Hi all - I am so glad I have found this forum, for months I have felt alone in all the mess me & my partner have got into. Basically we have had a bit of a wake up call, been on a DMP for 18mths and calculated original debt to be 54000. We've now realised what with some creditors not stopping interest and adding the unsecured part of our mortgage we actually owe 91000! I just can't believe how its all got so out of control.
I have been lurking here and have got in touch with a couple of ip's and we think we know who we'd like to go with down the IVA route. The monthly payment would be 800 so does that mean that we will only pay the creditors 48000 back? I know that there will be an equity release at some point at the mo we only have about 8 -10,000. Do you think the creditors are likely to accept this as we would only be paying back just over half that we owe? I'm sorry to ramble on, we're just trying to get our heads round it all.
I think you are making the right move in trying to transfer to a IVA - that is what I did 9 months ago.
It is not unusual to only pay back half of what you owe. As you say, you will be expected to release some equity in the 4th year, and who knows what the housing market will be like by then.
Make sure that you have included all expenses in your I&E, it is amazing how many little things you forget! Make sure as well that you can manage to pay the £800 without struggling.
You can always give another IP a ring just to make sure. There are a few who post on here. Their details can be found under the experts link on the left hand side of the page. Five years is a long time to spend with a firm, so you make sure you are happy with them.
Good luck with your proposal and keep posting to let us know how you get on.
Last edited by kallis3 on Sat Jan 10, 2009 12:58 pm, edited 1 time in total.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I think you are doing the right thing about changing from a DMP to an IVA - there is less certainty within a DMP, and we are starting to see creditors going for charging orders more and more now where people are property owners - and of course an IVA would protect you against this and provide you with a firm repayment plan over a finite period.
I think you will be making a very good offer - if you can afford to pay £800 per month over a five year period, and I am sure that this will be acceptable to your creditors. Hopefully you have found an IP who you are happy to work with, and will represent your best interests when it comes to presenting this to creditors.
Hi from me too Hanna1. Visit www.iva.com and see reviews on IP's and select one you think you will be comfortable with. In fact ring one or two. At the level of contribution suggested an IVA looks appropriate. However your selected IP will after reviewing all the facts will give you the most appropriate solution to your financial problems. Let us know how you get on. Good luck.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Good luck with your swap to an IVA - it appears to be the right move for you - security of knowing no more interest and no charging orders to me is so important and at least whilst in an IVA you are safeguarded against these.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
We have recently had an IVA approved and our dividend was only 25p for each pound we pay. This means we will only pay back approx 25% of our debt.
Melanie Giles and her team did a really good job for us with very difficult circumstances.
Make sure you shop around and find an IP you feel you can trust.
Best of luck.
J
7 down 53 to go
The pedal uphill may be hard but remember once you reach the top you can take your feet off and freewheel all the way down!!!
