40k debts, 36k pa salary - IVA?

[Anna]

Thanks Kerri,

I was just wondering about that creditors meeting - do not understand if I have to be present or not..

So thought a London firm (I am from London) may be better.

http://anna.blogs.iva.co.uk/

[kezza]

You are not present it is done by fax and phone, you will have to be available on the phone on the day of the meeting

[Anna]

Sight of relief.....Thanks for that info

http://anna.blogs.iva.co.uk/

[scaredkez]

thats right anna you donot have to be present i was given the option to if i wanted, some know a couple of days before also in regards to the votes as some get the faxes in early, but you do need to be contactable by phone on the day i was also advised to have access to a fax machine or e-mail so any modifications could be sent to me straight away for signing.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[Anna]

Thanks Kerri - I have high blood pressure, could not be present at a meeting like that in person, would probably kill me...

http://anna.blogs.iva.co.uk/

[scaredkez]

your welcome anna, its all paper work on the day really, stop stressing!! it will all come good i am sure fingers crossed.we are here anytime you need to let off steam, we have all done it ourselves.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[Anna]

The reason I am stressing is that I would like to get it sorted ASAP and my salary is coming in on the 26th... Not sure if I have enough time to:

1) Open a new bank account and pass the details to my Payroll
2) Find an IP who will take me on and who I can feel comfortable with, who will help me to set up an IVA for under 500 per month
3) Cancel all DD from old account and set up new ones for bills on the new account not to get chased for the regular bills

http://anna.blogs.iva.co.uk/

[freelili]

Hello Anna

I can empathise that you want to get this sorted as soon as poss but as Kerri says Do not stress there will be plenty of time to get a bank account sorted. There are many IP companies out there just phone a few to get an Idea of whats involved and see how you feel. Make sure you ask, how long it should take, are there any upfront fees and dont let them jiggle your figures around. Make sure all other options are discussed, DMP or Bankruptcy. I had a credit and debit card before, never used cash but all I could get was a cash card and I am fine with it, I ordered a pre pay maestro and mastercard and its fine. Getting an account is the most important thing at this stage, as soon as you do, youre off to that bank. I have internet banking which I agree is a life saver, I switched all my wages across using the internet. The way IVA's work is you must pay back as much as you can afford and should be given a realistic, no frills budget for 5 years, it is a formal insolvency procedue and your creditors will be wanting to see a commitment rather than an offer. I wish you the very best of luck.

LILY

I asked God for a solution and have to live with his reply.

[scaredkez]

anna if i were you try and open the basic account straight away, once that is done you will feel better, i had transferred all my DD in less than an hour by phone, i was given my account number on the day some do it for you i decided to do it myself, cancel the DD that you know you can't make the payment for if its the first time they will send you letters and you can just say it all crossed in the setting up of the new account, i know what you mean about asap, but honestly it took less than an hour to open the new account, as i said before dependant on when payroll phone the figures through to the bank for getting paid
doesn;t change until that day as they are asked if there is any changes or adjustments all you are is a number they give them your change of details then, i do payroll so know how this works with BACS so if you can change before then the better, you could also say to payroll could you have a cheque this month as you are opening up another account and have already closed the other one sorry for the inconvenience, inregards to the DD's you need to pay then i am sure if they are only a couple of days late they will understand if you say you were changing accounts, or leave in pay them then cancel and change for the following month, just don't pay the non priority ones, if you haven;t missed any payments so far you shouldn;t really have difficulty opening a new account i preferred the face to face approach as i knew by time i had left the bank that i had an account.
good luck
kerri

i know it is all very daunting but hang in there we are here to help and support through our own experiences

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[Anna]

Lilly - thanks for your post but new bank account IS very important to sort out as my next salary is due on the 26th of this month and I want it paid in an account that is separate from where my debts would be coming out from....

I have already applied to Co Op over the phone, will know the answer on Wednesday.

************
Kerri, as above, I hope the Co-Op will come back with "ok" to me on Wednesday, already applied, over the phone.

With my work schedule, I can not just take a half day off at short notice and cancell scheduled/booked classes (I work as IT Trainer). So had to do it over the phone.

The idea with a cheque is something I did not think about - will talk to my payroll tomorrow first thing in the morning - thanks a lot for that.

Thanks a lot for all this infor Kerri

http://anna.blogs.iva.co.uk/

[MelanieGiles]

Hi Anna

To answer your specific questions, it does look like an IVA could be a possible solution for you, but you should also consider the alternative merits of both bankruptcy proceedings or a DMP.

A contributions based IVA will have run over 5 years, so your suggestion of three is unlikely to be acceptable to creditors. If the sum of £400 per month is affordable, it will take you over eight years to repay your debts by way of a DMP - and possibly longer if the creditors continue to charge you interest.

So long as you are seen to be offering a settlement to your creditors, to the very best of your ability, then there is no reason why an IVA should not be accepted by the creditors.

Your new bank account should be set up as soon as you decide that you can no longer maintain your contractual repayments. The bank cannot use monies held in your daughter's account to set-off against your debts, and you are unkikely to be permitted an allowance to support your mother within the IVA. If this is a non-negotiable point, then I would think that a DMP is a better way forward for you, albeit a much longer repayment period.

Are you a property owner at all?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[scaredkez]

melanie can i just ask in regards to daughters account is that because she is sole account name as i was told to empty my 2 youngest accounts as they had my name on it, the bank have taken these accounts also only a couple of pounds in them.
thanks kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[Anna]

Melanie - thanks for stopping by....

No, I am not a homeowner, got no assets, no car etc and no savings.

I do not want to drag this over 8 years so only looking at IVA now with a small possibility of BR.

I have filled in a form on your website last night, it was not completely accurate though, have a better version now.

All I can realistically afford is 400 per month. Can push up to 500 per month but this is an absolute max.

http://anna.blogs.iva.co.uk/

[Anna]

Kerri - my daughter's account is in her sole name, she is 16...I guess yours are younger and their accounts are in your name for them so obviously the bank would consider that as "your" money.

http://anna.blogs.iva.co.uk/

[MelanieGiles]

Hi Anna

My colleague Tina will look at your income and expenditure and we will correspond with you directly over e-mail with regard to your options. As you have ruled out a DMP on the basis of unrealistic timescale, and are prepared to use bankruptcy as a last resort, an IVA may well be the best solution for you.

With regard to monies held in children's accounts, so long as these are held just in your daughter's name they cannot be touched. Unlike in your case, Kerri, where the account had your name included.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk