Pre IVA advise needed?

[danieln]

Hello Everyone,

After a long while of putting things off I finally took some steps to improve our situation and just over a month ago I contacted CCCS and tried to arrange an IVA thinking this might be the best solution... however stupidly I purchased a vehicle to replace an older one last September on HP via Black Horse, I stopped paying this in May... when discussing the options with CCCS they said Black Horse would not accept the IVA unless we have made 12 months worth of payments... so we are currently in a DMP we have just made the first payment...

My problem is I feel to repay the missed and required 4 payments or so it could take a year or so if not more in the DMP to get the Black Horse account to 12 months - I just wondered was this information correct? And if so if I were to pay extra to Black Horse outside of the DMP (no sure how but perhaps loan from family) would this be acceptable?

My wife and I have about 310 per month to pay creditors, and debts totalling around 49k.

Thanks in advance,

Dan

[Debtwitch]

Hi Daniel

BH will usually look to reject a proposal where the debt with them is in excess of £7500 and/or credit taken less than 12 months ago/less than 12 payments received. If the debt represents less than 25% of your total creditors, then you may be OK to propose your IVA anyway in the hope that any vote to reject submitted by them will be outvoted by support more than 75% of the other creditors.

[kallis3]

Hi Dan and welcome.

I would speak to another couple of companies as well about your problems and don't just rely on what CCCS say.

I don't know what the position is with Black Horse, but this would be something to be sorted out with a prospective IP.

I recommend that you visit www.iva.co.uk for a list of companies and reviews. Give one or two a ring and you will receive free and impartial advice as to all the options open to you and the best way forward for your circumstances.

[MelanieGiles]

I think that Black Horse may be revisiting some of their lending criteria. Why not ask CCCS to speak to them specifically about your case to see whether they would support an IVA - and as Angela states if they are less than 25% they could be outvoted in any case.

[danieln]

Morning,

Thank you all for your replies, this is most helpful.

I think the problem was when I spoke to CCCS that the car was in my wifes names and this would make up one of her majority creditors... Here is a list of them I hope you dont mind giving me a second opinion?

Bank Of Scotland 25k - Joint
Barclays Bank £920 - Joint
Halifax - £2900 - Joint

Black Horse £10k - My Wife, car will be auctioned so perhaps taken down to 6k or 7k
Hitachi Capital £3000 - My Wife
Next £130 - My Wife

GE Capital £1300 - Myself
Halifax - £2800 - Myself
MBNA £5400 - Myself

I appreciate everyone taking the time to look at this post,

thanks

dan

[Michael Peoples]

There are a number of things. Firstly, the car should only be returned to Black Horse if they are a secured creditor and if that is the case they can be paid in an IVA and your wife can keep her car. Do not do anything until you speak to another IP firm.

Secondly, Black Horse have changed their criteria as Melanie mentioned so even if the debt is unsecured it is not an automatic rejection.

Thirdly, even if it was rejected there is sufficient debts to outvote Black Horse so get another opinion. Your case seems a perfectly viable IVA and do not enter an unsuitable DMP if at all avoidable.

[size5]

I agree. With the figures you have quoted, IVA looks perfectly viable to me, subject to it actually being appropriate advice for you of course.

Regards.

[danieln]

Thanks for your prompt replies, the reason for wanting to return the vehicle was due to running costs etc, also we had issues with the car from day one but Black Horse have really failed to help... I filed a complaint with the ombudsman back in Feb, but they are still to look at the case yet - I think they said it would be looked at on 25/09 - I cant see us winning but ideally I want the money back etc...

We purchased a cheaper car from all our savings so getting rid of this HP car with Black Horse seemed sensible considering its un-reliability and as I mentioned the general running costs and the HP payments.

Actually just re-reading your post it is a Hire Purchase agreement so I thought based on this they would take the car back as it was their until we had paid in full...

As helpful as CCCS have been with the DMP I do really want to go with an IVA as i think it has been quote as 13 years or something to pay the DMP off.. Plus I am aware after a while the creditors will start getting bored and chasing, or selling debts on.

Thanks again for all your help

Daniel

[Michael Peoples]

As it is a HP agreement it does belong to Black Horse and it was correct to return it to them. Given that the vehicle has been returned Black Horse will be entitled to a dividend from the IVA for any shortfall on the agreement and I see no reason for them to reject an IVA.

[danieln]

Thanks, I requsted return over 2 months ago, I am still chasing them apparently they have sent forms out for us to fill in to enable them to collect but have nothing yet? They have re-sent these as of Monday this week but well see, it is like they are purposly not collecting it, silly when we have paid nothing for months on this car.

[MelanieGiles]

They are bound to get round to it at some stage, but I would crack on with the IVA application in the meantime.