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debts just under 55000 to 7 different creditors owe 14000 to hsbc Can afford to pay around 350 a month at the moment but this will increase as i have a new contract in september which will mean i can pay around 500 a month will i beable to get an iva?

Hello phill, welcome to the forum. You're asking if you will be able to do an IVA? I am not an expert,but I am in the process of getting an IVA.
An IVA is an Individual Involuntary Arrangement which depends on your own unique circumstances. You don't mention if you have any assets, i,e. house, cars,etc. If you do, these items will be considered in your IVA.

You will need an insolvency practioner to create an IVA. S/he prepares it based on seperating your unsecured creditors from your secure creditors and looking at your income and expenditures. Your total monthly income, minus your total monthly secured creditors and living expenses will leave a difference of x amount of pounds. This amount will be used to pay your unsecured creditors over a series of months.

This amount can be as low as 25pence/£ to 100p/£. It really does depend on your individual circumstances. I have HSBC as my largest creditor and they required 40p/£ from me just to even be considered to enter into an IVA agreement.

There is usually an equity release at the end of your IVA which is done by remortgaging or friends and family.

I can also tell you that an IVA is a very serious undertaken NOT to be entered into lightly. If your IVA should fail ( you fall into arrears), your creditors can force you into bankruptcy; and it does not matter if you are 2 years into a 60 month IVA or 3 years into it.

Well, that's the brief explanation. Seek professional advice from the debt management companies and insolvency practitioners. You can also contact National Debtline and CAB. Explore all of your options as an IVA may not be the best option for you.

Good luck and an expert will be here to assist you further. Please post to inform us of how things are going regardless of your decision.

All I have left is my humour.

thanks debt dummy
Sorry my question was not very clear i've spoken to a number of companies and explained my situation and i'm just waiting for them to get back to me- i was just trying to see if one of the experts had a idea if the figures worked out?
I understand each case is different, and am aware that hsbc demand 40% and the figures i have worked out seem to be over 40%
In answer to your question i dont have any assets

Hi phill

That definately would work in my book. Good luck with the process, and do watch your expenditure figures as HSBC are very frugal with regard to allowable expenditure. Choose an insolvency practitioner who has a good working relationship with them, and understands their requirements.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

i've gone through everything with thomas charles has anyone got any views or experience with them?

I have worked with these guys since 1999 and think that they are in the Rolls Royce category of debt advisory firms.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

I am so glad you have said that Melanie as i too am going to go through Thomas Charles i think for my proposals.
I believe that their success rate is 99% is this correct?

thanks Melanie,
Another question as i just cant get my head around it, i've been told just to cancel all my derect debits etc and not to notify my creditors just let them contact me and them tell them what i'm doing?!!

Hi Phill and Zoe, I went through Thomas Charles, and they were excellent. If I was told I would be phoned at a certain time they did, and my paperwork was completed and forwarded to Accuma very quickly. It was definitely worth the fee.

Phill, I never contacted any of my creditors, I only told them when they called me. Thomas Charles sent letters of authority for me to complete and sign and send to my creditors once the paperwork had been forwarded to Accuma.

Three down, fifty seven to go until freedom!

Skippy
Did you owe to HSBC, Northern Rock or MBNA/?
x

thanks skippy
i also owe hsbc and mbna too!!![:(]

phill are you getting the bl**dy people ringing you all the time?
zoe

Phil it is quite correct about ceasing payments to creditors you have to treat them all equally and stop paying them now, only pay what you have to ie living costs, food utilites, phone etc.

ANd if your current bank is one ofr creditors open a basic account or one that does not allow an OD and other credit facilities now and get all salary/wages paid into that account, becasue your bank will swipe all the money, freeze the account and cancel your od if you have one.

The 2 names I seem to read about on this seem to be Thomas Charles and Accuma. Do Thomas Charles work on behalf of Accuma? I see skippy that you said Thomas Charles send everything to Accuma. I am a little confused

Phill

The advice to stop making payments to your creditors is good advice, as when you recognise that you are insolvent you have a duty to treat each creditor equally.

This can either be done by making ongoing pro-rata payments to your creditors, which can be tricky to calculate without assistance, or by paying nothing.

If none of the creditors get anything, no-one can claim to have been unfairly treated - but you will continue to get phone calls and letters in the meantime, so time is of the essence in putting your proposals before creditors. Choose a professional who can act for you straight away, and process your IVA from start to finish within 4-6 weeks, to minimise your exposure to harrassment.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk