Confused, stressed and unsure....after contacting CCCS they advised that the best solution for my husband an I was an IVA and put me in contact with Grant Thornton, who so far have been very helpful. Our proposal has been drafted and I have been told that it is now with management for approval...However I still don't know if this is the right route a good route; are we setting ourselves up for a fall in the future.....???My husband is self employed and some of the IVA debt will be to HMRC; he is happy for me to just deal with it all; we have a 14month old boy and I am a secondary school teacher working part time, and I am finding this all very stressful and because of this wonder if I am making the right decisions for us both??? Help! We are fixed at 6.25% on our mortgage with C&G which finishes NOV 2013 (five year term) and we pay £900!!!! for a very small two up two down, at the end of the term we will automatically go onto the SVR which at the moment is 2.5% but who knows this time next year....? My worry is that if we enter into an IVA (it may not even be accepted??) and we need a new mortgage rate we will be crucified with the rate, also C&G probably wont let us being that we will be in an IVA...? Then could we loose our house and therefore should we think abouyt Bankruptcy instead??? Also our biggest debt is with Lloyds; a unsecured loan of 14k which was originally 25k; 3 years ago, we have managed to always pay this on time (apart from a payment holiday last year) and also paid our mortgage on time which is C&G/LLoyds too; our bank accounts are also with LLOyds at the moment so they have access to all our spending; and we have spent money on things other than essentials which they decide as a reason to not agree to the IVA....? therfore we will be in a worse place if we are not accepted as we will have missed payments...So confused, just want some clarification.... I would really welcome some advice. Thanks Lisa x
creditors dont look closely at what you have spent on to decide if they will approve an IVA or not so dont worry about that.
Remortgaging during the IVA or indeed while its on your credit file will be very difficult so you may be stuck on the SVR. Is there equity in the property and are you happy with how it will be dealt with? Your mortgage with C&G is for the life of the mortgage so they cant suddenly take the mortgage away(but they can adjust rates within whats allowed by the mortgage contract you have).
Lloyds were our biggest creditor and were no problem to deal with.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Welcome Lisa. Most of my debts were with Lloyds ie. Mortgage (C & G), credit card x 2, overdraft £10k etc. They did accept our proposal. Lloyds business is usually dealt with by the Insolvency exchange (TIX) so I do not think you would have a problem there. Grant Thornton would not put forward a proposal if they thought your creditor's would not accept it. This is a very stressful time and I understand your concerns. Why don't you make a list of all your worries and talk them over with your IP. Also, did you speak to any other IVA firms as it is a good idea to consider other opinions and 5/6 years is a long time so you need to be 100% happy with the persons you are dealing with x
An IVA may be your best option and you are with an excellent firm. The change in mortgage rates will be addressed at the time but there is no reason Lloyds will not give you a new deal which would provide stability until the IVA has completed.
Hi Lisa, i am new to this forum but i am nearly 3.5 years into my IVA, although i am not keen on my company (they are not very helpful and have no bedside manner when i am feeling worried)the IVA itself (aslong as we complete it) is the best decision we ever made. Our debts were just getting out of control, we were using credit to pay loans and credit cards rather than missing payments, there was just no end in sight which with an IVA there is. We didnt want to go Bankrupt as our families have no idea and telling them was just not an option and we didnt want to lose our house so the IVA was the only way!! Our payments have never gone up and it has been relatively straight forward. My advice would be to get accepted first, worry about the future when it happens and im sure your IP will help you through any changes in mortgage payments e.t.c. This is why the IVA amount is reviewed throughout. Good luck
Lisa - as you are not yet in an IVA - why not ring LLoyds direct and asked them to refix ASAP - no need to mention an IVA (as it has not been agreed)
Also consider moving you bank account - at the moment you may be able to access a full account.
Also Lisa(sorry!! ) discuss all your options with a few more companies - look at reviews and comment on here - then decide on your company
Last edited by ginger3232 on Thu Apr 26, 2012 5:20 pm, edited 1 time in total.
I cannot help byt observe that you appear to be confused about the choice of options, which is making you wonder if you are doing the right thing. I think that both you and your husband would benefit greatly from a personal consultation with the IP firm acting for you, as often you need more time to be able to make up your minds properly. Time spent now in giving further consideration to your circumstances, will be a great investment in the long run.
Thank you guys, the above is helpful. I have rung C&G this week to complain about the fact we fixed before the crash and have been crucified by the high payments and have asked them to look into the fact that I believe we were mis-advised, especially as we were coming from a Northern Rock Together Mortgage which proved the start of our severe financial worries....we were in fact out of the term with NR so were paying the SVR. I have asked that the interest rate is looked at as to re-fix would cost us over 4k penalty, which we cant contemplate! If only life was easy. I have already written a long list of questions that I have discussed over the phone with the GT advisor, and she was most helpful, however there is still doubt in my mind, they were not able to fully answer the Mortgages queries and I think personally becasue all the discussions take place over the phone and not face to face there is an element of it not being formal enough, for me anyway....It is good to hear those of you with the majority of debt being with Lloyds and you were still accepted into an IVA. Is Bankruptcy a quicker option though, do companies view bankruptcy so similarly to an IVA that maybe its best just to bite the bullet; not happy about that senario, but its playing on my mind as a feasible option.... lisa x
Bankruptcy may be the better option but difficult to say without the full facts. The fact that your mortgage should reduce in Nov 2013 which would be after normal discharge time means you should benefit from the savings whereas your creditors would get at least some in an IVA.
Not at all. The property belongs to the mortgage comapny and the equity is the only thing at risk. If there is no equity there is no point in pursuing the property.
Melanie Giles; I would welcome the opportunity to speak with you or one of your colleagues at your earliest convenience as I believe that I should as advised get secondary advice to qualify my decision.
Thank you
Lisa
Thank you Michael; I thought that there was then 3 years for the receiver to apply for possible equity and if over a £1000 which we probably would have they could request this unless it was owned by a seperate benefactor??? Confused still. However my husband is self employed so maybe not the best route....
Hi Bailo - if you would like to visit Melanie's website at the link below you can provide us with your contact details for a chat.
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The official receiver can come back and revalue the property in the third year after the bankruptcy and make a claim against any equity if the issue has not been resolved at the outset.
Bankruptcy may not affect your husband's business but without the full facts I could not give a proper answer.
) discuss all your options with a few more companies - look at reviews and comment on here - then decide on your company
