Hi
Both an IVA and a DMP will affect your credit record severely and IPs are there to propose and supervise an IVA, if that is the option that you choose. I am not aware of any company where your first call will be dealt with by an insolvency practitioner, most are dealt with by trained staff who should be there to talk through all options with you.
Your first job is to work out how much you need to live a reasonable life and to pay your secured debts and all utility bills etc.
The money left can then be used to pay your unsecured debts, either by an IVA or a debt management plan.
You need to factor in the fact that you may be able to secure new tenants and if you can do this and possible move your mortgage onto interest only you may not need a solution.
Speak with several experts/companies and take your time before making a decision.
Regards
Hi
There has to be a compromise I'm afraid if you are expecting creditors to write off a chunk of debt.
All the above are possible and far more enjoyable when you use money that you have saved from your allowances and/or your share of any overtime worked
Regards
As a single person you are allowed up to £200ish per month for housekeeping. I eat crap and save the rest for a social life. You can't expect the creditors to allow luxuries while writing off part of your debt...they would in effect be funding your drinks and meals and weekends away. An iva is a good way to learn how to live with a budget. Don't let anything stop you getting all the information and making an informed decision.
My mortgage is with northern rock so im totally screwed there, and it comes to the end of my fixed rate next year, im not sure what will happen then. I believe i will go onto there std variable rate.
As for overtime, im on a fixed salary so thats out and I have day to day expenses that I need to pay out of my own pocket. Tolls, parking tickets etc etc.
Just done the CCCS thing and it says Bankruptcy is my option lol,
Lesley gives very good advice. I spoke with several firms - phoning each and allow yourself up to 45 mins for each call as they need to go through your income and expenditure in detail.
You have options of BR, IVA or DMP and the pro's and cons will be outlined and discussed with you. Remember an IVA is an INDIVIDUAL arrangement and therefore your payments (surplus after I & E) - will be tailored to your financial situation.
NO, it doesn't mean kiss goodbye to a drink in the local or a weekend away in London but it will mean pain and difficult decisions. That's the reality of the situation whatever option you choose.
My circumstances were over £33k credit card debt - I was robbing Peter to pay Paul. I was not coping to meet my commitments. An IVA has allowed me to clear a substantial amount of my debt - all interest and charges frozen and in 5 years time I will see the light.
To be honest I am 3 months in and the adjustment is not proving easy. I cannot simply flash the plastic if I am short at the end of the month and every month so far I have had less than a few pence in my account. I have had to cover some direct debits I forgot were coming out and borrowed from a friend to cover until I was paid. It's hell sometime but I am not further in debt and sinking like I was last year. I need to learn to budget and better but I am determined to do just that. The old phrase "we spend what we earn" is so true.
My advice to you is think of changing your bank account to a bank you have no debt with before your credit file is affected. Start to pay your salary into this new account in preparation. Take advice from several companies. Don't rush into anything. Any questions - post them on here. Good luck.
"all IP's are out to make money out of my downfall and will only give one sided opinions"
It is sad that you have formed this view of members of my profession, who are currently working very hard on behalf of clients to make arrangements with their creditors in everybody's best interests. If this view has come from recent media coverage, then once again it is sad that journalists always like to report the bad stuff without presenting a balanced view.
Having the privilege of debt-write off usually comes at some sacrifice, and if you feel that you cannot change your lifestyle - then a debt management plan is probably the best option where you may be able to be more flexible with the amount you pay on a monthly basis, but run the risk that interest will continue to be charged if you are paying more than 1% of the outstanding balances and therefore it could take a long time to repay the debts.
You seem to suggest that this may be a temporary problem only, so DMP seems to be the most sensible scenario.
welch9-50% of my debt was with northern rock and they accepted the proposals.
If you feel you couldnt sacrifice the luxuuries in life then I dont think an iva would work for you.We dont live in poverty-in fact most of us probably feel better off in an iva because we know whats coming in and whats going out each month.
I did find it extremely hard to budget for the first couple of months as I had been used to depending on the plastic when the money was drying up each month.
As you are single and enjoy the nightlife(god,those were the days !!!!) you may find - as melanie has said a dmp might be more suitable.
Be aware though that if you want this long term you may find that interest and charges are not frozen-we went on one for 7 months prior to the iva and not one creditor froze anything.Northern rock in particular wouldnt entertain this.
I dont have any experience of bankruptcy as I love my home to much and put too much money into it to lose it now.
Whatever you decide-take your time to speak to a few companies about your situation-think long and hard about your options before deciding which to go for.
Good luck in whatever you decide !!!
full and final accepted January 2015
iva agreed; August 2010
iva would have completed; August 2017
extra year thank's to NRAM
Melanie yes I do believe this will be a temporey problem, as I have a loan due to be paid off next year this will free up alot of money. Also I expect to inherit 20k+ within the next couple of years.
My fear is if I go in to an IVA and my circumstances suddenly change, any more I am given etc will go straight to my IVA. Whereas if I struggle on by as is and things change I can manage them myself.
Someone mentioned borrowing from friends etc just to cover outgongs etc while in an IVA. I will never ever go to friends to ask for money.
I think that a short term DMP may be the best for you as if you have an inheritance during an IVA then some, if not all, would need to be paid across.
Perhaps chat to one or two companies and talk things through in more detail with them. It will probably help you make up your mind.
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
