My partner and I are expecting a call tonight from a IVA advisor, We are a bit shelled shocked knew we were close to the wind but now can't get a re-morgage and am stuck with Northern Rock plus debts around £40000 Partner getting very emotional and the rows getting worse!! What sort of questions should we ask to ensure we get good advice. Please help!!
Make sure that you write down what you want to ask before the call so that you don't forget.
Things to ask should include, but are not limited to, what options you have and the whys and wherefores, advantages and dis-advantages of each. It is a rare case indeed that has only one solution, so it is importnat that you know the pros and cons of all the alternatives. Make sure that you include absolutely all expenditure that you have on a day to day basis, it is all too easy at the initial stage to forget that small pet insurance policy, or to estimate the weekly shop at £100, forgetting the milkman, the odd trip to the co-op etc. If you have children and they have school meals or activities then these should not be forgotten either. A contingency pot, for unexpected expenses, is also a must in my view. If you cannot live reasonably within any budget proposed then query it. It is reasonable to ask people to cut back a little on non essentials, but a different matter to cut down on shopping, petrol etc.
Don't forget to ask about equity release, ask about your fixed rate deal on the mortgage (if you have one) and the effects an IVA will have, if you have a together loan running alongside the mortgage and how to deal with that.
There may be a lot more questions that are relevant to your own circumstances, so, again, make a list. Failing that, you can post on here and someone will be around to answer the all important question that you may have forgotten.
It may also be a good idea to speak to 2 or 3 providers to make sure that you are happy with everything before you make what will be undoubtedly a big decision for you.
Hope this helps.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
Thanks had the call she suggested a debt management plan rather than an IVA whats the difference, Also she said she is from a firm of chartered accountants does that mean shes a middle man and I should go to anoither company direct??
In very broad terms a debt management plan is an informal arrangement with your creditors whereby you offer an amount you can afford each month. Generally creditors will accept the reduced payment and some may freeze interest, in return for you making full repayment. An IVA (again in broad terms) is a legally binding agreement between you and your creditors for you to usually repay a lesser amount than the amount that you owe. It is subject to creditor approval. Once approved creditors are obliged to freeze interest and you know exactly what you are committed to. Before considering either options you should get professional advice (this should be free) so that you find out the pros and cons of each option and can work out which option is best for you.
You need a licensed Insolvency Practitoner to act as Supervisor of an IVA but you do not need an IP to do a debt management plan. All IPs have a responsibilty to advise you on all of your options.
A Chartered Accountant can also be an IP - just ask them if they will deal with it or pass it on. If you are worried speak to some more advisers. If you want to speak to an IP you can find most of them on www.r3.org.uk. R3 is the trade association that most IP's are members of.
Sarah Nancollas - Licensed Insolvency Practitioner with over 20 years experience.
Providing positive solutions for your debt problems.
For free no obligation advice on all debt solutions please click here www.nancollasgreer.com/html/contact_us.html
