Scared, Worried and Confused!

[sally.b]

I have just got the phone to a company that is going to help me with my debt. He has told me that i have to sell my house straight away (my parents have already offered to put me, my husband and our dog up) He has told me to cancel all direct debit to any unsecured creditors and to ignore all call from them.
He has also told me to try and use some credit cards that i have about 4K on to pay some off of the (21K) unsecured loan i owe to Northan Rock as they dont take likely to IVA's and i would have more of a chance of it being accepted. I also have 25K secured to Black Horse!!!

Is this all correct? Im so scared about whats going to happen and need some advice please. Is this the right was to do it all. I have 96K of debt and dont want to go BR if i can help it. Im really upset with the fact that i have got myself into this and dont really see a way out. Any advice would be a help. Thanks

[scaredkez]

hi sally welcome to the forum, which company did you speak to, firstly i would advise get a few opinions off a few companies before jumping in with both feet, in my personal opinion maxing your cards out to pay something off the debt to NR is not a good idea, yes they are being difficult with iva's but it is all down to individual circumstances and do you really think that because you have paid £4k off it, it will make all the difference, the best thing to do here, is list your income and expenditre, with out the unsecured payments that you make each month, a list of your debts and who they are too and i am sure the experts here will be able to help you also.
good luck don't do anything in haste.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[aguise]

Hi there Sally
I agree with Kerri dont max your cards out it wont make much difference to n rock and the creditors cards you use may not like the fact you preferred n rock and used their money to pay off n rock and in turn they may not be accepting for that reason.
Post more details and get some other opinions and try at least a couple of companys.

Ang

[sally.b]

He said it was shifting the money around so that as it wont be as much i owed to NR they would be more likly to agree??

Income - £2300 a month

Lloyds TSB - 14K owed and monthly re payments are £300

Black Horse - 25K secured - £400 a month

Barclays - 5K - £100

Capital one - £200 - £10

Next - £400 - £20

Black Horse (sofa dfs) £1000 - £30

Egg - 23500 - £650 a month

Mint - 2K - £42

Virgin - 3500 - £52

NR - 21K - £110

Do you need my monthly expenditure?? Could you advise me on the best option of geting an IVA. Ive been told that as more than 50% of my income is spent on my mortgage i need to sell my house?? Should i cancel all payments to unsecured creditors?? Can anybody recommend a good company to call to help with all the above??

[scaredkez]

sally can i just ask you are prepared to sell the house, have you any other assets? is there any equity at present in your home?

sorry for too many questions i just want to see why you have ruled out BR,
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[sally.b]

Everyone will find out if i go BR. I work in Finance and feel that i will Jeopodise so many things for me. I am prepared to sell the house if it means i dont have to go BR. I have a car worth about 6K (which was brought with the 25K secured borrowings)
I have about £20k equity but have £25K secured on house to Black horse?? Would NR get priority or Black Horse??

[aguise]

Hi Sally
If you could add what it costs you to live all your bills etc but dont include the loans and cards etc .
Also I would suggest any of the companies on this site, I know Melanie works hard for her clients and gives the personal service I feel is so important.Her email is on her posts and also with the experts page.
Dont worry you can sort this out you just need to be well informed and understand what to do. Dont rush at anything.

Ang

[lily]

Sally Kerri is correct as is arguise. From reading your first post, I feel that the advice is not the best. What IVA co would tell someone to increase their debt??? Sally we know how scared you are but be careful, you do have time (I know it doesnt feel like it) but this has to be done in your best interests. It is NOT the right thing to advice someone seeking insolvency proceedures to use more credit. NR will look at your proposal as an individutal and they will judge as they see fit, 4K is not going to help but it will make things worse for you. Most people consider IVA in order to hold on to an asset, not to sell it. The mind boggles here, who gave you that advice??? I realise that you are stressed and we have been where you are right now but you are not alone. Try reading Kerri's blogg as she has been through a very similar situation and may not lose her home.

Good luck babe, please dont worry

lily

[lily]

One more thing, what equity do you have in your house??

lily

[sally.b]

about £1600 roughly including Mortgage, bills, parking, electric, phone, tv licence, council tax, toiletries, food, water, pet and house insurance,petrol tax, insurance... no debt. We have about £700 disposable income. Is this too little expenditure or too much...??

[sally.b]

Equity is £20K about. They told me to just SHIFT the money not to get more into debt, they said that it looks better if i only owe NR £16K instead of £21K He said ideally i should try and get it to £15K but £16 is better than nothing.

[sally.b]

Expenditure is for me and my hubby. Just so dont think its just me!!!

[aguise]

Hi Sally make sure you include everything, prescriptions,car maintenance and tax, dental all the little things can add up and stress an iva. I'm no good with the figures but you have good disposable income.As we have said take your time and talk to at least another couple of companys.

Ang

[sally.b]

Another question!!!.. If i sold my house and made £20 profit, who would get that money NR as i have mortgage through them or Black horse as its secured on my property?? How does it work?

[hara]

Ignore this company and do not sel house.Seek a good IP.

hara