IVA ACCEPTED TODAY OH MY GOD!

[sarah1975uk]

Creditors meeting was Friday 13th July! HSBC and Halifax accepted the iva but with modifications. Welocme finance and other small creditors didnt bother to vote. But i told the IP im not willing to accept all modifications. Should hopefully get a call monday sometime to find out if my ip has been able to re negotiate to my advantage. They want an extra £150 month into iva - my ip proposal was already maxed for my i.e
a charge putting on the house
equity release in 4th year .Ip excluded this from my proposal saying not viable for house with no equity and that it would cost me with my ie. The fact that iva is debt free in 5 yrs which is fine but if i have to equity release then im then committing to secured debt for rest of my mortgage to keep mortage as affordable as possible especially with interest rates going up and up etc etc.
want me to give my credit card back - ip said i could keep it as i only have credit limit of £200 and am not in arrears with it - have told them today i will give it up no probem.
and bank charges i am already in the process of claming back Ive said fine to this to reduce the debts. The creditors have specifically asked that any refund of charges must go to them to pay debts and not to me directly.

I would rather give my house up via bankruptcy than do equity release. I could have been unreasonable and gone via br first off but am not wanting to shirk my responsibility of paying my debts back but by them forcing me into further debt in 4 years then id rather go br and they get nothing. I have 3 small children and they are going to to more demanding and expensive as they get older i have twins aged 8 and son aged 7.

The proposal as it stands is 40p int the £

The debts are 33k + £6k ip fees totals £39k
the original proposal is £335 per month for the 5 years = £20100 back towards total debt of 39k leaving a defecit of £18900.

Under modificatications creditors want £485 per month totalling £29100 being paid back to debts over the 5 years and equity release which the defecit would be £9990. in reality under the modifications would mean id be paying 100% of the debt i owe back including ip fees. Surely under an IVA where by some of the debt is written off this seems a very steep agreement under what the creditors want as an agreed iva subject to modifications.

if not ill be down the court tuesday morning to go Bankrupt. So a day when i felt would be the start of the rest of my life has really gone wrong and im really down and fed up. I feel soooooo sick!.

can someone help me out on this my head is really spinning. Sarah xxx



Thank you for eveyone's help & Support xx

[MelanieGiles]

Sarah

Your IP should have told you that is nigh impossible to avoid the equity release provision. Fair enough to you if it is not for you, but a lot of everyone's time could have been saved here. This modification is unlikely to be negotiated out.

You will only need to remortgage to 85% loan to value, but of course this does gamble on the propoerty market. Where do your creditors feel that you are overspending to warrant an increase of £150 per month. That does seem a very high jump.

Is your IP experienced in proposing IVAs? Bankruptcy is now probably a better option for you given that you have no equity in your property and that you are prioritising the needs of your children. Good luck.

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

[sarah1975uk]

Hi Melanie thanks for replying. Im not sure why they want the extra £150 per month i havent been told yet. The ip is with Clearstart. On friday it wasnt the ip that called me it was their meetings dept who i understand collate the votes on the meeting day. Havent even spoken to the ip directly it always seems to be their office staff or pa etc. I already cut back on my ie at the outset of sorting the proposal aswell.

Was told that they would not put proposal forward that was going to fail. I was told the loan to value and redemption penalties involved in my mortgage and fees etc would enable me to leave out the remortgage clause in my proposal. Its not a case of me being difficult here at all, but i do have 3 children and yes they are a priorty to me as any parent would agree. I buy no means spoil them so its not a case of being lavish with them its basic necessecities to give them a decent upbringing.

Thank you for eveyone's help & Support xx

[MelanieGiles]

Sarah

Stick to your principles and do what is best for your family. This forum is littered with people who have accepted unfair increases to their contributions and are now failing. Better to face reality now, than in six months time where you have really struggled to fund unaffordable payments.

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

[sarah1975uk]

Sarah

Stick to your principles and do what is best for your family. This forum is littered with people who have accepted unfair increases to their contributions and are now failing. Better to face reality now, than in six months time where you have really struggled to fund unaffordable payments.

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

Thanks Melanie

Thats why i feel i need to be realistic here and not accept a huge increase only to potentially fail down the road and end up going br anway. I want to pay back money i owe if i didnt id have gone br straight away when debt spiralled. I will never ever get credit or into debt again, ive learned the hard way as many of us do. But i dont want to be put into more financial hardship either. we have been through so much i just want light at the end of the tunnel xx

Thank you for eveyone's help & Support xx

[sarah1975uk]

is it normal then for me to have come up against this hurdle at the creditors meeting? is it a case of the increase in iva's that the creditors initially impose high modifications and then back down on appeal? surely from a creditors point of view better to accept than debtor going bankrupt and they get nothing?

Ive seen so many others that get their iva's accepted with much less return in the £ than my proposal was offering.

Thank you for eveyone's help & Support xx

[scaredkez]

sarah my iva was rejected at the first meeting and then they asked me to find a further 118 per month, which was impossible with what they had already allowed me, if you know it is going to be a struggle, remember 5 yrs is a long time, i am now 3 months into BR it was the best thing i done taking into consideration my family, i hope you can find a solution soon, BR is not as bad as you think ,ok you morally think you should have paid back, but at the end of the day everything i offered even in a DMP after the rejection was never good enough and i couldn't go on day after day with the phone calls and letters which was affecting my health.
kerri

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

[sarah1975uk]

sarah my iva was rejected at the first meeting and then they asked me to find a further 118 per month, which was impossible with what they had already allowed me, if you know it is going to be a struggle, remember 5 yrs is a long time, i am now 3 months into BR it was the best thing i done taking into consideration my family, i hope you can find a solution soon, BR is not as bad as you think ,ok you morally think you should have paid back, but at the end of the day everything i offered even in a DMP after the rejection was never good enough and i couldn't go on day after day with the phone calls and letters which was affecting my health.
kerri

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

Hi Kerri

I dont have a problem going BR at all, i just wanted to do the right thing. If they come back tome on monday and agree to the initial proposal then ill go ahead with the iva. If they dont agree then much as it would upset me to loose my house knowing id never be able to afford to buy a house again. I will go BR. its already affected my health i just want resoloution. Its just upsetting me with the potential upheaval for the kids we have had a lot to deal with over the past few years without this hanging over my head.

Thank you for eveyone's help & Support xx

[scaredkez]

i understand sarah as we are just waiting to see what is happening with our house, i have explained to the kids that we may have to move, 2 of them think it is exciting but one is not so happy, i hope it all goes well for you on monday.
kerri

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

[sarah1975uk]

And its allllll my fault... what a faliour i feel!

Thank you for eveyone's help & Support xx

[scaredkez]

sarah we have all been through these emotions, you are not a failure, you are just like the millions out there who used credit, thats why we are all here, no one is to blame we made mistakes and thats what life is all about, its a learning curve, you will get through this and be the better person on the other side, and your kids will look upto you and admire you for your bravery, don't lose heart what will be will be, what ever the outcome is the way it should be, i really wish you all the best, let us know how you are doing, one thing you are not alone in all of this, we are all here for you, i had the worst 12 months last year and it will get better.
take care
kerri

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

[MelanieGiles]

Sarah

You will not lose your house in bankruptcy if you have negative equity, as there is no asset to realise. Have a good think about things over the weekend, and see what the creditors say before making your final decision.

As Kerri says - bankruptcy is not as bad as most people think - and she is the absolute expert on that point having been through the procedure herself.

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

[sarah1975uk]

Sarah

You will not lose your house in bankruptcy if you have negative equity, as there is no asset to realise. Have a good think about things over the weekend, and see what the creditors say before making your final decision.

As Kerri says - bankruptcy is not as bad as most people think - and she is the absolute expert on that point having been through the procedure herself.

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

Thank you to both of you for your help tonight. im so up and down and confused with regard to what to do for the best here.On reading other posts on this web site understand its normal. Just having problems finding out what normal is for me right now lol.

Melanie... with regard to the house and br and equity could you give me your expert opinion on how i would stand. I brought my house on an interest only mortgage for £78k last March 06. I have £70800k outstanding on the mortgage am also tied in for the nest 2 years and have approximately £5 penalty fee to pay to exit the mortgage within the next 2 years. How do i stand could i keep the house in br with these figures? or is it likely id loose it? my mortgage payment is £379 per month, id be lucky to rent a 1 bed flat here for that eek! and there are 4 of us to potentially re house!.

Thank you for eveyone's help & Support xx

[MelanieGiles]

I am assuming that the house is owned by you solely? If so, you have equity of approximately £2k before costs of sale - and that would be insufficient for the Official Reciever to apply for a possession and sale order, especially as you have three children. Do you have any friends or family members who would be able to give you this sum to buy out the beneficial interest from the Official Receiver?

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

[sarah1975uk]

Yes the house is in my sole name. If its only about 2k beneficial interest then i could get a family member to buy the interest. Another query aswell is my estranged husband lives in our old family home where im on the mortgage in name only. he remortgaged when we split up to enable me to buy my own home to live in. So although i am on themortgage at the other house i morally no interest in the house. that house has 129k outstanding on that mortgage and worth about 130k. how does that affect me or him?

Thank you for eveyone's help & Support xx