I am in some financial mess

[Chris.z]

Hi I am in some financial mess - I took out an IVA with a large company who regularly advertise on TV. At the time I expressed concerns that I thought it was too high but was just so relieved that I agreed. I am the first to admit that my payment history has been nothing short of terrible, but since the IVA 's inception I have split with my partner, had major health problems and have been gambling for which I am now recieving help. I have debts of 26,000 approx and my IVA was set at 350. I am currently in arrears with the IVA. I contacted them to ask for a payment holiday whilst I got myself sorted and said that I could afford to pay 220.00 a month and they seem pretty negative about this. On the off chance I rang another companyy who very simply agreed to take this on and I am awaiting paperwork from them. They said they were happy with 220.00 a month for 60 months. I just wanted some advice - It is starting to have a detrimental affect on my health again.. Sorry for the long letter, Just came across the forum and it seemed great.

[MelanieGiles]

Hi chris and welcome to the forum

You cannot start another IVA whilst the current one is in existence, so the advice you have also been given by the second IP is odd. What you really need to do is insist that you current IP puts forward a variation for you based upon what you can really afford to pay. This then allows your creditors to take a financial decision whether to accept your revised proposals or not.

I am glad to see that you are receiving counselling for the gambling - as this is not the way out and will put you under further financial strain.

Insist that you speak to your IP directly, and ask them why they feel negative about your offer. It may help to refer to the other IP's opinion (and mine if it helps) as no professional likes to be second guessed.

Good luck and let us know how you get on.

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

[DebtDummy]

chris.z, well done for seeking help with your gambling. As you found out gambling can make your financial situation worse. I wish you the best with taming that beast (smile). Mel's right you can't have two IVAs concurrently. Did you explain to the second IVA company that you already have an IVA and was in arrears? If so they should have informed you that there is nothing they can do for you.

The negativity you said was expressed by your IP when you offered the £220 in payment instead of the £350 may have been caused by a clause in your IVA. Is there something in your IVA stating no variations for the first 24 months? If so, that may explain why the IP reacted the way s/he did.

Sorry to hear about your health. Debts can have an effect on your health. You are under a tremendous amount of stress: the IVA getting approved, your partner left, in arrears with the IVA and getting help with gambling. That's 4 situations you are dealing with and they came one after another. Probably felt like a a tidal wave, overwhelming and swept you off your feet. Please make sure these issues are discussed with the person who is giving you help with your gambling. Yes, you have a gambling addiction, but the others need to be explored as well because they are linked.

Feel free to come here and post. We're here to listen as we have been in financial messes. Rant and rave if you feel the need. Get things off your chest.

You take care and stay strong mentally and spiritually and emotionally. I am sending you one of my debt warrior helmets (read the blog for clarity)to give you courage during your time of need. Wear it proudly my friend.

All I have left is my humour.

View my blog http://www.debtdummybankruwoman.blogs.iva.co.uk.

[Chris.z]

Hi thankyou both for your kind replies. My IVA is with debtmatters and there is no clause stating that I can't vary my IVA within 24 months they just didn't seem happy that I wanted to reduce it. The new IVA company sent me the paperwork this morning ( Churchill I think!)They said they are willing and confident to take on my existing IVA and take it to a variance meeting for me and that they were confident that 220.00 would be accepted. Debtmatters however, were quite patronising and intimidating. They said Bankruptcy wasn't in my interest and were alluding to my occupation, even though I am a nurse and don't work in the financial industry. Melanie I was interested in what you said but didn't understand the bit about refering it to another IP??
Many thanks again

Chris

[ivoriva]

Im sure I have read transferring a IVA to another IP is nigh on impossible. Make sure you read this companies paperwork thoroughly to see exactly what they are offering...

[Sadsack]

Hi Chris

Ivoriva is correct. You cannot switch IP's once you are in an IVA. The only way that you can do this is through the courts - you have to pay for it - and you must have a very good reason for doing so. I am not happy with my IP and after posting about it on here, Melanie Giles responded with the above.

Sue

[Chris.z]

This new company are telling me it is possible as Debtmatters are failing my IVA - Am I being Misled then, as they want me to pay my first payment on June 1st???? of 220.00. The lady I spoke too was adamant that it was possible and told me her director was 100% sure it would be ok??

[scaredkez]

chris don't pay any money to anyone else, if your iva is failing with debt matters then let them draw closure first, they won't necesary BR you, a lot of people have gone on to debt management plans, when this has happened, the new company has not got your iva in the bag so to speak so how can they ask for a certain amount of money already, i would be very weary on that wait for mel to reply don't agree anything with anyone else yet, i wouldn't like to see you waste money to line their pockets and not go towards your debts.
hang in there
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[ivoriva]

Hmmm.. I guess once it is failed then it maybe possible to go into another IVA. However, again Im sure I have read creditors dont like receiving another proposal straight after a failed one - but that may just apply to one that failed to go ahead rather than failed during its duration.

Im sure an expert can answer this one for you. My concern would be if they wont accept a variation, then why would they accept a new one altogether? Also, if it fails then surely it will take time to prepare a new submission with a new company, in which case it sounds like this company you are speaking too are asking for up front payments - so if its turned down, you will probably never see the money again...

[Adam Davies]

Chris
Do not pay any money over.You can not start another IVA until your current one has actually failed.Even then you will have to have a new one proposed and acceped by your creditors.
I,m afraid that I smell a bit of a rat with this "new" iva provider and wonder if they are actually proposing a debt management plan rather than an IVA.
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[MelanieGiles]

You definately CANNOT propose another IVA whilst you have one already in existence with the same creditors. If this is going to fail, then once it has been properly closed and removed from the IVA register it is legally possible to propose another, but what sort of reaction do you think this is likely to have from your creditors???

Another IP charging an unecessary nominee fee for investigating your case which creditors have to ultimately pay?? Increased creditor claims as a result of interest being capitalised for the period your original IVA was in place?? And you having to start again making payments for another five years?? In my opinion this is all a nonsense.

If a new IVA is viable, why is your existing supervisor unwilling to put a similar variation forward for you? I suggest you ask the IP personally, and not a member of his/her staff the answer to that question. Also tell them that you have taken a second and third opinion (which is what my point about "refer to" meant in the earlier post.

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