confused

[Abby]

hi
just sent off all paper work to apply for an iva,got advice from various sources, 2 said iva would be ideal but 1 company said we couldnt have an iva. confused

[MelanieGiles]

Hi Abby and welcome to the forum

Have you fully explored all of the options available to you and decided that an IVA is the right way forward for you - and can you afford to make the payments? Why does the one company say that an IVA would not be accepted? I would be interested to know which firms you have approached to ensure that they are firms that provide rounded advice and not just on one solution.

[Abby]

hi
first we rang gregory pennington who said a dmp was the way forward and said we would have to pay £1,400 a month leaving us less than £300 to live on, then contacted debt free direct and baines and ernst who both suggested iva and approx the same figure. I informed gregory pennington we were going to go for the iva and they said we did not stand a chance.

[Viki.W]

That's a bit harsh. Welcome to the forum Abby. Why don't you give Melanie Giles a call, doesn't hurt to get another opinion and her and her team are fab. X

[MelanieGiles]

Interesting advice!!! How much do you owe to credtors and how much do you feel you can afford to pay on a monthly basis? And are you a property owner?

[Abby]

That's a bit harsh. Welcome to the forum Abby. Why don't you give Melanie Giles a call, doesn't hurt to get another opinion and her and her team are fab. X

[Abby]

hi viki

i will give melanie a call, its a very scarey place to be in this.

[Abby]

[quote]Originally posted by MelanieGiles

Interesting advice!!! How much do you owe to credtors and how much do you feel you can afford to pay on a monthly basis? And are you a property owner?
[
/quote]
yes we own a property, owe £82,000 and could pay about £850 a month after all the bills

[Abby]

yes we own a propertym owe £82,000 and could pay £850 a month after the bills

[MelanieGiles]

How much equity is there in the property Abby?

[Abby]

hi melanie
we have about £42,000 equity

[MelanieGiles]

Are you both in debt or just yourself? If you have equity of £42k in the property, and an ability to pay contributions of £850 for five years, this would result in a total asset pot of £93,000 against debts of £82,000. So I suspect this is where the advice that an IVA would not be suitable is coming from - albeit that does rather assume that you will sell your property.

An IVA would be based upon affordable monthly payments of £850 per month, together with the release of equity based upon 85% loan to value borrowings during the final year of the arrangement. It might work, but I have insufficient information available here to really comment further. If you have found an IP prepared to put IVA proposals forward, and this is at no cost to you, why not give it a go - as you have nothing to lose and if it is rejected you can then offer a DMP.

[Abby]

melanie

most of the debt is joint names, i am going to visit your site and send you all the info you need to see if you could help any further, the last thing we want to do is have to sell our home.
i have opened a basic account with the allience and leicester is that the right thing to do

[MelanieGiles]

We will certainly try and help Abby - and there may be a way to ringfence your property away from creditors. Do make sure that you are working on the basis of a realistic valuation - as property values are tumbling on a national basis at the moment.

[Abby]

melanie
i have filled an iva form on your site, some figures are approx as i have sent paperwork off but i will get exact figures.thanks for all your advice its really helpful.