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Markgen
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by Markgen » Thu Apr 12, 2012 10:36 am
I am a little unhappy with the way things are going at the moment with the company that are looking after my debts. I've been in an IVA since 2008 and am due to complete next September. To gather more funds they initiated a PPI claim for my bank loans which have been successful and I have received a large amount in excess of £8000. I am paying £325 per month and have not missed any payments. I don't feel as relaxed about this process as I should be and I should be making a fair sized dent into my debts but I am not sure that is what is happening. I am also not very happy at being told by the agent that I spoke to at Debt Free Direct that the money from the PPI claim will not make any difference. Surely it should and I understand that to successfully complete this IVA I would need to have settled a third of the debt, which surely I must be well on the way to doing. I'm not happy about having to surrender the equity on my house at the end of this procedure either, I don't want a more expensive mortgage at the end of it. This won't help me if I end up back in debt with a bigger mortgage again. I've also now sent two emails asking to retain £500 for repairs to my house that are needed and have not received any reply. I don't feel at the moment that I will ever be free of this debt that I am in now. Being in an IVA has given me more money to play with each month but i have never felt relaxed about it and being told my PPI payment won't make any difference does not help.

 

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kallis3
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by kallis3 » Thu Apr 12, 2012 10:43 am
Hi and welcome.

Sorry that you're not happy with your iva.

You will always owe 100% of your debts plus fees until the end of the iva and the PPI claim will just mean that your creditors get a better dividend. As regards the equity release, you are highly unlikely to be able to remortgage so your iva may well carry on for an extra 12 months. Check what it says on your paperwork.

We do have a poster from DFD on here, hopefully he will pick up on this.

 

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Markgen
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by Markgen » Thu Apr 12, 2012 10:52 am
Hi Kallis, thanks for your reply. I did feel that I would not be able to remortgage as I am getting a bit old to be remortgaging anyway. It does say on my paperwork that the IVA can be extended for 12 months. I am rather suspecting that this will happen, not that I really want that as I want to be free of this for once and for all. I'm annoyed at myself for getting into this mess in the first place and that feeling will not go away.

 

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MelanieGiles
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by MelanieGiles » Thu Apr 12, 2012 11:13 am
Your PPI reclaim will make a difference to the IVA - creditors will get a higher dividend! Perhaps the person you spoke to meant that it would not make a difference to you - it will, as you ought to be pleased that your creditors will be getting a higher return as a result of certain banks admitting that they have wronged you in the past.

The terms of the IVA which appear to be now troubling you, were the ones which you did agree to at the outset, and you only ought to need to extend the IVA for equity purposes if you fit the 85% loan to value formula.

Be proud of what you have done over the last four years or so, and look forward to a much brighter future.

 

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Markgen
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by Markgen » Thu Apr 12, 2012 11:16 am
Hi Melanie,

Thanks for your reply. I did say to them when I asked the question will it make a difference to my creditors that is why I was astonished at the reply. I agree with your comment about the equity and I was well aware of it and did agree to it, can't get away from that. Now the time of completion is getting closer I am getting a little more nervous about it. I am pleased that something is being done to help me out, but a few concerns have crept in over time.

 

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KAYKAY
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by KAYKAY » Thu Apr 12, 2012 8:49 pm
We were with DFD and at the end of the 5 years were requested to pay a further 12 months payments in lieu of equity. I will list below the rationale that kept me going to the end

a) As we were unable to re-mortgage a variation was put forward to creditiors... remove the property from the arrangement and extend for 12 months. Positive to this - Will not be paying a higher mortgage for the next 25 years.

b) Was due to release £34k equity... ended up paying extra 12 months total of an extra £10.5k - positive a saving of approx £24k

c) Creditors received more from me in an IVA than they would have if I had been made bankrupt - positive Head held high for doing my best, and a debt free future to look forward to.

I know life in an IVA is a struggle, but the feeling and brighter future you have at the end, far outweighs the struggle for 5 to 6 years.

You are really close now (I know it doesn't feel like it sometimes). Good luck, I am sure you will get there and come out the other side with a much better outlook on life and your debt freedom.

 

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MelanieGiles
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by MelanieGiles » Thu Apr 12, 2012 8:53 pm
Kaykay's experience does serve to demonstrate that there is a real common sense factor in most IP firms and this shows in the actual results achieved - both for creditors and the debtor.

 

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Markgen
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by Markgen » Fri Apr 13, 2012 8:52 am
Thanks to KayKays and Melanies messages. There is light at the end of the tunnel. I think that I would rather extend for 12 months than re-mortgage. I don't think I could possibly get a re-mortgage anyway, my age being a considerable factor as by the time the IVA finishes I will be over 55.

 

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Markgen
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by Markgen » Fri Apr 13, 2012 4:46 pm
Spoke to DFD again today and had my mind put at rest so am a lot happier with proceedings now.

 

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kallis3
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by kallis3 » Fri Apr 13, 2012 4:53 pm
Glad you're feeling happier Mark.

 

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luluj
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by luluj » Fri Apr 13, 2012 8:14 pm
Mark - you have come so far - don't worry now - it will all be ok and your creditors will receive a higher return which is a really positive thing.

 

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mattyboy
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by mattyboy » Fri Apr 13, 2012 11:23 pm
I was with DFD and they were brilliant I'm the end. After writing up a detailed letter outlining my attempts to remortgage, the fact I had only 20% or so equity and that I had paid interest only for the five year term they accepted this and did not extend the payments or seek any form of equity release. It was nice to see that they took my letter as proof and didn't make me jump through hoops. They only needed one valuation and accepted my argument that in a forced sale it would be worth less than market value. I found them to be quite pragmatic. I think if you lay out a well written letter outlining your case it will be taken on board

 

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nomoremoney
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by nomoremoney » Sat Apr 14, 2012 12:35 am
Yes Margen, you recieve 8k of ppi and feel gutted that keeping 500 quid is probably not allowed. There will be a stampede of request if they allow you to keep the 500 quid.Funny how you chose 500 quid.....mmmm. Clearly the rules sucks and everyone accepts it like been brainwashed. I make my point again why cccs would have allowed you to keep the 500 quit but you are with dfd. Just have a drink etc,you will forget it. Getting into debt is no fun,an iva is a struggle as mentioned,lots of things follow from it,good and but mostly bad. I would not even go on about problems in getting credit afterwards.Yes.....
Last edited by nomoremoney on Sat Apr 14, 2012 1:00 am, edited 1 time in total.

 

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Markgen
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by Markgen » Sun Apr 15, 2012 9:52 am
After all this I won't ever want credit or loans ever again. I wouldn't want to go through this again for all the tea in China. There is nothing suspicious about me asking for the money and there is no way I would have asked for all of it, it is for the benefit of the creditors at the end of the day and the more they get the better it will be for me. They still get the £500 back at the end of it all.

 

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Declan at DebtFreeDirect
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by Declan at DebtFreeDirect » Tue Apr 17, 2012 3:52 pm
Markgen
Firstly, apologies for the late response - I am only catching up on these posts after the Easter break. I would like to echo what has already been mentioned in that you have come a long way and indeed there is light at the end of the tunnel. If any of the advice we provided did confuse you, I do apologise. If you do need any assistance either now or in the future, please dont hesitate to let me know and I will be more than happy to help.

My contact details can be found in my profile.

Thanks
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