just entered in to an IVA

[welshlass]

Ive just entered into an IVA with debt free direct and although it seems like a good solution i'm scared to death, its still in the early stages about 6 weeks in so far, and now I have to close down my bank account and open another, so more creditors will be on my back. I'm feeling so low and stupid for getting into this situation at the moment everything is looking really bleak, although the repayments of the IVA are #580 a month which is under half of what I was paying, i need some reassurance from someone who has been through this. Please tell me everything will work out [:)]

sara

[Oliver]

Sara

Obviously without knowing anything about your circumstances, it is difficult to comment on the suitability of IVA. However if you have been properly advised and the IVA is right for you, then it is absolutely the best way to deal with your debt.

I am sure you have been made aware by DFD that from the moment you agreed to go ahead with the process, it will take c6-8 weeks to get the IVA agreed by your creditors. During this time, they will continue to send you collection letters and payment demands. They might also telephone you asking where their money is. However, you can be assure than once the IVA is in place, the chasing from your creditors will stop for good and your world will totally change for the better.

You must note that although an excellent solution, the IVA is not a magic wand. It is a very serious procedure and you should make sure that you fully understand the implications of it. For example if you enter into an IVA but then are subsequently unable to pay, you run the risk of being forced into bankruptcy. The rule is, never agree to any IVA terms which you do not believe you will be able to sustain.

In order to property understand your IVA agreement and its implications, I recommend that you ensure that you meet with your insolvency practitioner face to face. You will then have the opportunity to ask any outstanding questions and satisfy yourself that it is the right thing for you. You should ensure your current IP will make arrangements for you to do this. If they will not, then think very carefully about what you are doing and make sure you understand everything fully.

The advice you have been given about your bank account is absolutely correct. Open your new account and start using it as soon as possible. This wil protect your money from your old bank which as a creditor could take it from you without warning.

I hope this helps

If you would like further information about IVAs or other debt solutions, please feel free to contact us.

James Falla
www.thomascharles.com

[ClearDebt]

Sara,

Can't reiterate strongly enough James's comments about ensuring you have a face to face meeting with a suitably qualified person in order to fully understand what you are gettinmg into - it will really help to reassure you and it is something your insolvency practitioner is required to offer you.

Did you shop around before settling for DFD? I am interested as to how different the surpluses (monthly payments) calculated by different firms are, as well as the levels of fees (something you don't really need to worry about, as they come from you surplus).

Good Luck,

Andrew Smith


ClearDebt
www.cleardebt.co.uk

[welshlass]

Thanks for the replies, I did look into all the implications of the IVA before I entered into it and looked up the pros and cons and im sure it is the right decision for me and my position, briefly my husband and myself over the past 10 years have accumulated about 60,000 pound worth of debt always taking another loan and consolidating the others but then still not being able to make ends meet. The payment under the IVA although quite high at 580 pound is alot cheaper than the original amount of 1200 approx that we had to pay before. To be honest I didnt really shop around for different IP providers as I was so desperate, and all communication has been made over the phone but so far I would say the service they have provided me with has been fantastic, although I have nothing to compare them too. I really appreciate the advice that you have taken the time to give me, thankyou.

sara

[lessie1]

hi..have you heared about payplan partnership.. any experience or heared from them please let me know thank you

lss

[neverending]

Hi Welshlass
Some good comments above and your situation is so common.Most people tend to go with the first sympathetic company that they come across as I did AND I had a face to face meeting.If I knew what I do now then I would have asked many more questions but at the time you feel embarrassed and grateful that someone is helping you.
If someone is reading this forum and contemplating an IVA then please do not feel that the person arranging your IVA is doing you a favour.They may well be, but they are being paid very well for doing it and will be very helpful and positive at the outset.You need to speak to several companies before commiting to one.A little bit of time spent doing your homework on IPs will prove to be time well spent.

[MAY2006]

Hi Welshlass, the first time I heard about IVA's was from Debt Free Direct and I found them very sympathetic and they explained everything to me. However, within 48 hours of speaking to them my circumstances changed drastically and I went to my local CAB and they recommended another company Grant Thornton who I used. I had 3 face to face meetings with them at my local CAB.
I agree totally with what Neverending has put, they are paid extemely well for arranging your IVA so you must feel that you are getting a good service from them and feel confident that they will fight your corner if things don't go well initially.

[ray72]

hi sara, i am in exactly the same possision as you, 60,000 the thing with an iva is if you keep up the payments all will be well, like its been said, your ip is being paid well, so let him do the worrying, relax and start to live your life, as you have not ignored the mess you got in but did something about it, all the best for the future, ray. oh by the way what part of wales you from, as im welsh

[London Coool]

hi..have you heared about payplan partnership.. any experience or heared from them please let me know thank you

lss

I am just about to enter into an IVA through Paypal partnership. They have been very helpful and proactive. They have dealt with my creditors pending an IVA meeting and have already arranged for a valuation to be done on my property (the 75% equity released is based on the valuation as at this month to be released in my 4th year of IVA).

The staff are quite friendly and professional (although some work from home)and when I told Egg (the CC company) my IP's name and details they confirmed that they knew her very well and that she is quite good. The good thing about Payplan is that they do not charge upfront and their charges are very very modest as they are a Charity,this makes more money availabale to Creditors and hence their preference for dealing with them

[neverending]

Hi
Your IVA journey seems to be all going well and its good to see someone who understands and explains well the equity release aspect of their IVA
Good luck

[Dominic]

in away i am glad i did not buy my flat off the council now, the leaseholders got letters from the council demanding 44K for work on the roof which has not been done yet. And I would have had to do the equity side of the IVA too.

[batawi3]

Dominic same here, I was contemplating buying my flat off the council too, but then heard that they were going to do the decent homes scheme and my bill would be 20k+. It might be a good idea to buy your flat in the second year of your IVA now as the rules have changed, basically if you buy your council flat, you will not be able to sell it or release the equity for five years, and by that time your IVA would have finished and you could make a health profit!!! That is what I am going to do once I have completed my second year, hopefully they would have done their work on the flats by then!!!!

[Dominic]

good idea....