Ok we're shortly going to set the IVA ball rolling. Having looked long and hard through this forum we've decided to go with Melanie (so prepare for the call Melanie if your reading this) One thing that is bothering me about the whole process is we're on an interest only motgage at the minute and have never missed a payment but we also have a credit card from the same building society, will the fact that they are going to be one of the creditors listed in the IVA effect our mortgage? Also Our house was valued a couple of years ago at 100k and we have 89k outstanding on the mortgage which we obviously will still owe at the end of a five year IVA how will that effect any equity release clause on the IVA? I'm assuming it'd be classed as having no equity if the maximum you can remortgage is 85%.
Hi
Having a card with your mortgage provider will not be a problem. Your house will be valued at year five and you may have to release funds based on that valuation.
Good luck with your IVA
Regards
Well done for researching before deciding on an IP..wish we had done that. You'll be in safe hands with Melanie's team [:)]
As Andy says your property will be valued towards the end of the IVA and if there is equity then you will either have to re-mortgage, or if thats not possible the IVA maybe extended by a further 12 months.
Your IP will explain this in full and it will show on your proposal.
If you have any other questions please ask away xx
You've made a great choice of IP there and Melanie or one of her team will discuss everything with you step by step all along the way. Nothing is too much trouble for that team and I wish you well with your IVA proposal x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Thanks for the replies I really appreciate it. We've already set up a new bank account and have arranged our wages to be paid into the account starting this month, I'm in the process of transfering all the direct debits, once that's done I've got to get details of exactly what we owe and to who, then contact Melanie and her team, at what point should we stop paying creditors? Having read the forums I understand that it's common practice to stop paying while an IVA is being set up but at what point EXACTLY? Also over the past few months I've been earning alot of overtime, working on a depatment at work other than my own. They've just set some more staff on and are going to go onto shifts so the overtime will stop pretty much altogether, will the overtime I've worked in the past few months be taken into account or is it normally based on basic wages then a premium of any overtime worked being paid additional to creditors? Because if it's based on earning over say the last 6 months then the figures are going to be waaay over what I'm going to be earning.
Thanks again for your responses it really is appreciated
Well done for taking that first step, and you have chosen a highly recommended firm to represent you.
As to when you stop paying, that is up to you. Some people stop paying straight away so they can build up a bit of contingency, others make pro rata payments.
Your IVA will be based upon your normal take home pay. Anything extra you work, or any bonuses you get will probably be dealt with on a 10% plus 50/50 basis. You keep the first 10% over and above your normal take home pay, then pay 50% of the rest across and keep the rest yourself.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi there and welcome to the forum from me as well. I shall very much look forward to receiving your call, so that we can look through the options available for your own specific set of circumstances.
As for stopping payments to creditors, personally I would not recommend this at this stage - unless you have urgent things to pay for such as essential house or car repairs, school uniforms or the like - as well as utility or mortgage arrears which should be prioritised. Token or pro-rata payments can help to minimise the ongoing barrage of corrspondence or calls you may receive whilst the IVA is in process, but are unlikely to affect the outcome when it comes to the creditors meeting.
We can discuss this with you more when you do make that call.
Thanks for the reply Jan, that's interesting to know and would make working overtime worthwhile at the minute I seem to be living at work just to keep our heads above water and to avoid using any cards, at least if we're lucky enough to get an IVA approved we may be able to save for any 'emergencies' (my car is 10 years old and the boiler is 15+) [:(]
I can't believe we've let ourselves get into the mess we're in, wish I'd never seen a credit card let alone owned one. It's far too easy to say "yeah why not, it'll only cost us 2.5% each month" but all the 2.5%'s mount up and before you know it your in deeper than you can cope with. It doesn't help when your company says no more overtime and a week later everyone is on a 3 day week for the next 6 weeks. Then the credit card gets a major hammering and a year on you're sinking fast......
Anyway after months of talking about it it's now time to sort it once and for all, my overtime at work is stopping, the 'introductory rate' on a large credit card bill is soon to expire which leaves us in a no alternative situation of sink or swim and I haven't got any concrete wellies! Time to remove our heads from the sand and face upto the mess we've created and do something about it. I'm ashamed of the mess we've got ourselves into but I know we aren't the first and certainly won't be the last and that our debts aren't the biggest out there by a long chalk (although they are quite scary) but now's the time to get the ball rolling and I'm sure with the help and guidance from Melanie and her team we should be able to sort the situation.
It's a frightening prospect but I think it's certainly what we need to learn us to live within our means and budget, for far too long our money has been paid to creditors only to see the minutest amount of money come off the balance, if we were to try an continue paying the minimum payments it'd be our life insurance policies paying off the debts! and once all the payments have been made we've then been in the realms of using cards to put food on the table its one long vicious circle that's spiralled out of control.[:(!] I will of course keep you all posted on how everything is going, thankyou for the big welcome and the replies so far.
Jon
Last edited by justsurviving on Thu Feb 18, 2010 7:34 pm, edited 1 time in total.
Thanks Melanie, I will be in touch in the next few days, just getting all the figures together, do you recommend I ring in those details or fill in the IVA enquiry form on your website?
It sounds as if you have put much thought into the future Jon, and that you have tried everything to manage your creditor repayments, but sometimes it can all get too much at which time it is better to seek professional guidance and support. I will be happy to speak to you when the time is right.
Thankyou Melanie, the time is right and I WILL be in touch shortly, the sooner we get this mess sorted the better, maybe then we can start sleeping easier at night and working to live rather than just exist.
The sooner you take the advice, the sooner you can hand over some of the current problems to an insolvency practitioner, leaving you to focus on learning to live to a set budget, and concentrating on rebuilding family life.
Ok, just filled in the enquiry form on your website Melanie, didn't ring as its a little late but look forward to speaking to you or one of your team shortly. 1st step taken after months of agonising about it, hopefully 1 step closer to sorting this mess out :S
