Meeting on the 14th Feb OK, bad news . IVA failed

[monty77]

Hi all,

Have my creditors meeting tomorrow at long last, and I'm ashamed to say that reality is only just hitting home.

Just had a massive row with my girlfriend who's been extremely good thus far in even considering taking me on with my debt issues and past stupidity but I think reality is hitting home for her too.

We were planning to move in together soon but suddenly there are all kinds of questions being thrown up .. would really appreciate some words of wisdom from anyone else who's been in a similar position.

1 - She has an excellent credit history, how could moving in with her affect _her_ credit worthiness?

2 - We've talked about buying a house .. but as it stands to stand a chance of getting anything at a reasonable cost it would have to be in her name with me paying what I pay in rent currently to her as 'rent' at a new house. Does this work in practice? Is a mortgage company going to ask questions about such an arrangement? Am I breaking any terms of my IVA in doing this?

3 - What about marriage? With the same surname surely we'd be linked then .. again, not nice for her

4 - Although not on the agenda ... what if she fell pregnant? Does my IVA cut me any slack in this situation? Naturally I'm sure it's frowned upon by creditors.

Thinking this through is making me sick and seriously worried I'll lose her due to my own stupidity with money over the past years, vast majority of it done before we even met. It's also making me think perhaps BR was a better route, at least then the financial damage is for less time, although of course there are other moral implications doing this - one of the reasons I chose an IVA is because I wanted to feel like I was at least repaying a fairer share of the money I was lent in good faith.

Sorry for the essay, feels great to vent

Adam

[MelanieGiles]

Hi Monty - and good luck for tomorrow

Dealing with your issues in turn

1 In reality her credit status is unlikely to be affected, as you do not have to disclose that you are living as partners if she decides to apply for credit in her own name. Your IP will likely need to see evidence of her earnings, to ensure that you are merely paying a fair share towards the shared costs and not supporting your partner, or being left with any additional surplus as a result of her financial support to you,

2 If your partner can afford to buy a house and obtain a mortgage based upon her salary alone and your rent, this would appear to be a sensible way forward. A mortgage broker would be able to help her with this and advise you how best to describe the relationship.

3 Yes - unfortunately there is no getting away from it, marriage would affect her with the same surname and address - but as I always say, Love Conquers All!

4 Having children is certainly not frowned upon by creditors. You will need to confirm how this would impact upon your finances, and seek the advice of your IP at the time. IPs will often put forward variation proposals if their client's disposable income reduces as a result of children.

If your relationship is sufficiently stable, she might give you a hard time for a while but will be the ultimate support to get you through things. Surely she is proud that you are addressing your debt demons, and if not then is this the person you would commit to "for better or for worse"? Things like this can be a remarkable test upon a relationship - especially a new one - but I am sure you will get through it.

[monty77]

Hi Melanie,

Thank you so much for taking the time to reply, do you ever take a break?

On point 4 what happens if this reduces my payment below an acceptable level? Does BR become the only option?

..my proposal only repays 30p in the pound as it is.

Thanks again,
Adam

[MelanieGiles]

Well clearly a revised IVA still needs to be viable - and to be honest the more you pay in before the happy event the more chance you have of getting a lower deal accepted in the future. If you are left with little or no disposable income, then bankruptcy might be the best option for you, but most IPs would go to creditors, explain your situation, and ask them to accept what you have paid in in full and final settlement. It often works!

[Lisa2009]

Good luck for today.

[Skippy]

Good luck for today Montt, don't forget to let us know how you get on!

[kitty]

Best of luck for today Monty.
Let us know how it goes.
Kitty

[monty77]

Thanks all !!

...meeting is in progress and have already had a couple of calls.

They've asked for £545, which is over the £500 in the proposal and the £479 originally advised by Thomas Charles as the required payment.

This is quite stressful ... my I&E is far from generous and they're still pushing for more - do they want this to work or not? All along everyone has questioned my sanity on going for an IVA over BR as I'd come out the other end far more favourably (financially speaking) if I took BR instead.

Going to be a stressful few hours!!!

Adam

[Lisa2009]

keep us updated. Best of luck

[monty77]

OK, bad news ... IVA failed - the voters who represent Cahoot/Barclaycard weren't happy with the outgoings for my car as although my company car allowance covers the lease cost, it doesn't cover the additional expenditure.

We argued that regardless of how my car came to be, the expenditure would be very similar, with this argument was dismissed.

So, it's back to the drawing board it would seem....massive dissapointment as it looks like BR is not the only available route to me

Happy valentines day!

Hope others having their meetings today got some good news!

Adam

[Lisa2009]

Oh montt i'm so sorry it wasnt accepted.
Good luck with whatever you decide next

[Shining]

I am also sorry to read this but wish you well in whatever route you decide to take now, chin up.

[monty77]

Thanks to everyone for the messages of support ... didn't sleep much night, extremely worried as now the creditors will on my back again with gusto.

Onwards and upwards...
Cheers,
Adam

[cat 1]

initially some of the creditors said no to our interlocking IVA, but apparently there is a 14 day period where an appeal can be lodged. My company did this, I have ended up with 6 year iva and 4th year equity clause as a result.Speak agin to the company and ask what ALL your options are?

[kitty]

Hi Monty,
Really sorry things didn't work out for you.
Wishing you all the luck in the world for the future, you'll work something out.
Kitty x