Starting

[Simbel]

I've been reading this forum very carefully and yesterday finally afters years of worry and stress and not sleeping my husband and me finally did what I suppose we should have done ages ago - we telephoned a debt company for help. The gentleman on the other end of the line was very nice and not at all judgemental, he advised that we should go for an IVA as we have a mortgage therefore some assets. We have in total approximately £131K of debt (this is the first time it was all added up and I was mortified, guilty and feel like just throwing myself in a river somewhere) The gentleman is sending an IVA pack in the post to us and we are going to fill this in and it will get collected soon. I have two questions - my property is worth between £240 - £260K, I owe £238k mortgage, actually as things are presently in the housing market we most probably are in negative equity. Also we had a very old car which we exchanged for a new one (my mother-in-law paid cash for half of this) we used credit on a card for the rest with the intention of paying back everything because up to this week we had enough credit on cards to juggle around, however, a couple of credit companies suddenly took our credit away which meant we found ourselves in difficulty. I know that part of our problem was obviously stupidity, ignorance and always borrowing from Peter to pay Paul etc.

The question is what are our chances of the Creditors actually accepting our IVA (it seems that we will have £900 spare to pay them per month) and even though we need our car to travel to work (we live approximately 50 miles from work and school and the car ferrys the whole family every day) can they take the car away - also because we used credit to pay for just under half for the car could they say no to the IVA because they may think we did this intentionally. Now that we have faced our problem head on I must out of my mind with worry with these questions - I am racked with guilt and feel terrible and almost like a criminal. I don't want to get off from paying the people I owe, thats my last intention - I just need time in which to pay them. Please can anyone help me with the above. Many thanks.

[size5]

Hello and welcome along.

It is very unlikely that creditors would take a dim view of an IVA proposal given the circumstances you describe. However, and I advise everyone to do this, even my own clients, you would be unwise to "get into bed" with the first person you speak to, if you will pardon the expression. I would encourage you to speak to at least 2 or 3 firms before you go forward. It is all too easy to forget some material facts the first time that you speak to someone, so taking a second or 3rd opinion cannot harm you. I am also, personally, very wary of firms that send couriers out to pick up documents, it is a bit pushy for my tastes.

Although an IVA MAY be your best option, or one that you are keen on, you should be allowed to have a period of reflection to make sure that you are happy with your decision, after all it is likely that you will be with your chosen provider for 5 or maybe 6 years.

Accordingly, vist www.iva.com have a look around there, read reviews etc. Take time to read reviews as well on the firm that you have already spoken to.

Other than that, taking the first step IS the hardest thing so well done to you for facing up to it. Do keep posting and let us know how you get on.

Regards.

[flumpy dog]

hey simbel-size 5 is right. i would take his advice ansd shop around. iva.com has loads of companies that you can review and talk to free of cost to see who you feel comfy with after all the majority of ivas are 5 years so you need someone wo you will comfy communicating with for this length of time-why not ? it will cost nothing and give you peace of mind. also DO NOT feel like a criminal ! like us all we've either lived beyond our means overspent or had a crisis which has left us in our current states but you are most certainly not along and i for one am very proud of you for having the courage to post what you have it is really a brave thing to do and that is meant in a good way x
you are making headway in sorting it out but im afraid youre going to have so many lovelies on here trying to help you youre going to end up very popular[:)]
seriously start tilting your head up ok its not going to be easy but progress is being made and your a good person-dont let the nasty negative thoughts bog you down ok ?
take care and keep posting ! luv FD XX

[Michael Peoples]

I agree that an IVA sounds like a good option for you and your creditors and I also agree that your vehicle should not be at risk. Even if one creditor did reject you require 75% of the amount of money that votes to vote in favour for it to be legally binding on the rest so the decision rests with all your creditors.

Hopefully it works out and as the others say you can always seek a second or third opinion if you have any doubts at all. Best of luck with the proposal.

[Shining]

Please do take a look at www.iva.com to compare a couple of companies, I would never go with the first company you contact purely due to other posters experiences of doing this. You have to be totally comfortable with your chosen IP as 5-6 years is a long time to be unhappy if you're not.

The IP's who post on here come highly recommended and even though one company is sending you a pack doesn't mean you can't take some Free, Impartial advice from a couple of others. All the best in your journey.

[kallis3]

I totally agree - give several companies a ring. You have to be happy with the company you use. The advice is free.

[MelanieGiles]

An IVA seems a great idea for you to deal with your currently unaffordable debts - but there are other options which you may find more suitable. Do make sure you get rounded advise on all options before you make your final decision - and as the others have already mentioned get as much advice and support as you can muster - it is all free and you will build up a better picture by speaking to a couple of professionals.

[Pennyless]

Simbel just to say good luck and your not alone......every "feeling" you have described is echoed so many times on these forums.

As others have said contact 2 or 3 companies and see what options are available. I can personally vouch for the outstanding service and assistance I have received from Melanie Giles and would certainly add her Company to one of those that you should contact...along with Size5 who will also explain things clearly and hopefully help to get things clear in your own mind.

In any event just remember your not alone and you will find this forum will help you on your journey to becoming debt free.

[Debtwitch]

Hi Simbel

Speak to 1 or 2 companies as recommended here to discuss what is right for you, but it sounds like you have already started to resolve matters.

Very best of luck.

[Shining]

do let us know how you get on Simbel as we're all here to offer advise and support and you will be doing the same to others.

[Simbel]

Thanks to everyone for replying to my post, and thank you for all your support. I will do as everyone suggests and contact a couple more companies - in the meantime what do I do about this chap that is suppose to be coming round to pick up all the documentation on Saturday. By the way I haven't received the pack yet and I don't think I could get it ready by this Saturday in any case.

The chap I spoke to also opened up an account for me with OneCardAccount - I don't know anything about this except that I now have an account number and sort code in order to transfer mortgage, salaries and utility dd's into it. I do all my banking at the moment with Natwest and this is a joint account. I also have a basic account in my name only with RBS could I not just add my husband to this account and use this one instead of OneCardAccount? would they do a credit check on my husband in order to add him to the account? Sorry for asking all these questions but at the moment I am so confused. Once again thank you to everyone for your support.

[Michael Peoples]

RBS and NatWest are the same company and if you have debts to one it would be prudent to open a new account. It is not necessary to open a fee charging account particularly if your credit file is not badly impaired.

Try to open a new account online with a bank to whom you owe no money and if that fails the Co-op and Yorkshire banks have good reputations and charge no fees. Creidt checks are not an issue as many banks have accounts for people who are bankrupt but the facilities are restricted.

Ring whoever sent the pack and delay the collection which is probably common due to the post strike. Speak to other providers if not 100% happy and hopefully you can reach the right solution for you and your family.

[Simbel]

Thanks - I will do that now, the chap I spoke to also said that OneCardAccount is part of Natwest - is that not right then?

[kallis3]

I wouldn't be happy at someone else opening an account for me, especially a fee paying one. You will be able to get a free account with Co-op who come highly recommended by posters on here. You can open a basic Cashminder Account over the phone or in a branch. As Michael says - Yorkshire is also another good one and they are both IVA friendly,

Give the initial company a ring to delay them - you can truthfully say that you haven't received the pack yet. Phone a couple more companies, the ones who post on here come recommended and you can find their contact details under the expert link on the left hand side of the page.

[Michael Peoples]

It could be the One Account which is part of the RBS group. However, this is an account secured on your property with an agreed overdraft limit and it would be difficult to open one quickly without a valuation and mortgage offer. I have never heard of the account you quoted but is there a monthly fee for operating it?