I managed to accrue 52k debt in the last three months, from bad market trading.
I've also lost all 5 years' savings plus 30k of my parents' money I was keeping until they needed them.
I did the I&E and now have the Creditors Meeting scheduled for 11 October.
My main creditors are HSBC and AMEX. Now, my concerns are as follows:
Wed Sep 25, 2019 8:43 amHay wrote:
Hi. It's my first time posting on this forum.
I managed to accrue 52k debt in the last three months, from bad market trading.
I've also lost all 5 years' savings plus 30k of my parents' money I was keeping until they needed them.
I did the I&E and now have the Creditors Meeting scheduled for 11 October.
My main creditors are HSBC and AMEX. Now, my concerns are as follows:
sdfsdfsdf
My debt happened too quick, too recently
There are purchases of luxury goods under my credit card statement. I don't own any of them, they were from an unofficial cash job I did for a company where they would pay me money into my account and I would use that to buy goods and hand them to them. The thing is, the creditor is not going to know that but see me keep buying luxury goods to end up in debt.
I withdrew 600 pounds in cash the night before I submitted my IVA proposal.
I am worried sick and every waking minute is a torture for me.
Do you think the above will cost me IVA approval from going through?
Please also let me know how to delete/edit posts on here. I pressed enter and the post got put up incomplete.
It will depend on the attitude of each creditor as to how they will view the circumstances. They may ask questions, they may not. Has your prospective IP said anything about this ?
I would also be wary of the luxury goods you purchased and handed back to the company giving you the money for this --- it smacks of a money laundering operation. Hopefully you will come out unscathed by this, but, please, do not get sucked into a similar scheme again.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
The thing is, I raised this issue of buying luxury goods during the I&E with a representative, and she told me not to mention this to the proposal team at all.
She said the reason for this is as calls with them are recorded and monitored and it just complicates things with the IVA application.
I got worried upon submitting the signed proposal, so asked her again if I could speak to the Meetings Team to discuss this, but she said not to raise it with them and that the Creditors will not be looking at where I spent money on.
Reading web pages about why might IVA get rejected, I came across part about reckless spending, so I am very worried.
With regards to my prospective IP, his name was on the document but I was told that I would never actually be speaking to him at all but will be dealing with the Customer Care Team once IVA is approved.
I was hoping I speak to one dedicated person as I am scared of having to speak to a totally new person and feel agitated to tell them the story and get let down etc.
But at the end of the day, I guess this is a happy worry as I don't know whether it would be approved in the first place.
P.S. My IVA company is putting me forward for £500 monthly contribution. I outlined there may be difficulties and she told me to make a few contributions then raise it with the Customer Care team.
I agree with Lisa and am worried at the line your provider is taking, as well as the isolation of the IP (becoming more prevalent with firms these days, but morally incorrect).
What 'difficulties' do you envisage with £500 per month payment ? If you feel unsure you can pay this amount, do not proceed as the arrangement will be doomed to fail. Then, as well as being back to square one with the debts, you will have a failed IVA blighting your credit record for the next 6 years and, possibly, unhelpful and unwilling creditors to fend off.
I suspect the person you have been talking to is getting a fee for IVA's introduced and cares little beyond that.
Regarding the luxury goods, I would agree that you do not bring any attention to the matter, unless they mention it -- it belongs in the 'sleeping bear' category.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Basically, I have legal fees (immigration + lawyer) coming up mid next year and need to somehow put together £4000.
Unless I manage to save, this means having to borrow from acquaintances - which I believe is not allowed under IVA.
I've mentioned this to the I&E and initial contact representative, but she told me to not mention it during the application.
I'm guessing it is because they worry it might get rejected. My I&E were heavily scrutinised too, cutting my travel expenses for work as I have no guarantee of those commutes.
I said I would provide a letter from work but it is not good enough as I do not buy monthly tickets to show for it, but through cash/card payment. She said it was at the best interest that I can get this application through without rejection.
Is it right that I&E could be reviewed and payment contribution changed part way through the year, as and when?
So many questions, sorry!
Two weeks and two days left until the decision time.
I am not eating or sleeping right and barely functioning. Can't seem to take my mind off my mistakes and IVA result for a moment.
If you have no assets, have you thought about bankruptcy?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi Kallis3, I did consider it but it does not look viable to me.
I started looking into Bankruptcy when the IVA company was very much set against this option.
Digging in, I could see why, as there is just one off fee of £680 involved and all the debts are written off/most written off at a payment for 3 years, as opposed to 5 or 6 years under IVA. All and that as IVA company would not get a penny out of it.
However, looking further into it, I realised it is not going to work for me, as I am currently on a Working Visa to stay in the UK and have to apply for Permanent Residence and a Citizenship subsequently.
I came across a document that I would not be able to be accepted as a Citizen + any applications I make may get rejected.
Also the temporary tax code of NT would mean I pay no Income Tax until next tax year, and it would mean invalidate PR application.
I so wish that this was an option for me.
I had completed all the documentation for Bankruptcy online then to realise this, then had to submit the IVA application.
Yes, it would seem that an IVA is preferable to BR, in light of the immigration issue. However, it casts further doubt in my mind as to the motives of your provider. Everything you have said would make me want to run in the opposite direction !
I can see that they are trying to improve the chances of acceptance in view of your spending recently --- but their attitude seems a little too close to the edge.
All that said, I hope it works out for you ---oh, regarding the upcoming legal fees. Under the terms of the IVA friends and family cannot lend you the money, but they can give it to you --- if, after the IVA has ended, you wish to pay them back then, it is up to you. If they do 'give' you the money it can't go through your bank account though, or it could be seen as a windfall and taken for the IVA.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
My provider also said that I could open a completely new bank account and do whatever I want - save, borrow and give money back to them etc. She said the IP/Customer Service won't find out if I do not disclose the existence of the said bank account.
Sounds a bit dodge and a grey area, but is it something that happens and gets overlooked?
My creditors are more or less 50/50 from HSBC and Amex. Does anyone know what are the acceptance rate these days?
I've been spending days and nights on this forum, going through all posts from over a decade ago to find out.
I know it's a mixed bag and it is unpredictable but it's something for me to hang on to/not build my hopes up too high.
From what I can see, Estimated Dividend to Unsecured Creditors is at 42.
Also, if the IVA gets rejected, is it possible for me to reapply?
My provider said there would be a 6 month waiting period.
I'm guessing it would be difficult unless I offer them more money in the pound, which I would struggle.
In light of that, would it be possible to go on DMP then reapply for IVA after a few months? Does it have to be by the same provider?
The other thing is, I was asked to stop all direct debit orders to making the payment to the loan and the cc.
If IVA gets rejected and the deadline for the payments have passed, wouldn't I be in more trouble?
Should I be contacting the banks to let them know I have an ongoing IVA application and see if they can understand?
The worry is eating me up and I don't know how I would get through the next two weeks.
