decided, agreed, confirmed or maybe rejected.

 

Is this how it usually works Nick ?

 

If it does not, then would it not be better for someone to use an IVA provider who do not charge up front fees ?

 

I ask this with respect and that it is everyones personal choice at the end of the day.

[bilious]

HI there sorry have been a bit unwell as of late, there is property but it's shared ownership!!! So no good for the charging order letter they've just sent me (probably to frighten me...) Am very angry about this as i've not refused to pay just can only afford 50 pounds a month!! To each of my 4 cards (have not been issued with a ccj, or final demand, just a default notice...) Now global v (lovely people have stopped calling me...) they want me to set up a direct debit to pay off an amount every month, am very suspicious about letting em have access to my account what should i do?

[loobyloo85]

Yes, if it is housing association property, I am not sure that they could issue a charge against this.

It is probably best not to set up the direct debit with Global - you can make your own payments to them without having to set up a DD and let them have access to your account.

x

[bilious]

I thought so cccs have told me never to set one up as they will dip into my account whenever they want and take what they want... I have them set up as a bill on my online account, so i can pay whenever i want! They don't have access to this do they? (answering my own question there, because it's just down as a bill i pay whenever i want..) The very charming lady i'm sort of speaking to said borrow from friends and family and they would in no way take money from my account... Mmmmm believe em not.... Am chatting to a guy from cccs later on and will go through expenditure etc and he'll advise me on what to do hopefully... Will let you know how i get on...

[Wintry]

Hi Nick

 

Thank you for a very steady reply.

 

I can definitely see the logic in what you are saying if all the payments and monies went towards reducing a persons debt while they were awaiting their IVA(S) to be decided, agreed, confirmed or maybe rejected.

 

Is this how it usually works Nick ?

 

If it does not, then would it not be better for someone to use an IVA provider who do not charge up front fees ?

 

I ask this with respect and that it is everyones personal choice at the end of the day.

 

Are you still looking in Nick?

[stewpots]

I think loo was saying that those firms do not charge an upfront fee. All IVA's will make the IP money but the aforementioned firms are not going to rip you off.

 

As an aside, an IVA is the right option for VERY few people, is there a property?

 

This confuses me ??

 

I have £85,000 of debt and am/was going down the IVA route which looks like to be around £450 a month.

 

However I have had a number if unexpected bills ,large MOT bill, plumber, Gas etc that means I went £600 Overdrawn this month.

 

Obviously I know I can’t go ‘over drawn’ with an IVA

 

I still think the IVA has to be the best route

 

I have cut my mobile phone bill down from £45 to £10 a month and there are lots of things I can do.

 

Funny since I posted yesterday I have been hassled by two new debt collectors, assume debt was passed on after 6 months.

 

I always make token payment and keep all my credit card companies up to date

 

I don’t want to go bankrupt but surely IVA would be best route, I also thought bailiffs /court are the last report for credit companies? I have spoken to the CCSS etc and have dialogue with an IVA company.

 

I have no assets any help suggestions? My partner does not want me to go bankrupt.

 

I was made redundant from a very well paid job in London and was out of work 10 months, I still have mortgage arrears

 

Current job pays well under half what I was on , although over time seems likely and I might be able to get some consultancy work.

 

I ‘assume’ no IVA would be accepted with less then 25p/30p in the £1 ?

[loobyloo85]

Hi there

 

The IVA is an alternative to bankruptcy, and for many people is the better option. I know that some companies are now putting forward proposals offering a return of 10p in the £, but it depends what creditors you owe to, as to whether they accept this, with them all having different requirements in the IVA.

Until your IVA is set up, unfortunately the creditors may contact you to chase for money. However as soon as your IVA is approved, they will no longer be able to do this, and all interest and charges will be frozen.

You are right in saying you cannot have an overdraft in an IVA or any form of credit. However, what you would need to do is include the overdraft along with all other debts in the IVA, and then change banks to someone not associated to your creditors to start afresh, so all monies are safe.

[stewpots]

Hi there

 

The IVA is an alternative to bankruptcy, and for many people is the better option. I know that some companies are now putting forward proposals offering a return of 10p in the £, but it depends what creditors you owe to, as to whether they accept this, with them all having different requirements in the IVA.

Until your IVA is set up, unfortunately the creditors may contact you to chase for money. However as soon as your IVA is approved, they will no longer be able to do this, and all interest and charges will be frozen.

You are right in saying you cannot have an overdraft in an IVA or any form of credit. However, what you would need to do is include the overdraft along with all other debts in the IVA, and then change banks to someone not associated to your creditors to start afresh, so all monies are safe.

 

Thanks

 

If I send a revised payment plan to my IVA company explain that my partner couldnt reschedule her own loans and I could only afford less is that the best thing to do ?

 

I note each year they will review depending on your salary etc

 

I just know at present i cant afford £450 a month

 

The IVA people must have chased me 10 times and I havent got back to them , not really helpful

 

The one thing I have done in this mess is keep people informed

[bilious]

Just some more, is it better for me just to accept what the cccs are saying and to try and get the 4 credit card companies and a little left on my loan to accept the 200 pounds a month they think i can afford, or to try the disputed card way? They've not mentioned an iva to me at present just the dmp route (my mum has given me some money bless her..) to get rid of the overdraft that we have so my wife will have no links to me when hsbc start getting shirty, as they no doubt will, both have issued me default notices etc so as i've said is it worth me trying to dispute etc?

[sequenci]

This confuses me ??

 

In a nut-shell (for most people - there may me mitigating reasons why this may not always be the case)

 

If there are no assets (e.g. a property) then Bankruptcy is a faster, cheaper and often much easier option.

 

If there is a house an IVA is likely to have an equity clause which could actually end up costing the individual more in the long run.

[sequenci]

To follow on from sequenci, Bankruptcy can be beneficial in certain circumstances but do bear in mind the potential effect it may have on employment, tenancy agreements and if you want to get a mortgage in the future it may be very difficult.

 

Thanks

 

All the same with IVAs

[bilious]

Sorry try to do it properly again, have 4 credit cards am behind on 2 of them, Have had health issues both wife and myself, cannot afford the minimum payments that we were paying hence i've fallen behind, the two companies have issued default notices mbna and hsbc, i have requested to lower payments with mbna which they've accepted for time being (severe hardship etc..) just had final demand from hsbc through post just now, have tried talking to them on phone and got nowhere, so letter gives me 14days etc, think i saw similair letter on here? Will phone them up and try and get reduced payments with them, have contacted cccs they went through I&E with me and say i can afford 210 a month ( i wish...) and they would act on my behalf to get this implemented? property is shared ownership so they've got no chance of selling and making their money there, we are shifting accounts now so wife has hers separately from me! but have seen threads about trying to put the account in to dispute ( i do want to pay these debts off but feel they are not going to go for this...) feel terrible and don't know where to go so please help if anyone can? what about an iva could i get that or is it better going to court? get the ccj and only pay what i can afford?