Thinking of an IVA - Loan mistake on form

[London1971]

Am I correct that they haven’t defaulted yet?

[Pk786]

Yes so is the solition send all your creditors letters offer pro rota payments that will take 20 years to clear 

[London1971]

Yup! Or keep extending payment holidays and pay nothing.

[Pk786]

So whats wrong with iva after 6 years its clear 

[London1971]

Because It has the same effect as letting everything default and pay nothing. If you don’t own a house there is stuff all anyone can do to you . 
 

IVA means you are throwing money away that you don’t have to. No commission earning IVA company will explain this to you, it’s a massive con.
 

And it will all be statute barred in 6 years without you paying a penny, anyway.
 

So either make token payments, stop the defaults and hope things get better, or stop paying everyone. Naturally you need to make sure all your creditors have your current address though.

 

[Pk786]

ok so you are saying 

1. write to your creditiors with pro rota offer what time scale shell I give them for eg I will pay you £40 pound for how long 

2. so after 6 years from when the day I took loan or from this arrangement ?

3.if they don't accept then what?

   

[Pk786]

I think the bottom line is pay the minimum you can for next 6 years after six years it will be written off 

my only q is what if creditiors don't accept my offer

[dx100uk]

Get something in place and operating.

Then you are 'stable' for say 6mts.

 

Then you can revisit

By doing an iva etc, you cant undo things.

On a salf managed dmp you can vary things.

 

Just remember if they refuse to freeze int and penalty charges in writing

Then you send letter 2 which basically says stuff you, you didn't help me as you are mandated to do.

All you'll get now is £1pcm for life.

 

Take control...it's YOUR MONEY.

 

Dx

[London1971]

2 hours ago, Pk786 said:

I think the bottom line is pay the minimum you can for next 6 years after six years it will be written off 

my only q is what if creditiors don't accept my offer

I’m afraid that’s not quite correct. The statute barred clock is reset every time you make a payment.

 

if you pay them the minimum it will never go statute barred although it will disappear off your credit file after 6 years, forever invisible to any potential lender. Although they will still be enforceable.

 

If you didn’t pay anyone another penny from this day on, they would all default In a few months, and they would disappear off your credit file & be unenforceable after 6 years. AKA Statute Barred.

 

Of course during that period there is a chance the debts might get sold on and some of them might try and take you to court. Although that’s not a given, and of course you can defend.

 

Either of the 2 above options are preferable to an IVA. Bear in mind your credit file will also suffer significant damage under an IVA also. Despite throwing ridiculous, unnecessary money at it.

[Pk786]

Can creditors ask you where u spent the money? 

[London1971]

Nope. 

[Pk786]

So creditors will.look at how much they will get back? 

[London1971]

Read back through the advice given. You can either write to each creditor as suggested offering x amount per month.

 

Or just stop paying and let them default. Your credit will be damaged for a while but likely you won’t pay anything back ever.

 

An IVA is the worst of all worlds because they control your money, make you pay a

fortune, and damage your credit file

[Pk786]

Thxs one final q 

If do go through with iva will this affect my partners british nationality application no joint debts 

[dx100uk]

not sure where you have been reading but lots of the info you seem to be relying upon to make an informed decision upon what to do is extremely poor.

 

debt in the uk is not a criminal offence..

debt is a civil matter.

 

just do a very basic sheet listing your debts

and inc that with you pro rata letter I pointed too.

 

do not do an iva or any official arrangement.

 

 

[London1971]

28 minutes ago, Pk786 said:

Thxs one final q 

If do go through with iva will this affect my partners british nationality application no joint debts 

.Nope 

[Pk786]

Afrer creditors will recieve my iva proposal or i will be dealing with them have not decided yet

For eg natwest 20k loan was in jan 2019 will they investigate where they money went to b4 agreeing to a propsal or iva 

[dx100uk]

threads merged

please keep to one thread.

 

they wont/cant investigate anything...none of their business!!

 

just do the pro-rata route as already advised

[London1971]

Honestly , you have been given brilliant advice here  yet you are still considering an IVA.? 
 

Oh and it really is none of their business what you spent it on.

[Pk786]

Contacted shawbrook they said no

 

[dx100uk]

about what?

and how did you contact them?

 

 

dx

 

[Pk786]

I phoned them about token payment

 

Seems alot of hassle dealing with all of them getting default letters etc 

[dx100uk]

who ever said to ever use the phone for any debts?

 

you use the pro rata letters.

if anyone refuses 

you use letter 2 and drop them to £1PCM for life.

 

you'll get default letters anyway 

 

 

 

[London1971]

Oh God you rang them? How many times have we said on here and other threads not to.

[Pk786]

Where is pro rata leteer 1