........ is this all normal?

[s__]

Hi, I am six months in to an IVA with debt free direct, and am struggling with the payments, I am paying 65 pence in the pound back, but they have made me change my mortgage to interest only is this normal. I have also just had a call from First Direct to say that they are closing my account with them as they have been notified that I have an iva, yet I told them about it when it was set up. I have also had no contact with Debt Free since they set this up, even when I sent an email to say I had another creditor threatening court action, I sent the creditor a copy of the IVA and talked to them but they had no contact from Debt Free, not sure what I want to know really - is this all normal?

[DebtDummy]

hello s and welcome to the forum. I am not an IVA expert, but at one time I was looking into one. I had a repayment mortgage and would have switched to an interest only to afford the IVA. My IVA was unrealistic so the repayment mortgage remained. I think it's standard procedure for an IP to suggest switching to an interest only mortgage only to free up some much needed funds which can be applied to your IVA. I hoped this helped you somewhat.

As for DebtFree not contacting you continue to email, rang and send recorded post if needed until they do conatct you. Also, try contacting the IP directly who drew up your IVA proposal.Although DebtFree is an IVA mill someone, an individual has to be managing your case.

And no it's not 'normal' for you to be ignored, but some people do get fuffed around and that's just plain rude. Yes, they are busy, but you are a client and deserve better treatment.

As for the creditor threatening court action. You've done your bit by sending them notification of your IVA. The creditor can contact your IP.

Someone will be along shortly who is an expert and can help you further.

Take care.

All I have left is my humour.

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

[MelanieGiles]

Hi s

Do you mean that your IP recommended that you change from a repayment mortgage to interest only prior in order to make your IVA more attractive to creditors? If so, this is generally advice which is given, as your contributions can then be increased to the creditors benefit and creditors are no longer forced to accept lower contributions whilst you are reducing the liability on an asset which will remain with you once the IVA has concluded.

First Direct do have a policy of not allowing customers who have IVAs to have bank accounts with them, so you will need to change.

To have no contact with your IP, if you have been calling and writing to them, is not normal - so try and speak to the IP directly if you can.

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

[GemmaC]

Melanie - Your reference to First Direct is interesting. I bank with First Direct but neither they or HSBC are creditors. Will there still be a problem with continued banking with them and how would they know if I do not use them for depositing IVA funds to?? I will planning on using my Barclays account for IVA payment.

[Storm]

First Direct have a policy of effectively closing any accounts where the holder is in an IVA.

They will know through the Insolvency Register - my understanding is they are sweeping all accounts every 180 days to flag any IVA's.

[Adam Davies]

Gemma
First direct look at the insolvency register and WILL close your account once you are in an IVA so make arrangements to open another account.
I will be posting an article in the next few days showing the various accounts available to people contemplating or already in an IVA.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Adam Davies]

We posted at the same time Storm !!

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Skippy]

I went to the Co-operative Bank a couple of days ago as I want to open a Cashminder account - the Lloyds account isn't working as I'm fed up with having to find a Lloyds cashpoint when I want money. The staff in the Co-op were excellent - to them my BR wasn't an issue. I won't know for a couple of weeks if I've got an account, but I wasn't made to feel like a second class citizen.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[Adrian Ratcliffe]

Hi S
Firstly the Interest Only option the IP MADE? you take or advised or asked you to take?
Please confirm which.
The Woolich step account is the easiest account for the situation you have described.
All IP'S have to act with due diligence, being advised to take an interest only mortgage without some form of repayment at the end of the term may contradict this.

Regards
Adrian

[Storm]

Woolwich don't offer accounts any more they have all been transfered to Barclays as of mid May.

[lily]

Skippy I had the same treatment at the Coop, they were brilliant and the debit card is really great. I also had the Lloyds cashminder too but its a pain trying to find a Lloyds machine for cash every time.

lily

[Skippy]

If I get the Co-op account I will use the Lloyds one to pay my 'savings' in - car maintenance, tax etc. At least then I won't be able to get at it easily!

I did ask Lloyds if I could have a debit card and was told that due to 'my circumstances' (they can say bankruptcy, I won't cry!) I would have to wait 6 years and then they MAY let me have one! I only want access to my own money - is that too much to ask?!?

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[lily]

I asked them too and they made me feel really bad, I had two of 'them' in there, I didnt expect to be treated 'nicely' given the circumstances but I just couldnt wait to get home. On the other hand I really couldnt believe have nicely I was treated at the coop, I gave them the same honest circumstances. They were fantastic, they gave me respect and were really understanding and cooperative. I went in person and was approved but had to wait ten days for the account. I really hope its successful for you Skippy.

lily

[s__]

Thank you all for your kind, sensible words, I wish I had found this forum in the year it took to set up my IVA! Hopefully this post will be a little more coherant than my first. I was told that it would not be possible to agree the IVA without the switch to interest only mortgage. My shock with First direct was because when I set up the first payment to DFD I made it clear that it was a payment for an IVA, and had also made it clear to DFD that I was opening an account with First Direct - so to get a phone call 6 months later was a little out of the blue. I await the article about bank accounts with interest, I get the idea it is better to go in and discuss an account face to face rather than apply on line though. I think my IVA is unrealistic, but was told that if I applied for bankruptcy I would end up on the same terms, as I have a good salary. When I pointed out that, for example, the month before it was signed my gas/electric payments went up by £35, and that left me with £15/month contingency so could it be adjusted they said it'll be fine, you can adjust something else - as I was in a bit of a state I just signed and went along, now I think maybe I should have been a little more stubborn.

Sorry guys - don't think I have managed the more coherant bit today!!

[MelanieGiles]

Hi s

If you are struggling with your IVA payments then you must discuss this as a matter of urgency with your IP. It may be possible to have the payments lowered to a level which is more comfortable, as I am sure that your creditors would rather this rather than see you go bankrupt.

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