i have debts with 4 companys adding up to 32,000.

[itsnotmyfaultt]

i have debts with 4 companys adding up to 32,000. i contacted baines and ernst, and they have said i should qualify for an iva. they took all my details and said my monthly payment would be 265. they said they couldnt go any further until i had made a payment of 265 for setup costs. is this right. also do i have to stop paying my creditors the minimum payment whilst awaiting my iva, as i dont want it to not get accepted and the ruin my chances of me getting a consolidation loan, and will thee iva affect my credit rating if the creditors dont accept it, cheers pete

[luluj]

Welcome..firstly Baines & ernst are well known and like other IP firms they ask for the first months payment upfront.
Whilst waiting for your IVA proposal to be approved I would suggest that you do not make further payments to your creditors - if you do then make then "token" payments only.
The money you save can go towards the first payment ....or put it away in your contingency fund as whilst in an IVA your budget on occasions may benefit from a little extra !
If you are unsure re B&E then I suggest you consult a couple of other IP firms for information.
Once your proposal is submitted it will take about 4 weeks to be approved - it is a nervous time and you will get creditor phonecalls...however they will be written to by B&E so should know what is happening.
If you are already in that amount of debt - it would be very unlikely that you would be able to get a consolidation loan...so why pay your creditors?

[plasticdaft]

Consolidation loans very rarely work,trust me I have been there and tried and it made the debt hole bigger.

Make sure you are happy with your income and expenditure figures before you go ahead with anything coz you have to stick to them for a while.

The IVA WILL totally ruin you credit rating for 6 years from the date the IVA is given the go ahead(I hope B&E poitned this out to you)

Good luck and keep posting the questions,we are all here to help.

Paul

[peterpan]

the reason i want to keep paying my debt is that i dont want creditors ringing the house as i live with my parents and partner and dont want them to know about any of this. how can i stop these calls? also i pay money into my partners account each month for her living expenses and for the kids. can i still do this. will she be affected and can they view her bank. what if she starts working will that affect my payments. i really dont want her to know about any of this. thanks for your help.

[plasticdaft]

I think it would be very hard to keep everything from those around you and if you are struggling to pay things then get help now,dont wait becasue of shame because your debts wont go away by themselves.
If you were to enter an IVA you and your partners income and expenditure would be looked at to ensure she is paying her share of the household bills,and given that you are paying her an allowance then chances are she isnt actually paying towards the runnings costs of the house.

Can you explain more about your situation?? I assume you have debts that are getting out of control and want to try and sort them out? What debts do you have,any equity in property or other assets(shares,property,isa's etc)

[peterpan]

i have a 20k loan, 5k overdraft, 7k on loans. i have no equity in my house, which is rented out. i now live with my parents who would probably throw me out if they found out about this, and i believe my partner would leave me as i have been in debt before, luckily last time my parents sorted me out. but that wont be an option this time. i really cant have them find out about this

[peterpan]

alo if i try to apply for a loan now to settle all the debt would this affect my iva

[plasticdaft]

Given your history of money management would it be fair to say that if you got a consolidation loan you would carry on getting credit and make the problem worse?? ( I see myself in you,and its not easy to do it but you have to be honest with yourself)
Applying for a loan at the same time as looking into an IVA is not a good situation. I think you have to decide whats best,but if you are to go into an IVA it will be very hard to keep it from those you live with(creditors phone calls will continue until approval).
Remember if you do go for the consolidation loan then after taking it want to go for an IVA you wouldnt have enough creditors.
Take time to think about whats best. It isnt going to be easy whatever you do,and the thought of admitting to your loved ones that you have problems is clearly something you arent comfortable with,which only makes things harder. Would they really all turn against you so,if you had to admit you had debts you cant handle again??

[peterpan]

telling them is not a risk i am willing to take, especially as most of the debts are due to gambling. what i really want to know if i tried to apply for a loan now would this affect my iva if i wasnt approved. if i was approved i feel i can pay off the debts without it getting any worse. i would like to pay off all my debt as i feel its my fault and dont see why i should be bailed out. i have got a few loan quotes, without putting and of my personal details in already i and know that i could afford the payments, as they are far less than what i pa now. should i apply and see if they accept me??? thanks for your help.

[peterpan]

if the creditors do phone the house and im not in is there any chance that they will speak to my parents or partner about my problems, and what are the likely to say to them. and is there any chance that they will come to the house. how much contact should i expect from the creditors, thanks again

[luluj]

if your creditors phone when you are not in they should not speak with your relatives ...if they do then they are breaking the rules of the data protection act.
As you have said most of this debt is due to gambling....how do you know if you take a consolidation loan out that you will not go straight back to the gambling house....take some professional help to help kick the habbit before it ruins your life forever.

[plasticdaft]

Yes they may call to your house and yes they may let slip when they phone what the call is about,data protection or not.
I am really sorry for the situation you are in,but you have to make sure that you are in control of things before you go for the loan/IVA,and given your gambling addiction(strong word but if its causing debts to build up then strong words are required),I am not sure how much control you have.
Have you ever contacted a support group?? Given what you have to lose if your partner and family finds out surely you would do anything to sort yourself out,I think if you get a consolidation loan this will just mask your problems for a while longer. Professional help with your gambling and a mature approach to sorting out an IVA are in my opinion the way forward. If you love you family you will act to sort out your gambling.

Paul

[peterpan]

i have taken counceling on gambling, this will not happen again so as far as i am concerned that is not an issue anymore. all i want in one monthly payment that will end all of this. all i need to know right now is if i apply for the consolidation loan now would i get my money back from baines and ernst, and if the loan is still unsuccessful would they continue with my iva. cheers

[plasticdaft]

If you have told B&E that you want to do an IVA and they found out you had applied for a loan I would imagine that they wouldnt be very happy,as you have tried to gain more credit.
Dont do both,do one or the other. If you go for the IVA forget the loan,if you go for the loan forget the IVA,its a choice of the 2,you cant half do both.

[peterpan]

i just feel that i have rushed into the iva without looking at other ways to solve my problems. when i was on the phone to the iva company i felt they were really helpful, but after thinking about it for a few days i feel that i was more been sold a product rather than them doing whats right for me. i think i need to speak to them again tommorrow and discuss what other options are available.