some of debts are only 3 months old:

[worryhead]

Hello everyone

Well i am new to the IVA process and i have just signed up to an IVA with Kingsgate and waiting for my proposal. I have been quoted so far £277 a month payments and i paid an upfront fee of £450 as i have £26000. My main question is if anyone knows if the following companies are agreeing to the IVA as some of them are only 3 months old:
I owe:
Welcome finance £13000 since nov 07
Lloyds TSB £5000 since may 05
Aqua £1600 SInce about april 07
Vanquis £1000 Since about jan 07
Barcleycard £1200 since sept 07
Littlewoods Credit card £290 Nov 07
Littlewoods Cat £1600 since dec 07 jan 08
Littlewoods Direct £400 since Jan 08
Simply be £200 Since nov 07
Marshall Ward £400 since aug 07
Empire £190 since Jan 08

Do you think i stand a chance with them being so close, my IP reckons it should be ok but i guess i need some reassurance as i am a stress head who likes things sorted, i cancelled all my direct debits as instructed but have started getting calls already. I am not great at this as i suffer from depression a lot

[MelanieGiles]

Hi there and welcome to the forum

Most of those creditors tend to be supportive of IVAs so you should be OK on the day - and at the end of the day so long as your IP feels the IVA is worththy it should be accepted.

[andrewgoodman121]

I wouldn't worry with those creditors,
You haven't got Northern Rock Debts so i think you stand a very good chance.
Don't worry about the stopping of payments to creditors, i had my IVA Accepted 2 days ago and
it's normal to feel stressed as you feel as though your life is on hold until the IVA is accepted.
When i stopped paying my creditors when applying for an IVA i was well stressed and i thought that i was going to get all sorts of threatening reminders and plagued with harassing phonecalls.
BUT!! iT wasn't that bad at all and most of the creditors you owe money too are really willing to help you and support your IVA application.
Your DEBT is roughly the same amount of money as what i owed and i was Accepted 100% so i think you have more than an excellent chance of acceptance.
Good Luck.

[Adam Davies]

Hi
Is the £450 fee refundable if your IVA is not accepted ?
Regards

[worryhead]

Thank you for your replies, it makes me feel a little better No the £450 is not refundable but they said they can sort something else if the IVA fails. Just praying it does not, i am just waiting for my proposal to come through atm, should be here tomorrow, will keep you posted

[size5]

Is it me, or does anyone else feel that a £450 upfront fee when the D.I is £277 is a little puzzling?

[carlmcmullen]

£450 does seem a little strange - did you pay the upfront fee then get passed onto another company ?

And was it taken over two months ?

[worryhead]

The upfront fee was paid to churchwood, and they then said there sister company kingsgate deals with the IVA side of things, i paid it all the in one go. Is this not usually what you do? they said this payment is a fee for them then after that the fees come out of the monthly payments. Its the first i heard of an IVA so i thought this is what all companies do. Worrying now

[MelanieGiles]

It really depends upon exactly what the terms of the contract with you are? Did they give you a written agreement which clearly stated what the money was being paid for and whether it should be refunded in the event that an IVA was rejected?

[worryhead]

I have received nothing from them yet, just all been done over the phone so far, still waiting for my propasal so maybe its all in there. But i paid the £450 already.

[Jo Rolland]

With regards to the Welcome Loan taken out in November 2007, have you made any payments towards this loan and what was the loan for?

[worryhead]

i have paid nov, dec jan payments on this loan. i originally took out the loan in March for £4500, i then tried to get another to pay off all my credit cards but all they could do was pay off my original loan and gave me £1300 in cash, this put it up a lot due to intrest and payment protection. this only paid off one card and with me still owing to all the others i ended up using this extra cash for christmas. so it did not really help in the end. I should not have taken it but i was struggling and i just made my situation worse and further in debt its one of those things where you think you can manage but with Welcome's intrest rate i am paying back more then double then what i borrowed.

[size5]

I have to say that the Welcome debt worries me and unless you have had a material change in circumstances since you took the loan, loss of job, cut in hours etc, I cannot envisage Welcome being overly keen to help you out when they have a 50% share of the outstanding debt, they will argue that if your circumstances are the same then you knew you were in trouble when you took the loan, so why should they suffer? I also acknowledge that they advanced the money and took most of it for themselves by "rolling" your debt so they are not blameless.
I may be judging Welcome harshly, and for your sake hope that I am, so I sincerely wish you all the best.

[worryhead]

that is why i am so worried, i thought i could continue and i was ok at one point but i was paying my full wage on debts and just thought if i struggled for a few more years my Lloyds loan would be done then i can pay more on my cards as they all have a 39.9% APR. but now i have to pay my friend for living there as i have not paid her a thing in years, she has been fab, but now she can not support me and i dont want her to, i have felt so guilty that she took me in and helped me out. Also i had no life, i have not been out in years because i wanted to get myself clear but its just never ending. If an IVA was to fail do you think i could go Bankrupt as a last resort? I don't want to but dont see a way out. I eventually want my own place but i really cant afford to in the state im in. I never want to hear the word credit again

[Adam Davies]

Hi
You can declare bankruptcy if your IVA is declined or fails
Regards