Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
How long have you been in a DMP, and have you ever tried for an IVA before?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
No I haven't tried for an IVA. I've been in a DMP for 14 months now and have about 20 years to go. The problem with an IVA is that Myself and my husband who the debts are for both of us, are both disabled an had to take early retirement from work so income is limited.
We both get a small occ pension, We both have IB and Pension Credit. We pay approx £275 into our DMP but owe £65000.
At this moment of time we have a small amount of equity in our home, although this is fast disappearing. We owe £122000 and had it valued the other day at £180000. Not too sure if an IVA would be possible.
Many people would view a 20 year DMP as unrealistic, and I certainly hope that all of your creditors have ceased to charge interest and collection charges on your outstanding accounts.
You say that you have approximately £58,000 equity in your property, with debts of £65,000, so I can see the benefits of a DMP over an IVA - where you would have to raise equity at the end of the arrangement, and bankruptcy - where the property would be taken and sold.
Given that I imagine it would be difficult for you to get another mortgage with the income mix that you have, there is probably no other viable alternative for you - but it might be worth running by an IFA to see if there are any ways of raising money against the equity to offer in full and final settlement of your liabilities.
Thanks Melanie. I will explore that avenue.
I don't get charged any interest etc. although Barclaycard have just started chargin interest on a card with £500 debt. The interest is 3 times the amount of the payment. I rang them today and was told to ring back on Wednesday to see what they could do.
I have another company that has passed their debt to their solicitor and are going to take out a ccj and Charging Order.This is in spite of me not missing a payment.
It is, of course the 20 year issue. The only thing is when it started it was 33 years. I have managed to beg and sell what I've got so reducing it by 13 years.
I told this solicitor that if they would leave me alone for 2 or 3 years I would be able to obtain the help from family members that have savings tied up to then offer a f&f. I would continue to pay until then .
Unfortunately they won't give me this break as they want the assurance of their money.
I said to him, who incidently was very nice about it, that I feel like giving up. It totally consumes my life.
I think like most people on here, when you have always paid your way then suddenly you can't, it puts you in a very dark place.
If you are prepared to sell the property and move into rented accomodation, and IVA could also work on the basis of offering equity on a full and final settlement basis.
When I hear people like yourself struggling to get a mortgage after an IVA it really makes me wonder if joining a IVA was the right thing to do it makes me feel like might as well of gone bankrupt!
It used to be relatively simple to get a mortgage once an IVA had concluded, Chris, but unfortunately sub-prime mortgages are very few and far between given the state of the mortgage marketplace at present.
The reason I never went bankrupt was because I wanted to get a mortgage after my IVA had finished the person on this thread is putting down a 48k deposit! and still cant get one I will never be able to manage more than 15% for a deposit. to be honest its left me deflated
I can understand exactly how you feel Chris. I think that we were all pretty shocked to see what happened in the financial markets over the last couple of years, and even with a government financial bale-out, banks still seem cautious to lend money again.
Are you struggling to meet the repayments? With only 28 months to go, if you were to go bankrupt, you could be faced with another 36 month repayment process under either an IPA or an IPO. And have faith - the mortgage industry may well have picked up by the time your IVA has concluded.
well have never missed a payment but the last 2 week of every month is a struggle beans on toast every day! and borrowing off my mum. I only pay 217 a month so it cant go down much. but I believe with bankruptcy you dont pay as much as you would in a iva
With bankrutpcy, if you have over £100 disposable income each month, you will pay about 70% of this across for three years, and of course it can go up if your income goes up.
ladyc, there are a lot of posters on here who have gone into rented accommodation - I am sure one of them will pick up on this and tell you of their experiences.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
