I would really appreciate some advice, we entered into an iva in March 2008 which was eventually taken over by Grant Thornton. debts were the following: Egg (which is now showing as Barclaycard Masterloan) £4203, HSBC joint account £2613.68. HSBC loan £11,473.56. HSBC credit card £5042.09 and max recovery £610.08. Debts totalling £23,942.41. The approved dividend at first MOC was £59.55p in £. For first 3 years we did well at maintaining our payment but started missing to which they upped our future payments going forward. Stupidly we missed more payments and they added time to the end. Then my husbands income dropped & they proposed a variation which was subsequently refused & the iva was terminated. We had at this point paid in £18,474.97. The funds that have been distributed are £10,534.77 the rest has been kept as fees. Total dividends rate to date are 44p in £. We now have no idea what to do. We have gone to a new company to propose a new iva which is in early stages (we have just submitted payslips etc) but the new iva is saying they can add all interest now and we can be back to square one. I rang a debt advice line & they told me to ring all creditors & find out how much is left that we owe now funds have been distributed as it may not be that bad. I rang barclaycard whose ref number is 32 digits & they can find the card for the first 16 digits and the balance is £0 the HSBC joint account had been passed to metropolitan and overpaid and they owe us £592.59 which they are sending to me. The HSBC loan is now £6047.01 and held by metropolitan and the HSBC credit card I was told was also held by metropolitan but they have no record? Max recovery is now £376.15. My question is how on earth do I find the other 2 debts I was told to go on noddle but there is no record on there! Also what would you advise I do should I enter into the new iva for the remaining debt? I'm worried if I don't the remaining debts will have interest added on and get bigger again?
Hi Foggy thanks for your response.
Bankruptcy isn't an option for us as I work for a company where they cannot employ ppl that have gone bankrupt.
Also I feel that as we are almost there we may as well continue and pay our debts the right way as otherwise the last 6 years stress would have been for nothing, we may as well have gone bankrupt in the beginning. Also I have been told that bankruptcy wouldn't be an option for us as we have surplus income, the new iva ppl that I was speaking to Ramsey lomax but then when the IP called me he said you have been passed to us by Ramsey lomax and they work for Berry and Cooper.
What type of work do you do,as an IVA is also a type of bankruptcy a controlled bankruptcy, and who told you that you could not go bankrupt if you have surplus income, if that were the case Income Payments Orders would not exist finally the 1st IVA failed and cost you dearly almost eight thousand pounds in fees is there a good reason the next IVA will be successful
Hi THe Major
Thank you for your response, I work for provident personal credit, when I started working for them I had to show them my bank statements so they could see my IVA being paid every month as a condition I got the job. I also have loan with provident and the new IP have put in new iva proposal that I should up my payment once the loan with provident has finished. They have said they will get my payment as low as possible for me, in that case there's no reason the new iva can't complete successfully but I have questions with this as well ie. what are the chances of the remaining creditors accepting a new iva seeing as tho they wouldn't accept the variation? But now they have been paid out a big sum and the debt is lower is there a better chance they will agree the lower amount? Also say for example they say my payment should be £300 per month I'm then going to pay back more than the remaining debt we have? Thank you again for any advice
OK -- if it was your new company telling you that you cannot go bankrupt as you have surplus income, I would worry that they didn't know their job, which would cast doubt on everything else they are saying.
I am also doubtful about the legality of leaving the Provident loan out of an IVA. All unsecured debt should be included.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
You will have to see what is on offer on the table, as long as you do not start paying out until you are happy with what you are doing and the creditors are going to play ball, you should be OK
Thank you Foggy
It wasn't the new iva ppl that told us that it was something I read, I was under the impression your bank is taken over, you are given an amount to live on then all surplus income is taken.
Although I haven't really looked at bankruptcy in detail just because I don't want to lose my job.
Also I think the new iva ppl have left the provident loan out as if I default on it they would let me go therefore the amount left to offer creditors would decrease.
Thank you The Major I think it maybe the only option, I am just really worried about entering another iva, Grant
Thornton were an absolute waste of time, no support, no guidance at failure and the have now gained over 8k in fees plus the ppi which is still pending. As you say though as long as our new iva payments are affordable it should be ok and they can't ask for a silly amount can they as the level of debt isn't that high now after the distributions? I don't know what other alternative is, we don't own our own house and our car is an old scenic!
We enjoy the possibly easiest bankruptcy regime in the world, certainly in the EEC which is why EEC nationals come here for six months to take advantage of our bankruptcy laws. In your IVA you have to complete the arrangement to be free of your debt, in bankruptcy you do not you are discharged in 12 months whether or not you can or cannot make any payments, and your bank account is taken over by no-one. If you have surplus income then you can make an agreement to pay this for three years, the same way as you paid your IVA from you to them. If payments become unaffordable as they were in your last IVA then the payments cease you are still bankrupt you have still dealt with your debt
After your variation was refused, did GT not offer other routes to help as they could have gone to your creditors with a payments made to date + any PPI to come offer, or even reduced your payments by 15% to make them more affordable. I feel you shouldn't have to do another 5/ 6 years when you have already paid 44p/£ and other peoples IVA are closed for a lot lower rates than that plus PPI is still to be added in.
If life is what you make it, I must have been in a strange mood when I made mine
Hiya thank you for the replies, I suppose we will just see what this new iva uncovers and what the proposed payments are before we decide anything, it's crazy GT didn't seem like they wanted anything to do with it, in fact I feel they wanted it to fail as we could afford more than £300 per month but they said let's test the waters with a variation for £300 first of all I agreed and then it failed full stop! I didn't feel I could say a lot due to the arrears on it. I have heard of some ppl that are in Ivas only achieving 9p in the £! When I asked GT where we go from here they said well you can propose another or go bankrupt nothing else was said. I even rang them Friday and said one of the creditors has been overpaid can you get it back and they said you have been terminated so that's it now
GT were my firm (eventually) and I must say were great when I hit rocky waters. However, this is one of the problems with the big firms where you end up as an anonymous grain of sand on an awfully big beach. Let us hope for a better "second time around" for you.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thank you Foggy!
I haven't heard anything from the new iva for about a week now in hoping that ok the next couple of days I hear about a new proposal.
Just wondering does anybody know anything about DROs and do you think I would qualify having paid back 44p in £? Also is it true that you need to have less than £50 per month DI to qualify?
Don't be too hard on the iva firm as
they try to accommodate both sides in sometimes in impossible situations.
A minimum dividend, also on mine iva years ago is not negotiable.
Iva proposals take 4 to 6 weeks to complete and proposed so go with the tide.Let your IP sort those backdated charges and just relax.
Last edited by TzeKin on Tue Aug 26, 2014 4:22 pm, edited 1 time in total.
