IVA fear

[sparklywatcher]

Okay so here we go - after years of paying my bills on time every month, it has got to the stage I am paying so many bills that I run them up again ? Confused well I pay £200 off a credit card for example and then by the time I have paid all the bills I have nothing left so I use the credit card for shopping fuel etc and then have spent more than the £200 I paid off... close to breaking point I called the national debtline. Very very nice people though it does take a while for you to get through. They sent out the personal budget sheet... the sudden realisation that I am nearly £19,000 in debt is horrifying. After doing my budget I have £205 spare income a month, as that is the minimum payment on one credit card I begin to understand why I am struggling every month. The national debtline have advised an IVA and also advised me not to pay any bills this month or the companies will not believe I cant manage.... and stupid though it sounds I am really scared. I am already dreading bailiffs and I am not even behind on any payments yet... I just dont know what to expect

[MelanieGiles]

Hi there and welcome to the forum

It appears that you do not have sufficient money to cover the contractual payments to your creditors, and you would be well advised to take professional advise with regard to your situation. A DMP or an IVA might be the right solution for you if you feel that you want to repay your debts, however bankrutpcy proceedings could also be considered.

You are a long way away from the bailiffs calling, but I would not delay getting proper professional advice to avoid the situation getting any worse.

[Skippy]

Hi and welcome to the forum.

First of all, please try not to worry - easier said than done I know! You've taken the biggest step by admitting you have a problem and doing something about it.

Do National Debtline do IVAs or do they refer you on to an IP? I'm sorry, I don't know a lot about them. You can always take advice from another couple of companies to make sure that you are happy with the advice. You can find details of companies on www.iva.com, and the IPs who post on the forum are highly recommended.

If it makes you feel any better, I thought I owed about £35k, but it turned out it was nearer £65k!

Don't worry about bailiffs and CCJs - if you are going for an IVA your IP can apply to the court for an interim order if it looks like this might happen.

Good luck, and please keep posting x

[sparklywatcher]

The national debtline refer you to an IP, who apparently dont take any money upfront so you dont end up any worse off financially. However I am aware from reading that IVAs can be refused by your creditors.. what reasons may they refuse an IVA on ?

[Adam Davies]

Hi
They may feel that they will receive a better return via an informal debt management plan or that you will not be able to afford the IVA.
Under new protocol you should receive a valid reason for rejection and to be honest if your proposal is protocol compliant and affordable then it really should be accepted.
Regards

[sparklywatcher]

well at least that is something. I have never before not paid my bills, I almost feel like I should pay them until an IVA is agreed but have been advised that if you are up to date on your account then they can refuse IVA saying you can afford to keep account up to date without it... For an IVA what do I need to provide document wise, need to start looking for it all... I have far too much paperwork..

[freelili]

Hi Sparkly watcher

I just wanted to say that I understand what you are feeling right now. That day that you sit down and work it all out is the biggest wake up call ever, right? Well its a sleep stopper too, the best laxative I ever had and I think, if I remember right I balled my eyes out for around three day calling myself every stupid idiot under the sun. Day dreams turned into day nightmares of having everything waltzed out the front door in front of neighbours pointing and laughing. Then you wake up and feel that someone switched the light off as you cannot see anyway out of this one and any minute now youre going to choke on your own stomach. Am I close?

Well, you have already done the hardest thing, that is admitting you cant manage without any help anymore. Its quite easy at this stage to start worrying about unknowns, dont do it hun. Take one day at a time, there is a solution out there with your name on it. Forget existing like you did yesterday wondering how to make ends meet. Youre now about to start living, as you get closer to a solution you will feel what I mean.

Although it is at times a scary journey, you are not alone, every step of the way there will be someone here who will understand and lead you on.

Good luck for now.

[MelanieGiles]

Which IP firm have the National Debtline referred you to as a matter of interest?

You will need to provide your IP with details of all of your outstanding creditor balances, details of your income and expenditure and any assets you have. You will also have to provide photographic identity for yourself and copies of bank statements for at least three months.

[sparklywatcher]

Hi Lily, thanks so much for your message, is nice to know this feeling of complete despair is "normal". I do feel absolutely sick inside.. have not had a proper nights sleep for the last week. I dont even want to talk to my friends or family about it as I am embarressed and ashamed i am in this position. I feel like an idiot, like a failure and annoyed. Thanks again for the support

[sparklywatcher]

Hi Melanie, i have no idea who they are referring me to they just took all the details of my budget said I had £200 available for an IVA and that someone would contact me from one of their IVA providers.. will let you know when I do.. though unsure how long it will take for them to contact me?

[sparklywatcher]

regarding the bank statements for three months - will it go against me anything I have bought, i took my son to a safari park during the school holidays will that look bad on me, as if i am struggling i should not have done that, but i just wanted him to have one nice day out of the two weeks he was off ?

[facingittogether]

hi

a big warm welcome from me too!

hun, i remember the feeling so well, the being scared, feeling stupid, feeling i had let every one down and the panic that there was no way round it!

you have made the biggest step of all by facing up to it and yes you will have lots of down times on your journey but there is a solution for you and a light at the end of the tunnel. i still find this hard to admit but i hope by me doing this it helps you - we were to the tune of £160,000 pounds in debt when we faced up to our demons but a iva was the way forward for us and we are now 13 months into it and although money is tight, we are in control and can now sleep at night! melanie giles is our ip and i cannot praise her and her team enough for hlping us in our darkest hours and still being there for us on our journey now!

its natural to be scared of not paying your bills, you are the same as we were paying everything on time but robbing peter to pay paul and like melanie says you are a long way off bailiffs knocking!

take advice from another couple of ip a, make sure you feel comfortable with the one you choose and remmeber alot of us have been where you are now and have been given a solution and life is brighter for us!

take care and keep posting - good luck with whtever solutiion you choose

love barb x

[thunder]

hi Sparklywatcher. I am in the exact same boat as you Just realised my debt as I have been juggling credit cards etc and it has just been building up over the months plus I am waiting for a call to discuss putting the IVA in motion. I still at the feeling a TWAT stage and have not missed payments yet just dont know how to pay them so nervous about missing them. So welcome to the forum I have found loads of great advice on here the last few days and will help with your decisions but from some of the advice I have got shop about first.

[freelili]

Youre not a failure hun and I dont think anyone is going to punish you for doing something nice for your son. I do understand how you feel, its a really horrible time and I feel for you.

Just take a step back and tell yourself we all make mistakes, even big ones. Its not a crime its a mistake. You havent hurt anyone, you have just found yourself in that dark place called debt street. Its very easy to do, there must thousands of members here now and most of us have done the same. Youre not alone, what is done is done, dont torture youself anymore by thinking youre stupid, bad, failing, etc, you will be suffering enough.

Its so easy to withdraw from everyone when youre feeling so down on yourself, but youre trying to find a way through a very difficult situation. That takes guts, I promise you it will get better. You need to tell yourself, yes I can do this, one day at a time, I will get through and you will.

Take care now hun, thinking of you.

[sparklywatcher]

thank you all so so much for your support, i have been so nervous and felt so lonely with it all my oh doesnt understand as he has never paid his bills on time and has spent his life in debt and doesnt really care so his advice is "dont worry about it" which would be great if you could just stop worrying. Is so lovely to come on here and read about other people that have got into the same situation as you and lovely to get all these messages of support. Makes me feel less despairing and alone. Thank you from the bottom of my heart...