www.iva.co.uk

Hi Its took me today to realise I have a serios debt problem, the usual more going out than coming in!
I Have spoken with DFD today and they have recommended an IVA. I have a joint mortgage with my Husband, but all the unsecured debt is in my name only, so they recommend an IVA in my name, They have said that they can look to free me of debt within 5 years by offering my creditors reduced amounts, all sounds workable, I just seem to have a nagging doubt at the back of my mind, they said my house will be safe, however the creditors may look for a remortgage in 4 years, the fact that our secured debt pretty much 100% of the house value, should I be worried by this? I spoke to another Debt company who suggested I woulod be better off with a Dept Management program, hwoever this would take 12 years to pay off! Im mega confused and just dont know what to do for the best, I dont want to lose my house, but I need this nightmare to go away, its already making me ill, any assistance and advice would be appreciated.

I think that an IVA should be strongly considered if comparing with an informal plan that could last c12 years. In an IVA if your property had increased in value significantly then you would be required to release as much of your share of the equity as possible. A rule of thumb for this figure is around 80-85% of the property's value. You should also consider bankruptcy as if there is no equity in your home currently you may be able to buy this back from the court for a nominal fee and therefore not lose your house.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Hi Oliver
Thanks for your response I just cant take any risk with losing my home, I have a 2 year old that I already feel bad for landing him in this without the prospect of having to sell up and move him to a worse area and smaller house.
If they make me remortgage in year 4 is it just to cover any reamining debt or is it that they can take as much of the equity as they like, I know it sounds a stupid question im justing getting myself more and more confused

If you have little equity now, given that the housing market is predicted to stabilise over the next few years, there may be little equity to raise during the final year of an IVA, and if your share is lower than £5,000 then there will be nothing to raise under current IVA protocol.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

So they would only be able to look at my share of the equity then? they wouldnt be able to look at the half that would be considered to be my husbands share?
Is it wise to carry on down the route with DFD or do you thik I should get in touch with you melanie? I have already ordganised 2 new bank accounts (1 for me & 1 2 replace the current JOINT account ma and my husband have for bill & mortgage) as recommended by DFD I did this online so am just waiting for the paperwork through to sign, they said I should do this as one of my creditors is the same cpmany as we have our bank accounts with

Let me know your thoughts, Im just worried that creditors wouldnt accept an arrangment, and I am desperate to deal with someone trustworthy, and has my best interests in mind.

Yes - the property will be revalued, and you will be required to raise a new mortgage based upon 85% of the value, which will enable you to pay off your existing mortgage - and then pay over your share of the difference. In reality you will just limit the lending to that figure probably.

I am sorry that I am unable to pitch for work on this forum, as I have to be seen to be impartial as an exper, but if you need additional information you can contact me at the website below. Perhaps it would be better to take advice from a couple of other firms before you make a final decision as to who to appoint to represent you.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Melanie on this site seems to have a fantasic reputation and success rate.

Hi Melanie
Ive just filed the forms in on yr site.

thanks

Thanks caraf, you feel like you just dont know who to turn to for the best.. scary![:(]

Hi lpoyner

Well done for admitting you need help with debt, it is one of the scariest times sitting down and realising you need help.

You can do no better, in my opinion, that contacting Melanie for advice. Her and her team are brilliant and you will get honest professional advice and support at all times by friendly non judgemental people[:)]

Good luck
Emma x

Thanks Emma

I just feel so stupid for getting myself in this mess, there just doesnt seems anyway out at the moment, Ive filled in forms on Melanies website so hopefully I can start a process to get out of this soon. thanks for recommending her
Louise x

Hiya Lousie, I just wanted to wish you the very best of luck, as I know just how scared you feel right now. Unfortunately, as drastic as it may seem an IVA agreement might be the means to an end you need. If you have any credit card debts and are currently paying off the minimum each month, your repayment could stretch as far as 20 years. I was so recently where you are now. When I entered into my IVA in 2006 my son was only 2. What with being a single parent I couldnt do it anymore. It was the hardest decision of my life because up to that point my credit rating was perfect. Heartbreaking really! Anyway, it will get better with time. I just had to step back and look at it from another view point, being that I would now being able to live on cash rather than credit for the first time in years. Secondly all my balances were going in the right direction now, down instead of up. I have now lived on cash only for 2 years and as much as the IVA remains scary in essence, I have to admit the end is now in reach whereas before there was only sleepless nights. I sincerely wish you ALL the very best. Try not to let it sink you into a depression, as this will only work against you overcoming this in your life. You will get there! take care.

Hi Kes

Thanks for your support, all i see ahead is a life where, Im only going to be able to afford the cheapest brands of everything when I go food shoping and buying my sons clothes in second hand shops! I think going on a holiday is probably going to become a thing of the past, I just feel that I have really let my son down!
Hopefully I can get things moving on this and I may be able to stop feeling so depressed!
Thanks again

You cannot be letting your son down if you are doing something positive for the future by dealing with your debt demons now.

Your little boy will only be 7 when you have concluded your IVA, and in my experience they don't start wanting to have money spending on them until about that time. Thereafter, that surplus money will be yours to spoil him rotten (within reason of course!!) whereas if you carry on as you are, you will still be in debt at that time.

Is your husband fully supportive of what you are doing as well?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

He is today after the screaming and shouting of yesterday, but in fairness to him he was totally unaware of the level of debt I was in, again my fault for keeping it from him, he had some serious debt last year but I managed to arrange a remortgage to get him out of it, unfortunately getting him out of it didnt help me, and I just carried on regardless thinking I could manage mine, foolish i know!
Ive completed the forms on your site, is it worth me giving you a call? as I feel I need to get the ball moving on this I want to get a serious offer on the table to creditors, that enables me to pay them a fair amount but still leaves me enough to put food on the table. hopefully im going to be in a situation to do that!
Louise