my creditors meeting is the 6th July: approved!

[Lulu77]

I'm going though the IVA process and my creditors meeting is the 6th July. I have around £75,000 worth of debt and the proposal is to repay £450 per month, dividend being around 27p in the £, if I have understood it correctly. I am solely going through the IVA but my husband and I had a joint account. In true Firstdirect form, we have received seperate letters this morning saying they are closing our account - which was expected and I had already followed Andy's advice on another forum thread and switched to thinkbanking. The problem being that we have currently a £1300 ovedraft on the account they are closing. Our approved limit was £500. The overdraft is being included in the IVA proposal that firstdirect have been sent, but they are also going to chase my husband seperately for the overdraft in addition to receiving the dividend from the IVA (if agreed).

My question is really, has anyone been in this situation with a bank, and how did you solve it? My husbands income has been included in my IVA proposal so all spare cash is already going into the IVA payment. Does anyone have any expereince or suggestions of what kind of payment from my husband they would accept? We could maybe pay around £20 per month out of the allowance that has been made for our living expenses within the IVA, bearing in mind they will also be getting the payment from the IVA.

Any advice would be appreciated.

Thanks you and keep up the good work - this site is a lifesaver!!

[MelanieGiles]

Hi Lulu

Your husband will have to arrive at a separate deal with First Direct as he is jointly and severally liable for the debt. Your IP should not have included all of your husband's surplus income into your IVA, without leaving him allowance to deal with this liability. I assume that this is his only debt?

Did your IP know about this debt when he/she was putting yoir IVA proposals together?

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Adam Davies]

Hi
Yes,as Melanie states offer the £20 per month to first direct and just pay it on the button each month.I would imagine that they will sell the debt on to a third party and these are more likely to accept a nominal payment as long as you pay it each and every month.
Your IP should have allowed for this in your expenditure.
Good Luck

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Lulu77]

Hi Melanie

Yes, I did make them aware of the joint aco**** and they did tell me to expect this, and it is his only debt. I am with debtlifeboat and I have to say they have been first class so far.

I intend to write to firstdirect (as my husband is useless a this kind of thing) drawing thier attention to his salary details already included in the proposal. Do you think the £20 per month I am suggesting is reasonable? obviously this is dependant on what happens at the creditors meeting on the 6th July.
Ca they freeze the interest and charges in this situation? If they don't this debt is never going to be paid!

Thank you

[Adam Davies]

Hi
Take advice from your IP before writing and once your IVA is completed you should be able to pay off the remaining debt in a couple of months.Remember they will receive about £350 from your IVA and the ongoing £20 per month from your husband.Once the debt goes to a third party interest will stop so it should be all paid by the end of year five or close to it.
Good luck for the 6th.
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp