HFC!!!

[snowy]

Hi

I was just wondering if anybody had any views? my IVA was turned down due to no vote from HFC, everyone else voted for it but because they are my main credit it meant it was refused.

I could only afford at the time to offer 30p to the pound which I believe from what I have read may be the reason, although my IP said they didnlt even ask if I could afford to pay any more - they just said outright no - they were intending to go for a charging order on the little equity I have.

I am wondering if anybody else has been refused by HFC first time round but then on re-applying they changed their vote to yes (wishful thinking for me I know).

My thinking is that if I can over the next few months manage to get into a position where I coulf offer 40p to the pounds is it even worth trying again and if so how soon could I think about re-starting the process

Any thoughts or comments from anyone would be appreciated.

Thanx

[emma_t]

Hi snowy

That's really sad news.

Although I am not an expert, so can't advise as such.
Did your IP not have any possible solutions - maybe you could extend the term of the arrangement to achieve a higher dividend?
I think you need to take the advice of your IP now as to what to do as they will know all the ins and outs of your situation.
Good luck
Emma x

[wen]

I think 40p would be successful, as HFC Bank are part of the HSBC Group which means you have to hurdle that 40p!

But I would wait to hear from Melanie and the other experts.

[snowy]

Hi

Thanks for your replies, to be honest whilst my IP was very sympathetic with my situation all he kept saying to me was that he couldn't tell me what to do and the next step was up to me, I understood this already and wouldn't ever let anyone tell me what I should be doing as that decision is mine, he just said I would to stick to DMP and then try re-applying if I wanted to, but going from what he said HFC weren't even interested in negotiating with me they just said out right no, so I want to try and get an idea as don't want to go through all the emotions of another application to be rejection and feeling right back at square one !

[Martin2011]

Hi Snowy,

That's a real pain.... I'm sure it would be worth trying again with the offer of a higher %£, but you do need to be certain you can afford to pay what you're offering. As Emma mentioned, another alternative is to extend the term of the IVA to increase total payment without exceeding affordability, but you really need advice from a qualified IP on your situation, and to be honest it doesn't sound like yours is being too helpful. I'm sure Melanie, or Andy (if he's recovered from his TV appearance this morning) will be along to give some more concrete thoughts before too long.

Very best wishes in finding a way forward,

Martin

[snowy]

hi

does anyone know if its possible to stop charging order and can they only secure equity in propitey,say 10k or charge full debt on it 20k

thanks for your help,its much appreciated

snowy

[carlmcmullen]

Hi Snowy,

Sorry to hear your IVA was rejected.

HFC are an unusual creditor and when i have spoken with them about rejections they usually give the reason that they rejected due to the account being less than 12 months old or a very poor payment history, i have never actually come across them rejecting becuase of a minimum dividend.

Have HFC now made a charge against your property as if they have then i would sugges that you put the IVA forward a second time (assuming it is still the sensible option for you) as the HFC debt will now be a secured creditor and have no voting rights, although they may exepect a payment outside the arrangment which you would need to discuss with them prior to putting forward a second IVA proposal.

If they havent charged the debt then you need to go to your IP and see if you can get more information as to why they rejected the VA so you can then work out if there is a way to overcome the objection, you have a right to know.

How much debt do you have in total and what was your proposed IVA payments - as a DMP maybe a second option.

Carl

[carlmcmullen]

They would noramlly charge the full debt.

There in only two ways normally to stop a charging order and that is to get an interim order but then you have to enter into an accepted IVA, if HFC have rejceted once then they are likely to reject again so i is unlilkey an interim order will help.

Or pay the debt in full !

So i would suggest that the charging order will become final i am afraid.

[snowy]

Hi Carl

I was in a DMP with my husband for the last 12 months, I was working two jobs starting at 9am and finishing at 10:00pm, my diabetes control has been suffering badly because of this so had to give up the second job on my doctor's advice, it wa at this point that we decided to apply for an IVA, husband was approved and he has accepted it. Full debt was £31k £20k of which is owed to HFC on three separate credit cards. They haven't got a charging order yet, they apparently told my IP that this was their intention and were not open to discussions as to any other kind of agreement. Proposed payments was £160 per month, HFC already have 2 CCJs against me which is why I am so desparately worried as to how qickly things could now move with court action etc against me!

[carlmcmullen]

So your husband is in an IVA and you still have £31k of which £20k is HFC.

How much was you proposing to pay into your IVA?

[snowy]

Instalments of £150 over 5 years and then equity release of £7,800 during the 4/5 year, worked out at 30p to the pound.

Yes he had debts of £40+ but is now in an IVA, so he has had to sign the TX form stating that he will not sell the house so the equity will be available at the conclusion.

[carlmcmullen]

Have you taken any advise from a second IP?

[snowy]

No wouldn't know where to go, and am afraid that if HFC are digging their heels in as they seem to be doing then whatever I do it is going to fail in any event

[carlmcmullen]

It is always worth having a chat to either your or IP or a second IP for a second opinion.

I am sure Melanie will be along shortly to offer further advise.

[snowy]

Thank you