Going for an IVA at last

[kallis3]

Me and my other half finally admitted what we should have done years ago - we cannot cope with the debt we have. Having been in a paid DMP for 18 months, we contacted Payplan and they said we were probably eligible for an IVA and we have our creditors meeting set up for the 21st.
I have just ready one of the previous topics about HSBC and the 40p in the pound. I am offering 31p in the pound and my husband 38p. We had a joint loan with HSBC and I had a credit card with them as well. Both these loans are now with Robinson Way. Will that make a difference to the amount they are likely to accept?

[MelanieGiles]

If Payplan are presenting you as individual arrangements rather than joint and interlocking, the joint creditor will get a distribution from each estate which ought to be in excess of 40p.

If they are not, then you do not meet IVA criteria for HSBC - but they have been known to accept lower dividends on an individual case basis. And this will only affect you if HSBC are more than 25% of your overall creditors in any case.

Do let us know the outcome of your meeting, as I am monitoring the actions of HSBC on lower dividend cases with some interest at the moment.

[kallis3]

Hi Melanie,

Thanks for that. My husband has pointed out to me since I posted that our joint loans will be in excess of 40p, so hopefully they will accept. Payplan have said that we may have to have some modifications. Hopefully they won't include our car as it is a fairly recent model (albeit only a Skoda!)and I do need a very reliable car for my job. I think the problems may lie with my single debts as there are quite a few of them. Total debt for the two of us is just over £80,000.

[Adam Davies]

Hi
It is unusual in an IVA for you to have to sell your car,unless it is expensive and surplus to requirement.
Good luck for the 21st
As a matter of interest how much were you jointly paying in your DMP and how much are you paying each in the IVA ?
Regards

[kallis3]

Hi Andy,

Payplan had told us that we might have to sell this car and buy an older and cheaper one. This car is a 55 reg and worth about 8 grand. It is the only one we have.

As regards the DMP, we were paying £648 per month. The payment was to Hamilton Locke, and whilst we had no problems with their management, they were charging us over £100 per month for the privilege. The IVA will be £615 and this includes two credit cards that were not in the original agreement.

[Adam Davies]

Hi
Sounds a good move for you.
Melanie will give you a better idea about the car but it is unusual for family cars to be sold[unlike in bankruptcy]
Regards

[MelanieGiles]

It is very rare for cars of this value to be expected to be sold - after all the IVA lasts for five years and so the car has to as well.

[kallis3]

Thanks Melanie, that puts my mind at rest. I was just concerned as Payplan said that the creditors might make that one of my condtions.

[Adam Davies]

Hi
In the unlikely event that they do,challenge it.
Where are you getting the valuation of your car from ?
Regards

[kallis3]

Hi Andy,

My other half tells me that Payplan came up with that figure. Whether they have a car price guide I don't know. They have a copy of the registration document. It cost us £14000 new and it is
2 1/2 years old. I would think £8000 is probably about right.

[MelanieGiles]

Try Parkers on-line or Glass's Guide for a more accurate prediction of its value.

[Adam Davies]

Hi
You need to get a trade figure for it and I think that you will be surprised at how much the car has depreciated.
Make sure that your IP puts he correct trade figure in your proposal
Regards

[kallis3]

Hi,

According to Parkers online, the price ranges from £7,100 part ex to £8950. I presume that is for a bog standard car. Ours has satnav, climate control and CD autochanger. Don't know what difference that makes as I have to pay for anymore info from Parkers! Glass's won't even let me get that far without paying for the info.

[MelanieGiles]

So £8,000 is probably about right then?

[kallis3]

Hi Melanie,

It would appear so. I hope the creditors don't say that it is worth too much. As I have said before, I need a very reliable car (and this is one) for my job as I sometimes have to travel places at a moments notice, plus I work shifts and so cannot always rely on public transport. Also, but I don't suppose the creditors care, I have elderly parents who rely on me sometimes for hospital visits (father has recently had double pneumonia). Sorry if it seems that I am feeling sorry for myself, but it just seems that everything bad seems to come at once!