New to forum ....and scared!

[bucpaul]

Hello all,

I hope I'm posting this in the right place. I haven't had time just yet to sit and read the forum thoroughly so if I ask or mention something already posted elsewhere, please be patient with me.

In short, I have debts circa 40k. As a result of years of accumulating more & more debts on cards. The sick part is, it wasn't the result of high living, or emulating celebrity lifestyles- most of this was amassed using cards to help me pay for the so called basics in life, the last time I actually had a holiday was in 1996! I took consolidation loans to harness the debts and long story short, I finally got a job that was well paid. I then took out a substantial consolidation loan as I was in a position to make the monthly payments. I then got made redundant, and here is the catch 22: I thought I would at be doing the honourable thing by getting a job immediately rather than go on the dole, and I am attempting to play catch up. I am on exponentially less money on this job and the sick aspect of it all is that I am back to square on having used the cards in the meantime to help "get by"!

Sorry this is so laborious, what it comes down to is that I think the only way I will ever be free of this spectre is an IVA.

ANY advice is greatly appreciated in these quarters

[lily]

Hi and welcome

Most us here will know exactly what youre going through.

If youre now in full time enployment and are able to offer at least 250 pounds per month. AFTER meeting your priority debts (rent/mortgage, council tax, travel,living expenses and medical costs) WITHOUT paying your loans credit cards, then an IVA would be a way forward for you. What is left over is your disposible income and its this that is used over a 5 year period to fund the IVA.

If you have a mortgae then there would be an equity release clause at some point during the IVA.

If your car is on HP (and is not 'flashy' like an aston martin etc) this should be included in secured debts and payments would run along side the IVA for the duration of the aggreement.

I know this is a scary time, most of us have been where you are now. However the biggest step is to admit the problem and start to addresss it and you have already done that. Its time to forgive yourself, whats done is done and move to the nest step, roll your sleeves up, tighten your belt and resolve the debt, the stress and the fear. Believe me youre not alone.

There are other options you could consider such as a DMP, but with the amount you owe, it would take a very long time. The other one is bankruptcy, if you have no assets to protect then this might be a better route for you, as long as your professional status is not affected. However if you can afford an IVA, this would give some benefit to your creditors.

You will need to work out a budget for yourself for your secured debts plus living/travel costs, etc, include incidentals such as prescriptions. work out what you have left over and give at least three IVA companies a call. Start with the ones on this site and I would steer clear of large companies with glossy adverts, see how you feel about everything, they will run your through your income and expenditure and should inform you of all your options.

finally and most importantly, make sure you understand everything before committing to anything.

Post anymore questions you have and forum members will be happy to help. Please let us know how you get on.

Best regards

lily

[lily]

Admin, this post came onto the social topics page. The main topics are not on the home page, is it possible to move this to the new today seciton?

lily

[MelanieGiles]

An IVA does look as if it could be a solution for you, but also you should consider whether bankruptcy proceedings are more appropriate - or even a managed repayment agreement with your creditors.

If it is important to you to repay your creditors as much as possible, then an IVA would work and at least you could look forward to being debt free in five years time. It sounds as if you have been carrying those debts for a very long time!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[bucpaul]

Thank you for replying and apologies for posting this in the wrong place.

Lily, I've been doing my maths in respect to what my outgoings would be and am trying to include "incidentials" as you have mentioned. Excluding the loan & cards, I could certainly look at £250 pcm, if not more. Fortunately, in this instance, I'm not a home or carowner so I don't have to factor that into things.

Melanie, I did contemplate bankruptcy but as I would be able to repay my creditors in part and can be debt free in 5 years I'd prefer to go down the IVA route. The reason for this is I'm applying for jobs where being declared bankrupt would hinder me, yet an IVA wouldn't "prejudice" me as such when applying This is what my friend told me and she didn't have to declare the IVA in her application, whereas if she claimed bankruptcy she would have had to declare it - the main thing is, she got the job.

Again, thank you for your advice, I'm feeling better already. I will have to do my homework and go over my finances yet again with a fine tooth comb (when aren't I!) and look at proposing an IVA.

[lily]

A couple of other things for you to consider, the creditors play a hand in your budget, it should be basic but sustainable, however 5 years is a long time so make sure you can manage it before you commit.

Also there are good and bad companies out there so be sure to talk to at least two. you can check out feedback on companies on iva.com and IP's I believe are listed also. Melanie who posts here has very good reviews, some of the glossy advert ones, not so good for the presonal touch. I would avoid a company called synergi, like the plague if you were me.

Make sure you fully understand the prccess and what you can expect from it. Its so easy when youre desperate to jump in without fully understanding because you feel its your only way out.

Far better to take the time, understand and agree to something which will work for you, than to agree to anything of desperation only to have it fail and be back to squate one.

I am really glad that you feel better, it does help to know that others are in or have been in the same boat with the same fear and panic.

Good luck and please keep posting to let us know how youre getting on.

lily

[lily]

And I forgot to say that some creditors have certain percentage criteria's for acceptance, such as HSBC. Northern Rock are rejecting a lot at the moment.

I wish you the best of luck.

lily

[Adam Davies]

Hi and welcome bucpaul
Great advice,as usual,from Lily
You are amongst friends on this forum so feel free to post any questions or concerns.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[bucpaul]

Hi again, has been a busy couple of weeks at work but here's what's been happening.

The main debt is my bank loan, I contacted them to explain my situation and to see if I could restructure the loan over a longer period of time. The problem is, with the inflated interest I would only be paying 24 PENCE A MONTH less! I was referred to the debt management department, insurance and about three other departments. I spoke to the assistant manager at my bank who, to her credit, attempted to do everything in her power to help me. The thing is, their hands are effectively tied and ultimately the assistant manager kindly suggested I contact my local Citizen's Advice Bureau.

I've drawn up an exhaustive list of my outgoings, my incomings and a proposal of what I can realistically afford to pay (as suggested by the pre-recorded message left by the Bureau). I'm going Monday as soon as they open. I know I'm taking steps to address my current situation, it wasn't as if I buried my head in the sand, but since being made redundant, it's escalating out of control even though I got a new job right away (which is much less than I was on previously - vicious circle?). I suppose all I can do is see what the Bureau suggests, but until then I have this nasty sinking feeling that won't go away until I see them....

Pardon my virtual naivete surrounding the topic, but do Citizen's Advice Bureaux, when you see them regarding debt, act upon the behalf of the person, in the capacity of an advocate? In other words, do they suggest options to you and if you approve do THEY facilitate it all for you? I suppose what I'm getting at is, if an IVA is the option, would I then say I have the names of some practitioners from this site and forward the practitioners' details to get the process moving?

All feedback GRATEFULLY received in these quarters!

[aguise]

Hi ther Bucpaul
If you decide an iva is the way that you want to go I would contact a couple of Ip's and get their opinions. You can look at reviews of all companies on iva .com. , or a good place to start would be a couple of companys on this site. Advice is free and you can do this without cab. I think they will give you the options and advice but there is no need for them to act for you.Initial contact with companys is free and you can see if they give the same options. Dont be worried about ringing and talking about debt as they are used to it. i remember being scared to death at making the call, but they were so nice and helpful. No need to commit to anything just explain that you would like some initial advice on the besy options for your situation.
I hope this helps a bit. i am like you have debt so please wait fore other answers.
There will be a solution.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[lily]

You are free to choose your IP and company, and I would advise this, sometimes they recommend but do your own research, this is your IVA and your commitment. Talk to at least three companies, they will be making money from your IVA make sure they earn it. Also make sure that other options open to you are explained. You have time, take it and dont agree to anything unless you are 100 per cent certain that you can maintain it.

Good luck, I hope you lose that sinking feeling soon, not nice is it???

Take care

lily

[ray_a]

Agree with Lily do go and talk and get as much information together.

I used a lever arch file to start building up all the info.

I wuld arrange to talk to at least three people.

Please use this forum as a sounding board as we have a lot of experience!

Good Luck

Ray

[whichwaynow]

Hi,
I went to the CAB. They arranged a meeting with a company called Grant Thornton. At the meeting we went over all the options and decided for me a F&F IVA was the best option. I would ring round a few companies to see what they say and go and see the CAB. That way you will have all the best options for yourself. The IPs who post on here are well regarded and Grant Thornton who I went to are also very good.

[bagpuss]

whichwaynow....i did the same thing...went through CAB and then through Grant Thornton (Dawn Shelly) with a F/F IVA....i didnt have a single problem and it went through fine.

Angie xx


My IVA Story......http://bagpuss.blogs.iva.co.uk/2007/09/ ... iva-story/

[whichwaynow]

Yes I found the CAB and Grant Thornton to be very good. Even had a letter from the CAB once my IVA had been approved telling me they were pleased it had all been sorted out. My rep from Grant Thornton was a lady called Jane Lodge. But I would still call a few firms to get some options.