we are suffocated financially

[steve.c]

WE ARE CURRENTLY IN AN IVA WITH DEBT FREE DIRECT. WE HAVE RECENTLY BEEN CONTACTED BY IVAC WHICH LED TO US RECEIVING A CALL FROM BANKRUPCY UK. IS IT TRUE THAT AFTER 5 YRS WE WILL STILL HAVE TO RE-MORTGAGE OUR HOME TO PAY OFF WHAT WE OWE? WE WERE ORIGINALLY TOLD WE WOULD BE DEBT FREE WHEN OUR IVA ENDS. HOW CAN THEY CLAIM THAT 75% OF OUR DEBTS WOULD BE WRITTEN OFF, WE CURRENTLY PAY £290.00 PER MONTH BUT THEY KEEP ASKING FOR MORE EVEN THOUGH WE CANT REALLY AFFORD IT, WITH A PROTECTED BANKRUPTCY WHICH WE WERE OFFERED BY BANKRUPCY UK, IS IT TRUE THAT WE WOULD KEEP OUR HOME AND ALL DEBTS INC SECURED LOANS WE WOULD NO LONGER HAVE TO RE-PAY? ITS ALL SUDDENLY SO CONFUSING, WITH ALL OUR CURRENT OUT-GOINGS AND RECENTLY BEING MARRIED WE STRUGGLE CONSTANTLY WITH MONEY, WE WERE ASKING OF ANY OTHER OPTIONS WHICH MAY OR NOT BE AVAILABLE TO US. WE BOTH WORK, BUT ARE SUFFOCATED FINANCIALLY, WE RECENTLY TOOK OUT A SMALL LOAN FROM PROVIDENT JUST SO THAT WE COULD PAY FOR CAR REPAIRS, IF ANYONE CAN HELP OR ADVISE, WE WOULD BE VERY GRATEFUL

[smr]

Hi Steve.C
Many of the questions you have can be answered by Debt Free Direct and you should contact them as they have knowledge of your case. However many of the answers you seek I think should have been provided to you prior to you entering the IVA.
How did you manage to get a loan through when you are in an IVA ?
Sharon

[ray_a]

Hi Steve

This looks very confusing and perhaps you could let us have some info on whether you have a house, the value, and mortgage. It would also help us if you can see in your IVA proposal as to whether you have an equity release clause in it?

This should at least give us an idea of the type of an IVA you have.

On the point of IVA payments varying this is true dependent on your circumstances.

Perhaps you could tell us how much you owed originally and how long the IVA was to last?

Sorry to ask lots of questions but we (especially) the experts can help!

Please come back as we want to help and we have had similar problems.

Take care

[Adam Davies]

Hi
Be very careful of the info that you have bee given.
Contact DFD and discuss any concerns that you have.
Do you have a fourth year equity release clause in your IVA ?

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

[steve.c]

YES, WE HAVE A HOUSE, A MORTGAGE FOR £92000, A SECURED LOAN WITH ENDEVOUR PERSONAL FINANCE FOR £30000, WITH HAVE BEEN IN THIS PROPERTY FOR ALMOST 6 YEARS. CURRENT APPROX VALUE OF OUR HOME IS £152000. YES WE HAVE AN EQUITY RELEASE OBLIGATION IN YEAR 4. OUR IVA IS TO LAST OVER 5 YEARS AND OUR TOTAL DEBTS INCLUDED IN THE IVA WERE AROUND £28000. WE CURRENTLY RE-PAY £290 PER MONTH. TO BE HONEST, AT THE TIME WE WERE RECEIVING SO MANY LETTERS AND DEMANDING PHONE CALLS ON A DAILY BASIS THAT WE WERE AT THE TIME THANKFUL FOR BEING ACCEPTED FOR AN IVA SO WE JUST SIGNED FORMS. BANKRUPTCY UK TOLD US OVER THE PHONE THAT NO MONIES WE HAVE PAID SO FAR HAVE BEEN RECEIVED BY OUR CREDITORS, SOME £6000 JUST IN FEES FOR DFD, I DONT KNOW HOW TRUE THIS IS, WE HAVE NOT CHECKED. WE WERE APPROVED A £300 LOAN FROM PROVIDENT, THEIR FEES ARE HIGH AND THEY DONT CREDIT CHECK, TOTAL PAYABLE FOR A £300 LOAN IS £504. BUT WE NEEDED THIS MONEY FOR CAR REPAIRS. DFD DONT CARE ABOUT THINGS LIKE THIS. WE GOT MARRIED IN JUNE THIS YEAR AND TRIED TO SAVE FOR THE WEDDING AND HONEYMOON, DFD EVEN WANTED THIS MONEY, MY WIFE SENT OUR MARRIAGE CERT AS PROOF, AND WE STILL GET LETTERS, WE SENT PAYSLIPS AS REQUESTED BY DFD FOR A REVIEW SOME TIME AGO THEIR REPLY TO THIS WAS A MONTHLY RE-PAYMENT OF MORE THAN DOUBLE WHAT WE WERE PAYING, STILL HOPEFULLY, ITS ALL SORTED NOW. YES WE HAVE MISSED A COUPLE OF PAYMENTS WITH DFD, AND OUR LOAN, ALTHOUGH WE HAVE ALWAYS MET OUR MORTGAGE PAYMENTS. THIS IS NOT AN EXCUSE BY ANY MEANS BUT WE WERE FIRST TIME BUYERS AND JUST FELL INTO THE MONEY PIT, CREDIT CARDS, LOANS ETC. I HOPE THIS INFO HAS BEEN OF SOME HELP, MANY THANKS.

[MelanieGiles]

Isn't this the company that recently sent out those ridiculous letters to every single person on the IVA list? Run by the anonymous Mr Baker who has still not returned any of my phone calls?

I would personally put it in the bin where it belongs, and if you have any concerns about the interpretation of your IVA or worries about ongoing affordability, speak to your IP directly. And if you feel that bankruptcy is now a better option - in the understanding that your house is at risk in the situation - then ask your IP to explain the implications of this to you.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[ray_a]

Experts

Would it might not be an example of offering a full and final settlement given there is quite a lot of equity.

Failing that a possible move to a cheaper property or moving into the rental sector?

[MelanieGiles]

Yes - this is an option, but when it comes to specific advice about the poster's situation, they really ought to get this directly from the IP who has detailed knowledge of their case and the attitiude of the creditors.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[jpj]

Presumably a full and final should be looked at seriously as Steve C has missed 2 payments already, Am i right in thinking if he misses one more that is an automatic breach of his IVA (or do the number of paymemts you can miss vary from IVA to IVA ?)

[MelanieGiles]

Probably - but he would need to check the express terms of his IVA proposals.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[emma_t]

Hi steve.c and welcome to the forum
Please speak to DFD as soon as possible as they should be there to help you through your iva.
If you have not yet got the money from provident I would not take it as it is getting credit while in an iva, and could breach the terms of your iva - you should speak to dfd and see if there is anything they can suggest to help you while you pay for your car repairs.
i wish you luck and hope DFD are reasonable with regards to your situation
Good luck
Emma