Having acknowledged I have a problem I have sought advice from 2 sources.
A Debt Pracitioner had a 10 minute chat and sent me some IVA forms.
The CCCS gave me a 1 hour plus telephone interview and recommended a debt management programme to avoid securing debt against my home. They have sent me the forms and given me a series of instructions.
I am inclined to go with the CCCS but am worried that I may end up with 1 or more CCJ's. How likely is it that a ccj will result? My debt is split over 6 credit cards and a personal loan.I have had discussions with my employer who seem ok with me having an IVA but are less clear about the implications of a CCJ. I work in an advisory role in an FSA regulated job.And the credit crunch has halved my income. I am starting a second job (part time) to ease the cash flow a bit.
I have unsecured debt about equal to the equity in my house- for now, who knows where house prices will bottom out!
Last edited by robert25 on Mon Nov 24, 2008 7:51 am, edited 1 time in total.
I get knocked down
But I get up again
You're never going to keep me down
My advice is to log onto IVA.com and look up the reviews for a few IP's and contact them for a second opinion as to the best solution for you.
A DMP will give you no protection from your creditos with regard to your home. Creditors may well take out charges for their debts against your property. (something they cannot do in an IVA)
Is your property jointly or solely owned? Also get yourself an up to date market valuation to chesk the value at the moment - the equity situation may have great bearing on the options you may have available to you
Hi Robert. Melanie is totally correct and you should take another opinion. The person who sent the IVA forms sounds like someone in a call centre with little or no experience of debts. A ten minute chat is not long enough so speak to an IP firm before going any further as most offer free no obligation consultations.
Definitly ring up and get another opinion. There are a lot of IP's and debt advisors who post on here who would be more than happy to talk to you.
Either visit www.iva.com or check out the experts page.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I'd be interested to know how much your unsecured debts total up to, and also how much equity you have in your house.
Without knowing this it seems difficult to offer an opinion on which option would be best for you.
In a DMP your creditors may try to secure debts upon your home depending upon the circumstances (a good DMP company will be able to give you an opinion on the likelihood based on your circumstances).
In an IVA it's very likely that you will have to agree in advance to some of your unsecured debts being secured upon your home if it is possible in the future.
Last edited by Andrew Graveson on Mon Nov 24, 2008 1:34 pm, edited 1 time in total.
Andrew Graveson
Bright Oak Ltd
UK Debt Management Company
Website: www.brightoak.co.uk
I could'nt get an IVA , so went [with advice] for a DMP , although you dont get all the legal backup for a DMP , mine seems to be working ok , got a statement from Barclaycard [owed 8k] this morning and they have agreed to DMP and frozen the interest and charges for 6 months [at the moment]..........Just need the other creditors to follow suit now [:)].........and i'm finding everytime i phone my IP they are very friendly and explain everything in plain idiot proof English [:D]..........
The main thing is to ring around and collate all the answers you get, and go with what you think is best,
We were very lucky when we had a DMP. All of our creditors froze interest and stopped charges and accepted what we were paying (some grumbled about it, but accepted anyway). They just used to ring every six months, and if nothing had changed, we just carried on.
Any problems, I referred them to the company we were dealing with for them to sort it out.
Not everyone is that lucky though.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
In answer to Andrew's question I (alone) have about £48k spread over 7 cards (2 barclaycards, 2 MBNA, skycard, Egg, marbles) and my wife and I have a joint Alliance and Leicester loan for £8,000.
We have a joint £126,000 mortgage and the house was valued 2 weeks ago at £180,000 - we expected more.
When I did a budget plan with the Consumer Credit Counselling Service we had £400 per month "spare".
What do you reckon. IVA or DMP???
Thanks
Last edited by robert25 on Mon Nov 24, 2008 3:02 pm, edited 1 time in total.
I get knocked down
But I get up again
You're never going to keep me down
Your case seems to be a straightforward IVA for you alone. Your wife has only one debt to service which she could do with her surplus. The CCCS have estimated a surplus of £400 which would be split between you and your wife depending on who earns what.
You do not have equity equal to debt as there is £54k of equity jointly owned whereas you owe £54k yourself when the joint debt is included. Your wife only has a liability of £6k so is not insolvent given that she has £27k of equity.
An IVA seems a very reasonable option given a DMP would take over eleven years even if interest was suspended,charges stopped and you used a non fee chrging company. I would certainly advise speaking to an IP.
From the information you have presented it would seem that you might be able to do an IVA but there would be complications for your wife who does not appear to be insolvent (her share of the equity is greater than her unsecured debt).
Given that it would seem you can make a substantial monthly contribution and would be likely to have to release a significant amount of equity towards the end of your IVA you could well end up paying more than your unsecured debt total by doing an IVA.
I notice Michael mentions that an DMP could take 11 years which is true. Due to the equity release element of an IVA, and how it might affect you, it's possible that you could feel the lingering repayment effects of an IVA for much more than 11 years.
It's a difficult one to weigh up.
Andrew Graveson
Bright Oak Ltd
UK Debt Management Company
Website: www.brightoak.co.uk
Actually to correct the above I was at work and working from bad memory! I'm home now and on checking my card debt is £49,250.
My wife and I are seriously considering selling up and renting when the market picks up to pay off as much as we can, and then to rent. We may even be able to clear it all if prices don't go down more than the reduction in debt.I have to say she has been an absolute brick and I'm sorry to read on the forum that other people find the stress causes strains on relationships.
Does that throw any different light on our decision?
I had almost made up my mind to do a DMP but Im totally confused now.
I have advised all my creditors that I would be making token payments until a plan could be finalised and have the notification of debt management plan forms and token cheques filled in and ready to post.
Last edited by robert25 on Mon Nov 24, 2008 4:54 pm, edited 1 time in total.
I get knocked down
But I get up again
You're never going to keep me down
I would certainly get another opinion over the phone from one the experts who post on here. You can find their details either at www.iva.com or on the experts page on this site.
At least you would know which option was right for you.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
If you are prepared to sell the property to repay debts then you should be aware that you actually only own half the equity. Depending on the income and expenditure it may be possible to offer your £27k equity as a one off IVA and your wife could clear her liability to the joint debt and use the remainder of her equity to start afresh. Alternatively, it may be possible to raise your share of the equity by way of a remortgage to offer as a full and final IVA, although the rates may be high for the first couple of years.
As Kallis has said, it is worth speaking to one of the IPs on this forum. Paying token payments to creditors at this time is a good idea as it buys time until you make your mind up but also shows intent.
Hi
The security that an IVA would bring is certainly worth a second/ third opinion.
Do not agree to anything until you are sure of the route that you should take.
Regards
I am concious of urgency but want to make sure I get it right.
I have contacted Michael Peoples' team and they have emailed some data capture forms which I have just faxed back to them, with some additional info and queries which haven't been brought out here for the sake of simplicity.
Very efficient of them.They seem like a good outfit. I did check them out on IVA.com as suggested. Thanks for that.
I liked the look of his idea and for no other reason decided to contact them. Thanks to the other IP's who took the time to reply I appreciate your help.
I get knocked down
But I get up again
You're never going to keep me down
