charging order on the property

[sonyse2t5]

Hello,
I am on DMP at the moment with CCCS for a breather and looking at IVA with a company. I aways believe that creditors will look for ways to get their dosh back ASAP. I have no assets so they can't do charging orders or nothing. 98% of my creditors did formally agreed to the CCCS payment plan as I gave them half of what they asked for every month.Now 98% get no interest.I think If you offer them less than half of your normal payment and they could refuse it and become impatient and I guess this is where your problem with DMP is - if they reject your payment they will look at other Asset options as in your case.

Oh I forgot, they often stop hounding you if they accept your payment, till they review your payments...so DMP can work but depends whether they accept it.

Your dmp would take 14 years so I think it is not right you are doing DMP. I am not surprise your are been hounded by lenders.

If your IVA fails you can still rely on DMP.That's what I think any way.

[mondaynight]

Hi ALL - THANKS FOR THE COMMENTS I have about 22k equity in the house and an endownment policy that I have been told I will have to surrender as part of an IVA - I cannot look at bankruptcy as an option as I will loose my job. I have just been overwlemed by everything I have read and am afraid I am not taking the right course of action. I cannot beleive the support I have had from everyone in the last 24 hours. the company I have contacted is Debt Free Direct thanks everyone

[hara]

Dear Mondaynight,
I can not believe that you were adviced DMP at the out set with such a hefty payment per month.

As though I do not know the full details I feel an IVA should have been adviced.

Did you seek advice from any one else before deciding cccs and did you ask about IVA with them?

I was also given their tel no by some one, but I shopped around and went to local CAB and was reffered to a reputable firm of insolvency practitioner.

Did cccs say why a DMP was better than IVA.

hara

[iva.com]

Hello Mondaynight and sonyse2t5,

I'm sorry to hear that you may have been given bad advice. If you are looking for an IP we have a list of IVA firms and IPs at IVA.com. To help you to assess these we have reviews posted by their clients outlining their experiences (good and bad).

We recommend that you look at a number of IVA firms before choosing which is right for you.

Good luck and please let us know how you get on.

Kind regards,
Terry Balfour
IVA.com

IVA.com - Comparing IVA firms by using consumer feedback.

Please rate your IVA firm or Insolvency Practitioner by reviewing them here: http://www.iva.com/submit_iva_review.asp

[mondaynight]

Hi Hara and IVA.COM - I was advised that the DMP would be the best policy and would avoid me having to surrender my endownment and any other assessts but to be honest it has just been a living nightmare we entered in to the DMP in 2004 have subsequently has 1 charging order placed on the property another in the pipline and numerous creditors calling to say when are you going to increase payments. I spend up to 40 mins a time on the phone only to be told they will forward another budget sheet. after the last creditor thretend yet another charging order I turned to the internet to look at the possibility of IVAs. I chose Debt Free Direct but have not committed to anything yet I will take your advice and look around.

[MelanieGiles]

This highlights the pitfalls of Debt Mangement Plans over the security of an IVA. With endowment policies no longer able to produce the returns they were set up to do, and comparing interest rates you are paying to creditors, against the lower gain on endowment policies, I would personally not have suggested a DMP to you.

Choose an IP who will take time to understand your individual case and needs, and shop around if you do not feel that you are getting the right advice. Also read my blog on choosing an advisor.

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

[mondaynight]

Hi Melanie - I have just read your blogs and was particularly interested in the expenditure what is allowable. Under my currently DMP I has a review in May this year and was told that the £350 per month that I have been allowed for food and clothing for myself/spouse and student son was no longer acceptable I have to reduce that amount to £290 not a lot you may say but its amazing how difficult this last 2 months have been with that reduction. Reading on through the blog I then started to worry about the prospect of going through the IVA route if I am unable tog gain the acceptance of my creditors with an IVA because my job is really at risk if I decalre bankruptcy

[MelanieGiles]

Well I wouldn't be putting it forward with that level of expenditure - £290 is ridiculous for three adults. I would have thought £350 to £400 is far more likely - but at the end of the day you should put down what you actually spend and not what someone says you should. Creditors are the ultimate judges at the end of the day.

If you choose an IP with a good reputation with creditors, and put an honest statement of fact in front of them, in my expreience your IVA will succeed. Those which do not succeed tend to be those where the IP has little or no contact directly with the client, where the IP is dictating what can and can't be spent, or where clients have clearly not been advised as to all of the options available to you.

Tread carefully! An IVA is a big commitment to make, but if prepared and proposed correctly, can be life chaning and absolutely worthwhile.

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

[hara]

Dear mondayight,
My heart aches to know that you have paid a huge monthly contributions and still have to deal with the creditors phone calls it must be heart aching and very worrying.

for all the contributions you have not got much to show.

Did any of the creditors freeze interest and did any one agrre to accept a reduced total amount.

I suggest you look for a reputable IP.

Local CAB may recommend one.

hara

[mondaynight]

Hi All - that is the fact I had to drop food allowance as the advisor at cccs told me that that is the amount allowable for 3 adults. What I actually spend is more in the region of £350- however this month has been different. I have been used to tight budgets now for the last 2/3 years on the DMP but this was just another smack in the teeth.

I called DFD the week before last and have sent my details through to them I am waiting for them to come up with a proposal based on the information I have given them I have also been made aware that I will have to sell my endownment policy and thats ok as long as I can find something to cover my spouse and I if either of us die or even to pay off the mortgage if we survive.

I guess that has always been the thing that has bothered me is finding a company who wont take me for a ride and has the interests of both myself and the creditor at the forefront of their mind.

When ireceive the phone calls from creditors I understand they have a job to do in reclaiming as much as they can but the level of pressure some of them put you under is ridiculous I often recieve letters through the post saying "We have found a way to help" but when you get down to it its all about taking out other loans to clear off their debt - talk about irresponsibility on their part their should be a law against it!!!!