Advice

[Chris.z]

Hi I posted on here about a week ago reagrding a failing IVA that was with Debtmatters, They were pretty reluctant to offera variation as the payment I was making was dropping from 350.00 per month to 220.00 a month. However, I contacted a second company CHURCHWOOD who said that they were willing to take on my IVA. I spoke with them twice and they said they were 100% confident of success. They also said that they wanted me to pay my first 220.00 by 1st June 2007, I was sceptical of this and oher people warned me off this path. I just wanted some general advice then really and sorry for rambling! As I said my IVA is failing I was hasty in setting it up was very naive about it and debtmatters really just pushed me into it. There was no face to face contact.. The paperwork was innacuarate, it said I had 2 cars and I didn't!! My income and outcome was very innacurate, hence I am failing. My debts totalled 25,000 approx a year ago and my current offer is 220.00 per month, I just wanted to know is this a realistic sum or am I wasting my time?? Churchwood Are now pursuing me all the time and Debtmatters aren't even bothering to call me when they say they are... They said they would call me Friday and I still haven't heard from them??

Sorry again for rambling!

Chris

[aguise]

Hi Chris I vaguely remember you previous post. As said before you cant start another iva when you are in one, it would have to fail and then be reproposed so dont pay any money to churchwood. If you phone debtmatters and they say they will ring back give them a chance and if they dont ring keep ringing them until they do. I'm not that good with the figures I am sure melanie or someone will be along to help but if your income and expenditure is unfair then they should seek a variation meeting for you or at least say why they cant.
Keep posting things like this help others as well as yourself.
Hope I helped a bit

Ang

[tracy.h]

Hi Chris if your iva wasnt excepted then you are back to where you started,but beware of a company that want money upfront as if your iva has not been successfull then there is obviously a reason for this if you could post your details income expenditure mortgage if you have one any equity in the property and who your creditors are then one of the experts willbe able to give you further advise but i would not part with any money,get advise if your former company will not disclose the reason your iva failed then i'd continue to call until you get some kind of explanation so that you can move on.
If your iva was not viable then im sure once you have posted details Melanie will be able to advise and hopefully explain why it wasnt excepted
Goodluck

Tracy

[aguise]

Hi Tracey
I think after reading chris's previous post that he is still in the iva but that it is in arrears, as yet it has not failed. That is why chris you should not pay anything to another company as you cannot change to another company mid iva. Churchwood should know this and should not be asking for any money.

Ang

[MelanieGiles]

Hi Chris

You have to sort matters out with Debtmatters first, so tell Churchwood that you are not in a position to proceed with them and that you will call them if you need to.

Can I suggest that you try to call your IP directly to discuss your concerns.

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

[tracy.h]

Thanks Ang didnt remember last thread

Tracy

[Chris.z]

s

[Chris.z]

I recieved a letter from Debtmatters this morning saying that after consulting my main creditors that they are unwilling to accept a variation of my IVA. I owe 26,000 approx and have no assets and live in rented accomadation.. My car is a lease car through work as I am a community nurse. At present my IVA which is in arrears is 350.00 per month and this equates according to my paperwork 45p in the pound. I was offering and could afford 220.00 per month. Debtmatters say 220.00 equates to 17p in the pound. Now I am bit unsure about this - 220.00 equates to 62.85% of 350.00. Now 62.65% of 45p is just over 28p and not 17p. Debtmatters were also talking of adding 24 mths.I would of thought that 28p in the pound was better than the prospect of me going bankrupt... Which if possible I would like to avoid.

As I mentioned in a previous thread Churchwood were convinced they could get it through the IVA process once my original IVA has failed. It was just that the original IVA was et up hastily and shoddily if I ma honest, I was just quite naive then. Please help as this is really stressing me now. Am I right with my sums and what are my options???


Chris

[MelanieGiles]

Hi again Chris

I do not think that you have taken the IP costs into your calculations, as these will absorb some of the money you are paying over.

In my professional opinion, and other experts may well have a differing view, a second IVA only offering 17p in the £, where your creditors have already stated that they will not accept this from your existing IP will probably fail.

However, if your first IVA is brought to a conclusion, and this new firm are happy to give it ago free of charge, I suppose you have nothing to lose. Your other options are to set up a Debt Management Programme or declare yourself bankrupt.

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

[Chris.z]

Hi Melanie and thankyou for your quick reply. The thing I was confused with is that when I was paying 45p in the pound it cost me 350.00 a month and Debtmatters were getting their fee. I then reduce my contributions by 37% to 220.00 but in bebtmatters eyes this reduces my dividend by a massive 65% to 17p. This just doesn't seem to make sense, or maybe I just have the wrong end of the stick????

Regards

Chris

[Storm]

The IP fees don't reduce proportionately ....... so you will still be paying the bulk of the IP fees no matter what your payment is.

[Adam Davies]

Hi
Quote "They also said that they wanted me to pay my first 220.00 by 1st June 2007"
The fact that Churchwood want you to contribute now is the reason that you should be very careful.Even if your current IVA is failed it will take probably months to get another one to the point of a creditors meeting and if this is rejected you will be out of pocket as any money paid will almost certainly go towards fees.
If they ask for no payments until it,s accepted then fair enough but this is not the case.

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[Chris.z]

Thanks Andy, Just seems really unfair as I say that by only reducing my payments by around 37% that my dividend in the pond actually reduces by over 60%. I have written to both Debtmatters and Churchwood explaining my Fears. One final point , if my IVA fails would anyone be able to reccommend an IVA company that might be prepared to re-present my IVA at the reduced payment of 220.00. I really want to make some effort to pay my debts off and avoid bankruptcy.

Thanks Again

Chris

[Adam Davies]

Hi
Well on a debt of 26k payments of £220 per month will generate an income of £13200,take off IP fees of 8k[approx] and you will have only £5200 to go to creditors[20p dividend].This is not enough as it is costing the creditors 8k to generate a 5k payout.
You may be better to enter a debt management plan and then look into a SIVA[simple IVA]when they launch next year,the fees will be alot less and could make your proposal of £220 a month attractive.
Melanie has recommended Brightoak who specialise in this type of work[debt management plans] Call 0800 0437 222 and ask to speak to either Andrew or Catherine.
However bankruptcy may well be the best option for you.
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[Chris.z]

Thanks Andy could you or someone else explain SIVA's to me. And was I right in thinking that if I were in a debt management plan for a year I could then go for a SIVA? And in A DMP would 220.00 be enough??

Chris