feel reponsible for the debt

[sp_a]

I am thinking about having to take an IVA however feel reponsible for the debt as I made it, is there an option where I could arrange a payment plan with my creditors?
Has this happened to anyone in the past? I work in financial services (only recently) and don't want to endanger my career by my past actions?

[kezza]

Hi sp a

That would depend on the level of debt you have, how many creditors and whether it is a temporary gliche or an ongoing problem, post more details so an expert can advise properly

[sp_a]

I have approx 50k debt with 6 creditors, at present my debt repayment take up 66% of my salary with the other 33% going on rent. I have literally 2 months of credit available to me till I can now longer afford my travel to work. I am worried that approaching my boss to ask if an IVA will affect my position ( I am a bank manager) and that they will just sack me on the spot. I have only recently taken a job with a financial institution and it makes me regret every day the way I have handled my finances in the past.

[MelanieGiles]

Hi spa and welcome to the forum

Given the level of your debt, a Debt Management Programme is likely to take several years to repay in full, and creditors will likely continue to charge you interest in the meantime.

You will need to take a view on whether this is a more sensible option than an IVA which runs for a finate period. I have acted for senior bank officials presenting IVAs several times in the past, but you will need to check your own contract of employment to see whether this is an option for you.

Good luck!

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

[sp_a]

Thanks Melanie,

I feel that i should repay the debt myself but am fast getting into a position that that is not possible - is an IVA in yur opinion the more sensible option? Will my bank accounts be frozen? and what happens if all my creditors to not agree?

If I start the action soon how long does it take?

[freelili]

Hi

I just wanted to say please dont beat yourself up anymore, we all make mistakes, I did and am in debt, I felt really guilty at first but we are all in the same boat here and whats done is done. In an IVA your bank accounts are not frozen. You could try phoning a few companies (start with the ones on this site, if your contract of employment allows) You will get a feel for what it involves and it may help to take the feeling of panic away, its also a way forward and a goal to aim for. It takes around 8 weeks for the process. I hope you feel better soon, its a dark place to be, I know, but there will be a light soon for you.

Good luck

LILY

I asked God for a solution and have to live with his reply.

[sp_a]

Thanks,

It does help to know things, at the moment having looked at my contract there is no information about IVA on there so I now have to make the hard choic of talking to my boss or not - really don't know what to do about that!

[MelanieGiles]

Hi again

It is difficult for me to advise specifically on the forum, and IP's will rarely recommend a course of action to you - our role is to ensure that you are fully appraised of all options, the implications and advantages and disadvantages of all procedures in order that you can make a choice as to what is the best option for you.

Your debts are quite high, and my concern about managing things yourself is that you may not repay the debts at the rate that ongoing interest is being charged. If you were to enter into an IVA, your bank account will only be frozed if it is held with a bank to whom you owe money. Also, with an IVA you only need to get a majority acceptance of 75%, interest formally ceases and no legal actions can be commenced or continued. Whereas with a debt management programme you need to all get all creditors agreeing, and you have no protection from them changing their minds in future or commencing legal action against you

Incidentally, do you owe any money to your employer? I suspect not if you have only just started working at that bank.

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

[sp_a]

Thanks Melanie,

I owe no money to my employer, only hold a bank account with them that is properly managed, at the moment all my finances are managed and not in any arrears, this is going to change very soon though.
I have read things about creditors changing their terms to include a no IVA clause in them, if this is true of some of my creditors I have no hope do I?

I would easily be able to pay up to £600 a month off my debt, is this a reasonable expectation?

[MelanieGiles]

Your £600 is ample to fund either a debt management programme or IVA - so more thought should now be given to the right way forward for you. As you do not owe your bank any money, your current account is safe under either option.

I have not heard anything about "No IVA" clauses, and would be interested to learn more about this if you have any information. Even if this comes in the future, it will not affect your position now.

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

[sp_a]

From 1 May 2007 this will read:

19.2 As long as we have sent you the correct notice as required under the Consumer Credit Act 1974, we can ask you to pay the full amount which you owe us under this Agreement if you:
seriously or repeatedly fail to comply with your obligations under this Agreement;
die; or
become bankrupt, are sequestrated, or if a proposal is made for a voluntary or other arrangement with all or any of your creditors.

I got the above paragraph from the egg website, does it mean that if I even try to go for an IVA they will want payment immedietly?

[MelanieGiles]

This provision relates to what they can do after an IVA is in place, which of course is an agreement to pay less (usually) that the full debt, so I cannot see it has any affect or stops creditors from taking commercial decisions to accept offers of settlement.

Storm, a regular poster, is in the credit industry and may have a differing view. Storm - are you out there tonight?

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

[sp_a]

Thanks,

I think I'm going to wait to see if this means they will ask for all their money back immedietly as I cannot afford to pay that back which will put me in more trouble than I am in now!!