Nervous and needing reassurance

[fifilebonbon]

Hello all - I have been reading through a number of topics on this very interesting forum and am desperate to get some first hand experience of what an IVA is REALLY like. To give you a synopsis of our situation....my husband is a self employed (sole trader) truck driver and I am a full time mother of 2 small children. Since starting out on his own 7 years ago we have managed to accrue £128,000 of debt through various sources (credit cards, loans and overdrafts) and the debt has come through various reasons - new business teething problems, a company went bust owing my husband £16,000, we made an attempt to try to live abroad and just general cost of living. To date we have managed to juggle the debt and have always made repayments on everything with the exception of the odd late credit card payment, and whilst we have no creditors banging on our door at the moment we cannot continue to keep the wolf from the door indefinitely. So we have made initial enquiries with the Debt Advice Trust, who recommended that we apply for an IVA and have sent us a pack, and so we are in the process of gathering all the necessary paperwork required to proceed with an IVA. I am just filled with panic and fear at what this "too good to be true" solution is really all about. Our fixed interest rate mortgage comes up for renewal next year, we will have a tax bill in the region of £10,000 next year which we been unable to set money aside for, how do we get another business and personal bank account? My husband requires HP for his truck which will need to be replaced within the next 2 years (his current HP will be finished in early 2010) will he have problems refinancing another truck? So many questions......and I anticipate that after looking at all the expenditure that we have for both the business and personal debt we will only have about £750 to be able to pay for an IVA - on a debt of our size would this likely to be acceptable? So many questions and so much fear and panic I would just love to hear from people about their experiences and what all this really means. HELP!!!!!!!!!! Are we considering the right thing?!?!?

[facingittogether]

hi - firstly a big welcome from me!

i am not a expert so can not give you expert advice but we are in a iva and heve been since april this year!

our combined debts were £160 thousand and we currently pay £770 per month into our iva and 50 per cent overtime also (we are allowed to keep the 1st 10 per cent of overtime!

i know this is a worrying time for you and living in a iva means living to a budget but it does take the worry away of creditors phone calls and letters etc and also gives you protection! so a iva is not to0 Good to be true it really can enhance your life and enable you to sleep at night!

hopefully a expert will be along shortly - keep posting as there are lots of people on here to support you!
good luck

love barb x

[fifilebonbon]

Gosh thanks Barb - your reply has actually brought tears to my eyes as it just feels so reassuring not to be in this situation on our own. Thank you so much for responding so quickly. I really hope that we will be able to resolve our debt problem and find a manageable budget to live within. All I seem to think about is our financial situation at the moment and I can see the grey hairs appearing daily! But thank you and I hope to get some more solid advice from some experts and other poor souls!
Love Fi x

[kallis3]

Welcome from me too.

I wholeheartedly echo what Barb has said.

Mine and hubbys IVA's were approved in April, our combined debts were about £83,000 and we pay £615 between us.

It is a great lifeline, and means you can get your life back without worrying about money all the time.

One of the technical experts will probably be along later and give you some advice as well.

That's the great thing about this forum - you get support and advice from people who know exactly what you are going through, and free advice from experts.

[facingittogether]

r u welcome hun!

i can remember the sinking feeling and the worry and sleepless nights, we were very much like you up to date with payments but knew it would not be long before we sank!

obviously i dont know which avenue would be best for you to go down as i am no expert but i know there will be a way forward to you!

i know you have spoken to a company already, but melanie giles comes recommended on here, she is our ip and i can honestly say she and her team are just marvellous from the inital phone call i felt a weight lifted. they were so lovely and non judgemental, i was like you and thought we were the only ones in the world in so much mess but honestly you are not alone and you will get through this!

keep posting, there are loads of us who have been through similar on here and we will support you however we can, be proud you have faced your problems and thats one of the hardest parts - from here it will start to get better i promise am not saying you will not have your down days but you will be working towards a solution and a end to this noightmare and you will have professionals and us here (forum buddies) to support you!

am going out now but will be back later - keep yer chin up hun - you are doing great!

someone who is an expert will be along soon!

love barb x

[Adam Davies]

Hi
Be sure to alert your IP to the fixed term coming to an end next year so that they can budget for you going onto a variable rate.It may also be worth contacting your current HP provider and see if they will re finance your husband if he enters into an IVA.
Good luck

[Sarah]

Hi

The one thing i would recommend it getting new bank accounts before you start the IVA process as i know some people have struggled to get them after. Please know that you are not alone since being in an IVA i have spoken to many people that have got debt issues and havent made that 1st step... the main thing is you are facing up to it

xx

[fifilebonbon]

Hi guys - am feeling so overwhelmed with such wonderful messages of support from complete strangers - makes the world seem a better place already! THANK YOU! Andy will get my husband on the case with finding out about the HP status and will make sure that whoever my IP provider is they know about our mortgage and I guess the Tax Bill too - does anyone know how that will work. I have obviously asked these questions to the Debt Advice Trust who in fairness have been really kind and helpful but I am so terrified of going down the IVA route and then finding that we lose our house or my husband cant continue running his business. Sarah - thank you for your advice re the bank accounts - I had kind of assumed that we would need to set these up prior to an IVA application process starting. Can anyone recommend banks that will be happy to open new business and current account whilst our existing banks accounts are still running and are living within overdrafts? Will we need to mention anything about the fact that we will be applying for an IVA? Or do we just keep shtum!! Thanks for your help guys and lovely words - got a feeling I'm gonna be on this site for quite some time to come!

Love Fi xx

[kallis3]

Hi Fi,

Nationwide and Co-op are two banks who are usually good for accounts for people in or about to go for an IVA, as long as they aren't one of your creditors.

As for business accounts, I really don't know about that. One of the experts will be advise about that one.

Your accounts can't have an overdraft facility.

[fifilebonbon]

Thanks Jan - I will await advice from the experts re business accounts but I know we wont be able to have an overdraft - just want to know that we will be able to have a bank account for business and personal use.

Fi x

[facingittogether]

i really am logging off in a minute lol!

you can open a bank account with anyone who is not one of your creditors. i didnt tell them i was enterig a iva, just keep schum!
we opened ours with the co operative bank and a few people seem to recommend them on here (obviously if they are not one of your creditors), they gave us a full account as our credit rating was good at the time prior to the iva. be careful who you do open an account as some creditors are linked am n ot sure which ones but am sure someone can advise you on that!

love barb x

[Sarah]

I find Natwest great you get a solo card (which is pretty much accepted any where now) and online banking. I didnt even have to go into branch i just set it all up on the internet

Again not sure about the business account

xx

[kallis3]

Most banks will open an account for you prior to your IVA if you don't tell them about it, but once they know about it, some of them will close your account.

HSBC and First Direct are notorious for doing that.

[fifilebonbon]

Thanks again Barb - I need to log off and get on with my jobs before the baby wakes up too!! But am getting such solace from you and your fellow members that I keep coming back for more! I dont think that Coop or Barclays are linked to any of our creditors. How do you find out if they are? I guess I'll wait for an expert to contact me re that. But will def get one set up before we send in the IVA application! Thanks again Hon!

Fi x

[fifilebonbon]

Sorry thanks Jan and Sarah too - NatWest is our current bank and our most major creditor so that will be a no no - I have seen on here that Coop and Barclays seem to be okay with the likes of us. LloydsTSB will be no good to us since we have a loan with Black Horse. Had thought about HSBC but clearly they not a good idea then either!?!? God its a b***** minefield and my stomach is in knots!! xxx