www.iva.co.uk

Hi All,

New to this forum so please bear with me! After realizing that i was in a ever spiralling debt cycle, i eventually took my head out of the sand and enquired about an I.V.A. Unfortunately i was deemed to not have enough dissposable income left for this purpose and was guided to the D.M.P route.

Have now been in a DMP with CCCS for nearly a year, and have been lucky enough that at the present time all creditors have stopped interest charges, although i do understand that this may change.

I currently pay £284 on debts of £64000, but these payments will rise to £484 once my car HP ends in approx 16 months time.

I am due in court on 6th April to defend a charging order and would like to ask the forum if it is possible to ask the court for my payments to remain the same as my DMP, which is £14.66 on a debt of £3642.

Also i wish to write to the court beforehand explaining my situation but am not quite sure as to who to address the letter?

Thanks in anticipation

Why not take a look at www.iva.com to get a list of companies and some reviews and talk to 2 or 3 IP's in respect of your situation. Your disposable income could be enough for an IVA and with the car HP ending this increase in payment could be factored in to increase the dividend to creditors. I think Clear Debt are one company who works with lower income IVA's.

Do wait around for a professional to clarify all this and to advise on the charging order as I do not know enough about them to comment.

You've found the right place for advice though and welcome to the forum.

I have no idea why you were advised that your disposable income at £285 was too low for an IVA. So far as I am aware this would, and will, work perfectly well. Was this advice given to you by CCCS?

I suggest that you speak to an insolvency practitioner about proposing an IVA which will deal with the charging order as a matter of course. The main problem with a DMP is that they do not stop legal actions like this, which gives an IVA the edge as the debt solution of choice for people like yourself. Take action soon as the IP will need time to prepare an IVA proposal for you.

An IP can, if necessary, look at an Interim Order whilst preparing an IVA for you. I would not like to comment as to the advice you were given as there are many reasons why this may have been, and of course we know actually very little about the specifics, other than what has been posted here, but it is good, at least, that the interest and charges have been stopped.

As regards IVA, there is a case, for example, for starting at a lower figure and increasing that when the car HP finishes, but the devil is, of course, in the detail. There may be, or may have been, too much equity in the property to look at IVA, and you haven't mentioned the equity issue to go any further with that point.

Accordingly, you should take time to speak to at least 2 or 3 firms directly and specifically about an IVA and then go from there, so a visit to www.iva.com looks in order.

Good luck and regards.

I agree with Melanie since I am with the CCCS and my iva was accepted on £228 disposable income and no equity at the time of acceptance.

Hi All

Thank you for your comments, on recollection i think i may not have been advised an IVA due to the equity in my property. Briefly:

House valuation; 130000 - 140000 (would be lucky to get 140000 in todays market)!

Mortgage 55000
Secured Debt 35000

Total secured debts; 900000
Unsecured debt; 640000

Hope this can shed some light on my predicament.

I don't see why you shouldn't try another company.

We had, and still have, equity in our house and we had no problem.

Give another couple of companies a ring via the link that Size5 posted.

It certainly won't hurt.

Looks like there is some equity there, and you are correct inasmuch as it is highly likely that the value of that equity has been eroded over the last year or two as well.

As Kallis says, 2 or 3 other opinions can't hurt, and whilst it may mean that you have to realise some of that equity later on (if circumstances and market conditions at the time allow) then at least in the meantime you will have the legal protection of an IVA if that is indeed the right way forward.

Regards.

I have to agree that an IVA is certainly an option. Given that creditors are starting to charge their debts against your property it may be worth moving fast or your equity will become eroded.

This definately looks IVA territory to me - a forced sale valuation of your property would probably reduce the value further by 10% to 15%.

Hi

Why not just accept the charging order then you wont have to pay anything towards this debt. You will only have to pay the debt if you sell your property. A judge will not force you to sell the property over such a small amount.

Personally, I wouldn't want a charging order hanging over my head if I could help it.

You may well have to come to an arrangement for ongoing payments to the charging order creditor - to suggest otherwise is not correct.

kallis3 wrote:

Personally, I wouldn't want a charging order hanging over my head if I could help it.

It does not hang over my head, its buried in the garden with the dog. It will be paid either when I die or I sell my house. Everyone is happy especially me.

It was my personal opinion - I would not want a charging order if I could avoid one.

I'm glad you're happy with it.