Advice needed please

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Skn78
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by Skn78 » Sat Jan 05, 2019 7:33 pm
Hi, I'm looking for advice. I'm a married mum of three, my husband is armed forces. I'm self employed but only earn between 400-700 a month. I have a loan for 15k with the same bank that I have a joint account with my husband and a credit card with almost 7k on it. My husband isn't aware of my situation. He has a loan himself for 20k but that's affordable. However I am struggling to pay my loan and the cc. The interest alone on both is £350 a month. A calculator online said an IVA is best for me but what other routes are there? I can't have him find out so I need a solution that won't involve him. Should I open a new bank account before starting any process? The car is in my name so that's another worry. Most grateful for any advice.
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kallis3
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by kallis3 » Sat Jan 05, 2019 7:43 pm
You need to speak to a few companies - I also advise speaking to your husband about this. You will need his support.
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Mrs_Brown
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by Mrs_Brown » Sat Jan 05, 2019 7:54 pm
If you do decide to go ahead with an IVA, I would strongly suggest getting your name off the joint account to avoid impact on your husband's credit rating. Chances are if it's anything like my bank, you will find the joint account frozen the moment the IVA paperwork goes out to their loans team. Also beware of some IVA companies who try to include your husbands income in your income and expenditure, I believe it is PayPlan who do that, regardless of the spouses solvency.
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Foggy
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by Foggy » Sat Jan 05, 2019 8:07 pm
Keeping this from your husband is going to prove nigh on impossible and very, very, stressful! You will need to remove yourself from the joint account and open your own account with a non-creditor bank ( not HSBC or First Direct). This will be difficult to explain.

As you surmise -- the car will also be a problem : Is it on finance ? If so it might be repossessed -- another difficult thing to explain.

I would suggest a word with Payplan (do not use them for an IVA --- as Mrs Brown says, they could well involve your husband ) or Stepchange to discuss a Debt Management Plan. This would last longer than an IVA and would continue until the debt was paid off in full, but, generally, creditors agree to suspend interest, so you only need repay the principal loan.
Skn78
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by Skn78 » Sat Jan 05, 2019 8:36 pm
Thanks for replying I'm very grateful. I already have opened a separate bank account recently with Halifax for an unrelated reason. The car was paid for in cash. That leaves the problem with the joint account though. I really cannot involve him, he's mentally fragile and had some serious health issues last year so I need to face this alone. Thanks again I'll look into payolan.
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Foggy
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by Foggy » Sat Jan 05, 2019 8:43 pm
As long as the car is a modest vehicle, suitable for your needs there should be no problem. But, sometimes in an IVA, creditors will ask the debtor to sell an expensive vehicle and downsize ( the arguement you can use against that, if it arises, is that a newer vehicle is more reliable and less likely to cause problems later on in the IVA).
Skn78
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by Skn78 » Sat Jan 05, 2019 9:37 pm
Okay well that's a relief at least. In terms of a DMP, I've read that creditors will bombard you with letters which I'm assuming will be difficult to manage so would not the IVA be preferable in terms of secrecy since I am assuming the IP will take care of them and I'd only be dealing with the IP? Sorry if I'm being stupid but I've never had to deal with anything like this before so I'm very inexperienced. Again you have my gratitude for your much valued advice.
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kallis3
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by kallis3 » Sun Jan 06, 2019 9:47 am
You will most likely deal with a case supervisor and paper work will need to be done so postal letters may arrive. You will have a creditor meeting which will be done via phone and also an annual review where you will need to put a new I&E in.
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Foggy
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by Foggy » Sun Jan 06, 2019 10:50 am
A DMP is an informal arrangement and the creditors are able to contact you. But, in a well arranged amd well managed DMP mail arriving on the doorstep should not be overwhelming. As Kallis says, even in an IVA there will, in the initial phases, be some physical mail, which should peter out within a couple of months as systems catch up.
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Lisa Thomas
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by Lisa Thomas » Mon Jan 07, 2019 9:53 am
You asked what options are available to you - watch my short video here as a starting guide:

https://youtu.be/TgalT1vhn6M
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