www.iva.co.uk

Hi there. I have a spiralling debt problem to the tune jointly of £82K. I have looked at the options of IVA or Debt Management, both of which I think may be suitable but can you advise which would be the best route and the least detramental to my character. I am so totaly ashamed of our situation and would not go bankrupt due to the sheer embarrassment the local notice would cause. Its our own fault we are in this situation but now realise we cannot afford our monthly payments, and although up to yet, we are not behind with anything, if we carry on going, we soon will be. Thanks for your time.

Hi Kazzy and welcome to the forum

It is difficult for an outsider to advise you as to the best route for you - that really is your decision, but bear in mind that an IVA has a definate end point whereas a DMP is less certain and could extend far longer, with no certainty that creditors won't change their minds or stop charging interest.

There is nothing to feel ashamed about and no-one on this forum, or the professionals that you choose to represent you will be in any way judgemental. I am sure that there are very valid reasons for your current situation, and you have taken the right step forward to finding a solution.

Perhaps if you can post a few more details - such as your current level of disposable income which could be offered to creditors on a monthly basis, and whether you are a home owner would enable us to help you explore the options a little further.

Hi Melanie, Phew, you dont know what a relief it is to speak to someone about our problem. We have been so scared to tell anyone as we are so ashamed, we havent even confided in our best friends. I have been on the cccs website and completed their questionnaire, and they work out that we have £756.00 disposable income, that is after all essential bills and HP payments have been taken care of. Our total income is £2862 of which appx £1800.00 per month should be our actual debt monthly payments (obviously this doesnt include rent, food, etc etc. We were homeowners, but in January of this year we sold up and moved into rented, as we were aware that our finances were spiralling out of control and couldnt face the humiliation of 'losing' our home. Thankfully we never had any mortgage debt, so it was just a normal sale, but without the noose of the big mortgage around our necks, we are happier with our home situation. I have a big worry about my debts in that I work in an accounts office (I am not a qualified accountant) and cannot tell anyone about my debts as I would hate them to think I was a threat to the company. I am not; we are just an ordinary family of three who have made some very regretable financial decisions during our married lives and fifteen years later, we are now paying for it in a big way. We are really desperate to find a solution to our problem albeit we realise this wont happen overnight. We are happy to work with professionals who are willing to help and would appreciate any advice from anyone else in our situation. Thanks for listening. Kazzy

Admitting that you have a problem is always the most difficult step, but sharing your problems with others is usually the next step to finding a resolution. You have already made some difficult decisions - in selling your home and moving into rented, so the most sensible step now is to find a way of dealing with your debts which gives you light at the end of the tunnel. And do keep using the forum for support in the meantime.

Kazzy ... I just wanted to say please don't feel ashamed ... it happens to many of us. I'm a professional person,and it happened to me through an accumulation of life events.

There is a list someone once posted on the Forum of all the famous people who have been insolvent ... makes for some interesting reading!

The most important things is that you have had the courage to want to address your situation ... and do remember that you are very much amongst friends and like-minded people here.

All the best

Debbie

Bless you, thanks Debbie. The stigma attached to being in this situation is unbearable, hence my reluctance to go bankrupt, although I know people who have and it hasnt harmed them in any way, other than dented their credit rating. As I said before, I am in a rented property and fear that any kind of debt resolution will result in my landlady not renewing my tenancy, as I am sure once these proceedings start, my credit file will tell her that I am a high risk, although I havent been late or missed a rent payment since I moved in. I still dont know what the best route is for me. Does an IVA have as bad an affect on you as Bankruptcy? I have two loans with Northern Rock, that doesnt look promising either! Perhaps someone could advise? Thanks for your kindness, it is so much easier to talk about it. We've been fools. Regards Kazzy

Hi Kazzy and welcome to the forum.
We were the same in loads of debt, I was in denial for quite a while and just kept carrying on and going without everything just to get the bills paid. You have made the biggest step in realising that you need to sort it out. Sit down and work out your income and expenditure and your total debts and get some advice on the best solution for you. Melanie is such a lovley lady and a fantastic Ip who comes highly recommended. I know you would get best advice for your situation so may be worth consideration. you can also get reviews on IP's and companies on iva.com.Read some of the blogs as well they give a good descriptions of what the process is and other options like bankrupcy as well.
Keep posting and ask anything you want,there is always someone to answer.
All the best

Ang

Hi
Welcome Kazzy
We are all,or have been,in the same boat on this forum[professional experts excluded]so you can be sure that no one will judge you.
There IS a solution for you,please post more details so that we can support and advise
Regards

Hello Kazzy and welcome [:)] You are among friends here [:)]

Our debts and disposable income were similar to yours and we really thought we would lose everything! You do of course need professional advice so take some time to read the reviews on www.iva.com. I can personally recommend Melanie Giles. She is a very professional person, and both her and her team have a wealth of knowledge and experience communicating with creditors (including Northern Rock)

Hi Kazzy

the choice of an IP to help and guide you through the process is the most important decision you will make for a long time. You simply cannot afford to leave it to chance or go by a simple advert on TV or in the press.

Please check out the iva.com comparrison area or simply take advice from current clients of a very capable IP. You couldn't do a lot better than give melanie a call on Monday.

Good luck and welcome to the forum

My goodness, I really didnt expect all this support and would thank you all so much for your responses. I will certainly check out the blogs and take the first steps in speaking with an IP about my options. Hopefully I will be able to post some good news in the not so distant future. Thanks again, the relief really is immense. Regards Kazzy

I too was embarassed by my situation and have tried to keep going - I am the main earner, have a very demanding job to keep doing as I can't afford to go off sick anymore, two girls who both need my emotional time and a husband who is not well and can't earn very much!! I came to this forum by accident but by reading everyday and sometimes replying I have found a way forward. I am not there yet and just going through the motions of seeing what my options are but I have found some very helpful information and a lot of support. I have been gathering information for a while from this forum so once I make my decision no which way forward is best I will be fully prepared and no big surprises. I wouldn't have know which way to turn but for the support in here. The best advice I have got from here is to speak to the professionals and not just one so I can get the best way forward.

Thanks to all

hi kazzy

just wanted to say hi and to say i know exactly how you are feeling!
we too felt ashamed and frightened we had debts of 160k and did not know which way to turn until we found this site and melanie and her team, we had our iva approved a couple of weeks ago and we feel like a weight has been lifted. my husband had 2 loans with nr also but with melanies help our iva got approved!

you have done the hardest part by facing up to your problems, there will be a way forward for you, stop being ashamed and be proud that you are now facing your problems instead of burying your head!

keep posting as you will get lots of support on her, i wish you the very best of luck

barb x

Hi Elizabeth & Barb

Thanks so much for your support. Although I don't wish even my worst enemy to be in this situation, it is a relief to know you are not on your own and with the current economic situation, I am sure we will unfortunately be joined by many others in the trap. You are right and I now realise that the first step is admitting the problem and you can then take positive steps to try to rectify it. Melanie comes with such high recommendation that I will gather all my info and make contact with her. I am sure she will be able to assess my situation and give me the best advice once armed with the relevant info. You both keep your chins up too, thanks so much for responding. Kindest Regards Kazzy

Just a thought if anyone can help - we have a car which was purchased two years (appx) ago on an option to purchase scheme whereby after three years, we can either pay a lump sum for the car, or chop it back in for a new one and continue with the HP payments. If we go through the channels of applying for an IVA, what will happen next September when the three years has expired and we get our option to purchase? I think I understand that, with an IVA, you are prohibited from taking out any further finance, so as we do not have the £5K to buy the car outright, am I right in thinking that we will lose all the deposit we put down on the car in the first place and the car as well. We are very concerned, as this car is used every day to travel the 24 mile round trip to and from work. Any help would be appreciated. Thanks Kazzy