wondering if you could help with a little advice

[james.g]

Hi
I was wondering if you could help with a little advice.
we have been struggling with debts for a little of three years now gradually growing to now 64,000.
My wife and I both work, me full time shifts and my wife 25hrs a week starting at 0600 in the morning mon to friday.
we have contacted Payplan and have been advised to do an IVA or DMP.
here are my details followed by my question.
my income 2200
wife income 1200
child benefit 78.43
building insur 40.00
mortgage(int only) 610.00
secured loan 758.00
council tax 114
gas 60
leccy 60
intenet 15
phone 40
water 24
tv lic. 11.50
clothing 60
housekeeping 400
child care 350
hair 24
medical 25
pet 20
car insur 100
car maintenance 40
tax/mot 40
petrol 108.33
work union 30.00

totals in 3478.43
out 2929.83
available for IVA 548.60.

As I said before we both work shifts so need our cars as we use them to get to and from work and the child minder before the trains have started running.
The child care is paid to a friend of the family who often has to look after my 4 yr old son from about 5am in the morning.
The child minder is not registered as such so is paid cash. The majority of which we have borrowed from family on a monthly basis so does not show on my or my wifes bank statements.
How are the creditors going to want me to the prove this payment?

We have negative equity in our property and these are our creditors
mine:
halifax cc - 13.5k
mbna 6k
barclays cc 4k
citi card 1700k
lloyds cc 3k
ge capital 2700k
halifax OD 2500k

joint
halifax OD 8k
halifax loan 22354k
wife
next directory 800
halifax OD 150

We have been advised to go with x2 IVA's
What do you think the chances of success are being that a big majority of the debt is to the halifax?

Thank you very much for your help and advice

[catullus]

I would say that your chances are excellent, based on your creditor spread, and I really don't think that a DMP would be a good choice for you.

I wouldn't get too hung up on the issue of proving your child minder costs, at the moment, because I am sure that there will be a way for you to provide some evidence of the payment.

One very important piece of information that you missed out, however, which could influence what I've said above, what if any equity have you got in your house and would you be prepared to remortgage it (if equity allows) towards the end of the IVA because your creditors will expect you to agree to this.

[MelanieGiles]

I agree with Catullus that this definately ought to work as an IVA, and given that you have a fairly high mortgage and secured loan payment, I imagine that there is little equity in your property?



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

[james.g]

Thankyou both very much for your quick reponse to this.
I think we have about 15k negative equity in the house but I guess this will be subject to valuation.
Have spoken to the child minder this morning and she is going to give me a letter of confirmation, so hopefully this will suffice.
Have received the authorisation to act forms this morning and will get them sent off today.
We have been advised to make only token payments to all non secured debts from here on out.
I must admit, that is a little bit daunting but if that is the advise I will take it ( unless ofcourse you guys disagree!!).
I am going to open new basic bank accounts with the natwest today and get our wages payment transferred ASAP.
In the mean time how do I go about getting my payments to the Mortgage,secured loan and other bills as they come from my existing bank account that I was going to draw all wages out from because the other things that I have told to make token to reside on that account?
Once again than you very much for your prompt and knowledgable replies.

Best Regards.

[MelanieGiles]

As you have already appointed an IP, you need to ask them about what to do regarding ongoing bill payments. Usually when you open a new bank account, the new bank will deal with the switiching of direct debits and standing orders.

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

[aguise]

Hi James
I just moved all the standing orders and household bills to the new account and had no problems.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[Adam Davies]

Hi James
Just to add that you have the makings of a successful IVA.
Just be sure to stick to the advice of your IP regarding token payments and spread them evenly,for example £1 for every £1000 owed etc.Do not be bullied into any additional payments from creditors whilst your IVA is set up.
It does feel strange at first not paying your creditors in full but at the end of the day you are insolvent and have addressed the issue responsibly.
Good luck
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

[james.g]

Thanks so much for everybodies support and advice, it really helps at such as cr*&y time.
Had the R3 call today and opened the account with the natwest, ordered redemtion statements and loan agreements.
will keep you posted
James

[james.g]

Proposals receved today, seem resonable, signed and returned to Ip.....Watch this space...

James
www.photoslidedvd.com

[mikebdomain]

Good luck James

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[bagpuss]

best of luck James...(there is a blog section on here...would be great if you were able to do one)...xx

Angie xx


My IVA Story......http://bagpuss.blogs.iva.co.uk/2007/09/ ... iva-story/