Do I have a chance?

[helphope]

Hi there

I've been thinking about getting an IVA for a long time now, and sadly, due to an accident at work I've had to seriously think about it.

But I'm scared, I have £42,000 of debt and for the last year I have just stayed at the same balance every month (paid the minimum, interest is the same etc etc). I worry that because I don't look like i have done enough "good will" payments I will be refused.

But then 9 weeks ago I slipped at work on a step - and now I'm in statutory sick pay land. BUT because of my repayments and because the creditors are saying "I have to pay X amount" am panicing.

SO I have 2 questions - 1, have any of you been in my situation where you thought you would never get accepted and what happend?
and 2, If I win my court case, and am in an IVA agreement, will I have to hand over my compensation to the creditors?

Many thanks, Hope.

[600andy]

Hi there

I've been thinking about getting an IVA for a long time now, and sadly, due to an accident at work I've had to seriously think about it.

But I'm scared, I have £42,000 of debt and for the last year I have just stayed at the same balance every month (paid the minimum, interest is the same etc etc). I worry that because I don't look like i have done enough "good will" payments I will be refused.

But then 9 weeks ago I slipped at work on a step - and now I'm in statutory sick pay land. BUT because of my repayments and because the creditors are saying "I have to pay X amount" am panicing.

SO I have 2 questions - 1, have any of you been in my situation where you thought you would never get accepted and what happend?
and 2, If I win my court case, and am in an IVA agreement, will I have to hand over my compensation to the creditors?

Many thanks, Hope.

Hiya,

Same sort of debt as we had and yea, we thought we would be unsuccessful - and that all we had to look forward to was bankrupcy, however, we WERE successful and so could you be. I dont know all your circumstances but a chat with an IP will be able to give you an immediate likelihood of success. I am no expert, but generally speaking, yes, you would be required to part with some or all of your compensation to put toward your debt - if it was me, I would happily part with every penny as ideally, I would love to be able to repay what I owe in full - it was me that spent it after all!

Good luck, make that call but dont get too hung up on the compensation thing - it may take a long timne before you see anything and you could already be long into an IVA by then....

Andy

[helphope]

Thank you Andy.

You are 1000000% correct about the compensation - I think it's more the wanting a reward for the surgery and pain!! lol.

I have been speaking to Debt Free Direct, I'm not sure if I am better off going with one of the larger firms going going somewhere more independant. Who did you do yours with?

Thanks, Hope

[600andy]

Thank you Andy.

You are 1000000% correct about the compensation - I think it's more the wanting a reward for the surgery and pain!! lol.

I have been speaking to Debt Free Direct, I'm not sure if I am better off going with one of the larger firms going going somewhere more independant. Who did you do yours with?

Thanks, Hope

Underdstand about surgery and pain! LOL!

Not sure I can endorse or otherwise on this forum, but will anyway. I am with DAD and wished I had shopped around better.....if you have the time, have a long hard look, that said, you will find a lot of reputable and highly recommended IP's on this forum - try Meleanie - havent had any dealings with her myself, but she seems one seriously prefessional, helpful and genuine lady.....good luck!

[kallis3]

You do need to take advice, and as andy says, Melanie Giles, who posts on here, comes highly recommended. Her details can be found either at www.iva.com, or by clicking on the experts link on the left hand side of the page.

I hope you are fully recovered soon and back at work.

[Julie]

Hi there - "shop around" before making a decision which company to use. You'll be with them for at least 5 yrs unless you can offer a F&F so its important you make the right choice.

I certainly wish we had looked around more instead of being so grateful to anyone who would listen.

As for the compensation, there's been a few threads about this lately - I think if its a for personal injury, you get to keep it. Don't quote me on that though, have a look at previous threads, I'm sure you'll find you're answer.

xx

[helphope]

Thank you all for your help.

I was just honest with my boyfriend about it and he says he supports my decision and I've just emiled Melanie.

Wish me luck.
x

[Viki.W]

Good luck helphope. Please keep posting, let us know how it all goes. X

[aguise]

Hi there helphope.
I just wanted to say hi and welcome to the forum.
All the best. Melanie and her team will give you great advice on all the solutions suited to your situation. Keep posting and let us know how things are going.

Ang x

[MelanieGiles]

If your claim is for personal injury, then it ought to be exempt from the IVA, but if it is compensation for loss of earnings this may have to be treated as a windfall.

[debtmountain]

Hi helphope,

Good Luck from me too and please keep posting to let us know how you get on.[:)]

xx

[helphope]

If your claim is for personal injury, then it ought to be exempt from the IVA, but if it is compensation for loss of earnings this may have to be treated as a windfall.

Hi Melanie - thank you for this. Out of interest, is a windfall seen as something seperate to the IVA payments? ie. if you have an amount of cash that gets put in to your repayments which is seperate to the plan, will your current payment plan be adjusted to reflect this?

Best, Hope x

[Lisa2009]

If you recieve a windfall, it would need to be handed over for the benefit of your creditors and you would still pay the same each month. It would just mean your creditors would get a slightly higher return.

[MelanieGiles]

Yes - the windfall actually improves the position for creditors, on top of the contributions you have pledged to pay.

[plasticdaft]

If your claim is for personal injury, then it ought to be exempt from the IVA, but if it is compensation for loss of earnings this may have to be treated as a windfall.

Mel,when you say ought to be exempt do you mean that this may depend on which IP/firm you are using??