legal action is being taken against me

[r.t.v]

if legal action is being taken against me would it still be possible to enter into an iva

[aguise]

Hi RTV
If you can give more info and dont mind everyone will advise. Amount of debt, who to, what action is being taken, number of creditors and your income.

Ang

[MelanieGiles]

You will need to confirm the type of legal action you are referring to.

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

[r.t.v]

Hi Melanie

i have recieved a letter from a company called 1st credit it is a legal proceedings letter as i have defaulted a loan i had with the abbey they are demanding £8058.96 i called the company and tried to negotiate but was spoken to very rudely and told i had 7 days to respond or face legal action please could you advise me as i dont know what to do

[MelanieGiles]

1st credit are purchasers of bad debts so far as I am aware - Storm is this correct? They have probably bought the debt from Abbey and are now looking for a return on their investment. If you have appointed an IP to act on your behalf, I suggest that you refer this matter on to them.

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

[Storm]

Yes - they are debt purchasers.

Good and bad feedback to be honest they seem to be agressive when the initially buy the debt (They use debt to purchase the debt ! - funded by Barclays)

More info - http://www.1stcreditltd.com/

[sonyse2t5]

No one can be made to pay what they cannot afford whether it is IVA or DMP, if your IVA will take time to complete, then do an expenditure sheet and sent it to them to prove what you can afford.

What can a judge do if you have provided prove to the agency you can't pay the full amount??

But consult CAB for advice in the short term

[r.t.v]

here is a full list of me and my partners debt

halifax credit card £2920 paying a reduced amount for 6 months in agreement with creditor
tsb credit card £3250 again paying a reduced amount for 6 months in agreement with creditor
abbry loan 8058.96 this has been passed to 1st credit who are going to begin legal proceedings within 7 days
tsb loan £1750 agreed a reduced amount over 6 months with creditor.
halifax loan £2700 will be paying a reduced amount for 2 months then creditor will be making contact to re schedule the account and the payment s will go back up to the full amount
hsbc loan £4176 this is a consolidation loan of my overdraft and credit card which i must pay £75 a month.
halifax credit card £1815 this has been defaulted to a debt collectors agency who i have agreed to pay £40 a month to.
we also have various overdrafts
halifax £1000
tsb £650,£500 and £500 all of which are kept in line by paying some money into the accounts in question
so our total debt is £ 27319
our total income is £22150 as my patner is on maternity leave and as a result our income has reduced significantly but even when it goes back up we were only just covering the minimun payments
i have only just heard of ivas so i do not have an appointed insolvency practitioner
we have managed to negotiate with most of our creditors this will help in the short term but in the long term it will continue to be a problem

[MelanieGiles]

If you are managing to make minimum payments, then you are not insolvent and an IVA would be inappropriate for you. But if you are struggling to make those payments, or are only making them by borrowing more money each month, the perhaps either an IVA or a DMP ought to be considered.

Creditors are very concerned at the moment that people are trying to enter IVA's or being advised to do IVA's just to avoid paying interest, so they will carefully review an IVA proposal to check your affordability before confirming acceptance.

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

[r.t.v]

i have had to agree reduced payments from most of my creditors but these are because i cannot make the minimum payments.

I also called 1st credit today to advise them i could not make the full payment they wanted and they attempted to scaremonger me by saying they could force the sale of my property, i dont believe this is possible for an unsecured loan of £8000 as my property is joint owned.

[Storm]

Sounds like they will persue judgement and a charging order which means there debt will become secured.

Were you not able to negociate any form of payment to them ???

[r.t.v]

no they were not interested at all in negotiating any kind of payment which i thought was pretty harsh!