New Iva - advise please :)

[nosasani]

Good afternoon all,

First of all i'd like to say it's a fantastic sight and i really see a strong unity with every one in similar circumstances.

I'm 21 yrs old and i live with parents, my debt begun when i purchased my first car using a personal loan with my bank. since then i had a credit card also with my bank and further debt accumulated due to unforseen circumstances with work and so on.

I'm entering a IVA with payplan. I've done the initial stage(s) whereby they are able to contact my creditors, which include my bank, capital one, vanquis and Welcome finance.

2 unsecured loans and 3 credit cards (small amounts)

I have a few questions and concerns id like to vent really and hopefully i can have them answered

1, I've set up a new bank account with co-operative and its all been accepted. Now, i've sent all the relevant docs to payplan regarding my payslips, proof of residency, proof of rent (living with parents), loan agreements and recent card statements. Should I cancel my direct debits on my loan(s) with welcome and natwest now, whilst the IVA procees is beginning?

2, Has any one had any dealing's with welcome finance whilst on a IVA; the debt i hold with them is un secured and i've made them aware i may be entering a iva agreement. Is the hastle quite harsh? and will they be abliged to accept token payments?

3, My job is a sale's based role and on average id say i achieve bonuses perhaps 8 x out of the 12 months in the year. my basic salary after deductions is £1000, now if i achieve a bonus of £700, Should i just advise payplan and pay up the 50% straight away? or should i wait and accumulate it as residual income for my annual review?

4, What is the chances of the application being accepted with welcome finance and natwest, are they ok with iva's?

5, I will continue to pay my minimum payments on the credit cards, so this should hopefully stop calls from those 3 creditors for the time being. is this ok?

Thanks very much for your time.

Regards

Nosasani

[kallis3]

Hi and welcome to the forum.

How much do you owe in total to your creditors? If it's less than £15k and you have less than £50 per month DI then a DRO mighty be an option for you.

Co-op are a good bank to go with.

I would speak with one or two more companies. Check www.iva.com and give one or two more a ring. The advice is free and impartial.

If you can make your minimum payments then continue to do so. It will make no difference as to whether an IVA is accepted or not.

[nosasani]

I owe just over £12500 and what do you mean by di and dro? im sorry

my rent is 350, fuel 100, insurance(s) 50, food/living 195, phone 35, current debt per month is just over 480 pounds (if i just do min payments on credit cards).

Thanks

[kallis3]

A DRO is a debt relief order and you can do one if you have less than £15k debt, less than £50 per month disposable income after your essential bills have been paid.

If not, then I would imagine that with that amount of debt a debt management plan might be better than an IVA.

[nosasani]

sounds interesting, i've looked at both routes, but pay plan recommended the iva as the debt management plan has a much lesser chance of being accepted and not legally binding etc.

does any one have any experiences with welcome finances when going through debt resolutions?

[kallis3]

A DMP isn't legally binding, but as long as creditors agree to free the interest and charges then it is a good way of dealing with your debts.

With a DRO then your debts will be sorted within 12 months.

Please speak with some other providers before making a final decision.

[nosasani]

if the iva doesnt get agreed, what do i do next?

[Shining]

I, personally would take the advice of one or two other Insolvency companies. Why not take a look at www.iva.com for a list of companies and some reviews of these. The professionals who post on here also come highly recommended.

By taking advice from others you will be aware of all debt options available to you and ensure you get impartial advice. It will be time spent well now. x

[nosasani]

Hi i've just looked on the justabank website and the creditor list's names have all changed to for example... natwest/rbs is now 'rbs at the insolvency exchange' and welcome finance is now 'dwf llp' which is a law firm..

my wages are being paid into my natwest account on the 28th, should i be concerned that theyll be frozen? i'm a little nervous; as said above ive got my co-operative account details now but its too late to submit them to work as its gone past the cut off date.

I'm worrying a little

[kallis3]

Sounds as though they've all been sold on.

As regards your wages, go and fetch them all out as soon as you get paid and put them into the Co-op.

[nosasani]

can they get sold on that quickly?? its been a matter of perhaps a week and a half? but i have done everything very promptly i suppose?

and ok ill do that the morning im paid

[kallis3]

Pehaps they haven't then - I know mine are with the Insolvency Exchange, Max Recovery. Robinson Way and Blair Oliver Scott.

[nosasani]

does that mean any thing though? it just means the debt has been sold on and they are now managing it through the iva proccess?

[kallis3]

It doesn't mean anything. Just means that those companies will be th ones that vote for the IVA.

Shouldn't make any difference.