Am I doing the right thing?

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maria360

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Post by maria360 » Wed Jul 15, 2020 7:52 pm
Hello everyone, I had an email yesterday saying that my IVA Virtual meeting will be held on the 28th July. Naturally, the nerves have now hit! But i am naturally an over-thinker, and beginning to panic about whether i am doing the right thing.

A little of my history, me and my husband split up a year ago, and I moved out. And since then, I have been struggling to keep up with my debt payments on a single income. We have 2 children together.

I have a total of £10,419 in debt, to 7 creditors. The proposal has been put forward at 8 monthly payments of £193 and the remaining 52 months at £100. This is to do with paying council tax. So my IVA dividend is 29.7p

My creditors are:

Captial One
Freemans Grattan Holdings
Home retail Group
Llloyds Bank
Nationwide
Simply Be
And my local council

Do any of them ring alarm bells as being cereditor who refuse often?

I haven't told ANYONE that I have applied for an IVA. My only worry is that one day, I do plan on buying my own property. Obviously after the 6 years is up. And I'm also worried about the restrictions I may encounter along the way. Has anyone ever come across something that you didn't realise would be an issue before you applied for an IVA?

Sorry for the ramble! I have been reading this forum for a while, and have found it very helpful so far.

Many thanks in advance,

luluj

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Post by luluj » Thu Jul 16, 2020 5:48 am
Only natural to worry, but yes I believe you are doing the right thing.

Once approved look at it as a 5 year loan and count down your payments. They will go quick and before you know it you will be in year 5.

Don't get me wrong, living an iva can be challenging and does require sacrifices to be made - less money for fun activities, little money for gifts at birthdays and Xmas, but ultimately the end result is debt freedom and a new start to life.

Let us know how your meeting goes.
Sharing from experiences of dealing with debt

There is a solution for everyone .... Just need to stay positive !

Look at my blog "All I wanted was a baby"

abbiesmum2003

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Post by abbiesmum2003 » Thu Jul 16, 2020 7:57 am
Beat thing we ever did.
Have a read through past posts on here and youll find people felt same as you do and the success stories.
It will help raise awareness of potential issues that could arise and solutions.
Understand your responsibilities and communicate with your IP if change incircumstances arise.
Agree to look on it as a loan over 5 years. You wont have creditors chasing you or demand letters land in door mat. Its protection and the path to debt freedom.
it can be difficult at christmas ans birthdays. Youll find ways to budget and manage your funds. it does help to confidenin some close friends/family as they can then supoort you and wont oressure for days out or expensive trips etc. I told a friend who turned out to have same problems and an iva. it was great relief to us both.
An iva is a good route out of debt and to reset your financial life. Its a journey of learning to budget save and plan. We had 3 children during iva. Lots of christmases birthdays holidays etc but it can be done.
Best of luck and always someone here to help and guide.

Foggy

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Post by Foggy » Thu Jul 16, 2020 8:07 am
I can add nothing more to the brilliant posts above, save to say that you are not alone.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

maria360

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Post by maria360 » Thu Jul 16, 2020 8:34 am
Thank you all for your helpful replies.
I should probably know the answer to this, but my car is going to need replacing next year at some point (she's an old girl now, and things are starting to go wrong more often) Is there a limit on what i would be able to own, value-wise? My mum and dad will probably lend me the money and expect me to pay it back, which is fine. But i don't want to get in trouble and have it taken away.

Oh and also, debts repayments are coming up, and i'm getting asked to pay things, should i continue to pay them up until my meeting? I've already missed one this week due to my rent being due and all my money going on that. OH! The stress.

Thank you again.

Foggy

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Post by Foggy » Thu Jul 16, 2020 8:56 am
Car - wise .... your parents cannot lend you the money to buy a car and you cannot pay them back during the IVA --- that counts as further debt and is a no-no.

They could, as far as the IP is concerned, purchase a car and allow you the use of it, or gift you a modest vehicle. If you chose, privately, to give them any money each month, from your agreed allowances ( you will not be allowed to include this as an expense) then that is between you and them.

Repayments whilst waiting for the meeting can be paid as usual, you can make token payments or none at all. There are pros and cons either way. I stopped making payments at all, but had to field phone calls. You will get the calls even if you make token payments.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

abbiesmum2003

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Post by abbiesmum2003 » Thu Jul 16, 2020 10:03 am
Have you opened up a new bank account with a non-creditor and transfered direct debits for things that will continue once in IVA?
We stopped paying all creditors and saved it to create a kitty in the new bank account.
Some people make token payments. Dont think theres a right/wrong.

maria360

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Post by maria360 » Thu Jul 16, 2020 11:13 am
I have yes, and i thought i had changed them all over, but this one went out of my old account, so now i'm over-drawn (story of my life).
If i get refused, then i guess i'm in even more trouble and the missed payments stay on my file anyway!

Foggy

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Post by Foggy » Thu Jul 16, 2020 11:43 am
Thu Jul 16, 2020 11:13 ammaria360 wrote:
I have yes, and i thought i had changed them all over, but this one went out of my old account, so now i'm over-drawn (story of my life).
If i get refused, then i guess i'm in even more trouble and the missed payments stay on my file anyway!
Different schools of thought : missed payments do demonstrate your inability to pay .. which is what you are effectively telling them. If the IVA is rejected you can look at something like a Debt Management Plan ( DMP) --- Stepchange are good at those --- where you make reduced payments over a term long enough to pay the full debt.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

maria360

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Post by maria360 » Thu Jul 16, 2020 12:21 pm
I never thought of it that way around. I've been so concerned about missing them in the past, that I've often skipped the weeks food shop to pay them. Its a good job my kids LOVE beans on toast!

abbiesmum2003

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Post by abbiesmum2003 » Thu Jul 16, 2020 3:32 pm
Bless you
Dont worry. We missed payments while processing iva, lots have done and OD got bigger etc it all just gots mopped up when final figures submitted.
As long as you dont go out and blow full credit card limit on spending you shpuld be ok.
just use the new account and try to stick to the budget thats been set. Any moneybyou would have paid on loans etc wont now go out. Theyll try and take from old account and get blown out but it will get sorted. Is the overdraft included in the IVA?

maria360

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Post by maria360 » Thu Jul 16, 2020 3:45 pm
Hi abbiesmum2003,

All credit cards are maxed. again. I try and put big amounts on them, and then i need the money again for food and insurance and just things to live. It's so disheartening. I feel so happy and positive about paying them, and then the fees come out and i need to use the money, and it's all back to square one.
I don't have an overdraft on the account that is no over-drawn. So i will now be charge a fee. But pay day is tomorrow, so i can pop the money back in. But i will get a charge for the 2 days I've been over-drawn.
Its just like one huge never ended hole of debt that gets bigger each month :(

I just hope i am not refused. I honestly dont know what i will do.

kallis3

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Post by kallis3 » Thu Jul 16, 2020 3:46 pm
I stopped all my payments. I also used to draw money out of the hole in the wall and then go into the bank and make my minimum payment on my credit card.
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

maria360

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Post by maria360 » Thu Jul 16, 2020 3:49 pm
Hi Kallis3,

Was that until the IVA kicked in? Sorry if that's a silly question. lol

kallis3

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Post by kallis3 » Thu Jul 16, 2020 4:22 pm
No - it was beforehand.
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
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