can I apply for IVA?

[kha]

I am 32 year old EU national male,living and working in Northern Ireland,working full time,paid by recruitment agency - earning 300 a week,i am in debt of around 25 000 pounds,unsecured loans and credit cards,i am not homeowner.
Now i got to situation i am late with payments.. getting deeper and deeper in problems.. my bank wrote me in letter if I cannot pay off 320 in 10 days they will deactivate my cash card..
Also have to pay 3x265 at once to abbey but i can't.
What should i do? can I apply for IVA?
Thanks a lot in advance because i start to feel a bit lost

[gimmewine]

Hiya, welcome to the forum. Can you give some more details such as who are your creditors, how much do you owe against each one and what is the sum you could afford to pay into an IVA each month?

[kha]

gimmewine - Thank you for welcome.

Here are some details:
1. I owe 15500 including payment protection insurance to Abbey - monthly pamyent of 265 I took 8000 on Unsecured Personal Loan ,have to repay 16100

2. I owe 1600 to my Ulster Bank -I took 3000 on Unsecured Personal Loan,monthly pament 162

3. I owe to Ulster Bank 1050 on Debit Card - limit is 1000
4. I owe 200 to Capital One on Credit Card limit is 200
5. I owe 6500 for car credit but I am the wehicle owner.
6. My car insurance was terminated as I wasn't able to keep enough money for monthly DD payment..

I earn cca 300/week /from 250 to 340/, I could afford to pay monthly at least 350 to IVA...

I am trying to get another personal loan to pay off outstanding 2x162 in 10 days and 3x265 till 1st of june..

[kha]

I fond on some website information that Northern Ireland residents can not apply for IVA. Is this information correct?

[aguise]

Hi kha
Beware of taking more loans as this will just get you further into debt and could make an iva difficult with such new credit. The main options are a debt management plan , iva or bankrupcy.
Others will be along to give more advice.

Ang

[aguise]

Just saw your last post not sure about that hopefully Melanie will be along soon to advise.

Ang

[kha]

Thank you aquise -

I agree with you that taking another loan will take even deeper in debts, I am thinking about to sell my car as soon as possible and pay off all my late payment and maybe would be better to pay off all outstanding credit to Ulster Bank..
Debt management plan is i think too hard,I'll loose my car and i won't be able to buy another and car is at the moment essential for me
Only thing i can do is refuse another credit and swap my car for cheaper one,am I right?
Or can I do anything else?

[tracy.h]

Hi have just checked online and it says that you can apply for an iva if you are working or living in northern ireland,so hopefully one of our experts will give you the advise you need.Also as Ang said do not take anymore credit it will not help if you cant maintain debt you already have then this will just add to it long term
Tracy

[tracy.h]

If you are living and working in NI are you a resident,as thats what it says you have to be to fit the criteria for an iva.

[kha]

Thank you so much, you are first people which i can ask about IVA and debt problems,I don't have any local friend here in NI who could explain me these things..
I don't take any other credit,i trust you know what you talk about.

Thanks for this forum

[MelanieGiles]

Hi kha - as I also have a practice in Northern Ireland, I feel able to answer this as one of the experts on the forum.

The IVA process is also available within Northern Ireland to anyone who has been in residence for six months or more. The legislation is similar to that of England and Wales, with some minor differences.

I think that the main problem with your case, is that you really only have two significant creditors - ie - Abbey and Ulster Bank, so a Debt Management Programme is probably more appropriate than an IVA. You could also consider declaring yourself bankruptm which will involve an application in the High Court of Justice in Northern Ireland, in Belfast.

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

[kha]

Hi Melanie.

You gave me a lot of useful informations,thanks.
I just would like to correct the detail that I have three creditors - Abbey,Ulster Bank and third is subject I got credit for a car but can't remember the name,i am searching my documents at the moment to find the Contract/Agreement.
Only thing why I am interested in IVA is that I need car,without car I am lost,even if I would have to drive the cheapest car it's essential for me at the moment.In case i would go for bankruptcy then i loose my car is this info correct?

-sorry for my bad English-

[scaredkez]

kha you donot always lose your car in Bankruptcy if you need it to travel to and from work and there is no great public transport links, it will also depend on the value of the car, they reckon about upto £2k and it should be ok, if the OR sells your car because its value is high but say you need a car for work they will give you a provision for one out of the sale.

in BR they may allow you to continue with the finance on the car also, BR is not as scary or as bad as you think if you have no assets to protect.
kerri

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

[MelanieGiles]

Nothing wrong with that English kha! Where are you from originally?

Was the car finance on a hire-purchase agreement or an unsecured loan? If the former, then you will need to continue making the payments, to avoid having the car taken away by the finance company. If it is subject to an unsecured loan, then title has already passed to you and you can include the loan into an IVA.

You will only lose your car in bankruptcy in Northern Ireland if it is valued at more than £3,500, and even then you will be given an allowance for a replacement vehicle to take you to and from work.

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

[kha]

thanks Melanie,i am not sure everyone can understand my English..
Originally from Slovakia or Slovak Republic to be correct:-) I came to NI 2-3 years ago to start new better life but i made stupid mistakes that i took loans,we had some plans with girlfriend /this is reason why i bought better car/ but girlfriend is gone and i have to pay off all the debts my own..

I can't find that bloody Agreement so I don't know the car is on hire purchase or on Unsecured Loan but going to find it right now.
My car worth about 5500 pound so i think i will try to sell it quickly and pay off late payments and maybe Ulster Bank Unsecured Loan,after this I should be able to keep up my payments and will not need neither IVA nor BR..

Will update this thread as soon as i can find that agreement