What are my chances

[antony]

Hi New member. Sitting here trying to work but got to get some questions answered. I have applied today for help in getting debts sorted after house sale fell through. Before paperwork comes through can you help with some info
I have debts of 96k excluding mortgage and secured debt by picture leaving no equity in house to pay this 96k
Mbna me £14.5k
mbna wife £17.2k
capital one me £7.3k
sainsburys wife £7.2k
barclaycard £9.7k
mastercard £6.2k
overdraft barclays £15k
loan barclays £19k

earnings total £3.5k/month

What are my chances with these debtors to getting an IVA accepted?
should i change mortgage to go from my wifes bank account along with all other DD etc?

Thanks for looking

[pixie]

Hi Antony and welcome to the forum.
Is it just you applying for an iva or your wife as well? If you have debts with your current bank you need to change accounts to a bank that is not related to one of your creditors. They could freeze your account and you need your wages to go into a safe account.
A factor to consider if an iva is viable is how much disposable income you have after paying all secured lenders.

[animaleyes76]

The companys you mention are almost identical to the ones that I had, and the proportion between debt and salary is around the same.

[kallis3]

Hi Anthony and welcome from me too.

I am sure the company you have contacted wouldn't have suggested an IVA if they didn't think it was a viable option.

Can I ask if they discussed all available options with you, as they are supposed to do?

When your paperwork comes through, make sure you put all of your expenditure down, you will be with this for 5 years and you need to have a realistic standard of living.

As Pixie says, if any of your debts are with your bank, you need to change before going down the IVA route. Nationwide and Co-op are two good ones.

[antony]

Also should i re-open my natwest account. We both stay away for work and need a debit card for hotel bookings.

[antony]

Sorry for some reason the page wouldnt load so i am probably posting 2 messages before anyone replies its not that im inpatient. Just some other quick advice would be appreciated. I understand its 5 years but as i got us into this mess then i feel i should pay back as much as possible.
Someone mentioned is it just me going into the IVA and in answer its my wife and i. does this make a difference its a joint bank and mortgage we have. The Total proposed by cccs to pay to creditors every month would be 1070. Do you think that is enough, they used the minimum guidelines whatever they are to get to this amount being left.
My wifes account is with HSBC even though its not been used for 5 years so i guess from reading other pages this is not a good idea. She has a savings account with hSBc with 10 in it would this make any difference? to them honoring her account.

[Viki.W]

Hey antony, welcome to the forum. I would be very wary that they are using the minumum guidelines, it must be affordable for you, check over your expenditure again when you get the paperwork through. It won't hurt to get a second opinion.

[Michael Peoples]

Hi Antony and welcome.
You say that you have a mortgage and secured loan. Depending on the amount that it is costing you each month some creditors may feel that a voluntary sale and a private rental would increase affordability. However, do you have a payment protection rebate to come from Picture and is there any equity at all in the property? A voluntary sale may increase your surplus but it could also increase your debts if there is a shortfall and would also mean the loss of the payment protection rebate.

I have to agree with the other posters in that it is not prudent to use the minimum guidelines as it leaves the IVA under pressure from the start. Depending on how much your secured payments are each month, it does seem very little would be left for living costs from an income of £3,500 if your proposed IVA payments are £1070.

[size5]

I would always recommend that you talk to 2 or 3 providers before you go any further anyway, a 2nd and even 3rd opinion will do you no harm at all as Viki says. There are a few people that post on here regretting taking the first option that was given to them and who wish they had their time over again.

Accordingly, you may wish to visit www.iva.com and have a look round there before you make your next move.

Good luck and regards.

[kallis3]

In answer to Michaels last post, our debts were £83k and our monthly income is about the same as Anthonys, and we are paying £615 per month between us. We did have equity, but at no time was it suggested that we sell our house and rent (we also have a secured loan as well as the mortgage). Our mortgage and secured loans payments are more than half our monthly income.

Give one or two others a ring as suggested, the advice is free and it may end up saving you money.

[antony]

Hi Again Glad to get some feedback. Our mortgage and pic loan are 1350 per month 2 company cars no other hp just living expenses and 2 cats. Theres no equity now weve dropped 30k on house but no takers. I will get a second opinion as to how much i can afford but obviously do want to get iva approved. Secondly what difference does having a debit card account make to the iva if any.

Thanks for any replies

[Michael Peoples]

The debit card is fine provided that there is no overdraft on your account. It only allows you to access your own money so does not have any bearing on an IVA.

The secured borrowings are not excessive and are below 40% of your net earnings which some creditors have used as a benchmark in the past. It appears to be down to the income and expenditure account and I would speak to other IPs and list all your expenses. Some expenses are never allowed but some expenses not listed on the standard guidelines are acceptable if explained. For example, you both drive company cars and may be allowed extra costs for suits, dry cleaning, meals while on the road etc. Even small allowances add up and make the IVA more affordable and ultimately more likely to run it's course. Justify the expenditure and if possible show receipts because guidelines are just that and not set in stone.

[kallis3]

There are several professionals that post on here who I recommend that you call.

Melanie Giles is one, Michael is another, Andy Davie, Vikiw, to name but a few.

You can either click on the links in their signatures, or check them out via the experts page on the left hand side.

[MelanieGiles]

It is right for you to be steered towards guideline figures, after all your creditors operate on this basis and there is no real point in moving too far away from CCCS guidelines, but we always use the maximum amounts and rarely are asked for increased contributions.

You ought to have a gut feel as to whether the payments are affordable, and from your posting this is not apparent. The income and expenditure account also needs to be reflective of what you actually do spend - too far a way from the truth will be a recipe for disaster in the long run.

No harm in taking a second opinion, and this will not cost you one penny apart from a few minutes of your time on the telephone or in an IPs office.