Considering an IVA

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Loopy81

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Post by Loopy81 » Mon Aug 16, 2010 1:53 pm
Hi All, my husband and I are considering an IVA but I am a little cautious. We owe approx 23k and since I was made redundant in Mar 2009 we have struggled to make payments. We have, sometimes a day or 2 late but we can longer afford to pay utility bills and buy food so we realise we have to do something. I have checked out the CCCS website and we have a surplus income of about £160 per month and they suggested an IVA. We have asked them to call us so will have to wait and see what they have to say.

In Dec I cashed in my premium bonds and paid 6k off the credit cards, but crashed my car on new years day and took the 6k back to buy a car. We have 3 small children and live in the middle of no where. I am the only driver in the family, therefore losing the car which is worth about £7500 is not an option.

I am so worried we are not doing the right thing and perhaps a DMP would be a better plan. Doing the calculations it would take about 12 years to pay off providing they freeze all interest. I am not sure if I want this big black cloud looming over us for that long.

Any advice would be welcome.
 
 

Loopy81

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Post by Loopy81 » Mon Aug 16, 2010 1:55 pm
Forgot to add. We are going to open a new bank accoung this week and start tranferring things over to that before the IVA goes through. Is this the correct thing to do?
 
 

kallis3

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Post by kallis3 » Mon Aug 16, 2010 2:03 pm
Hi and welcome to the forum.

You are right to explore all of your options before making a decision.

Why not speak to a professional? Either contact one of the experts who post on here, or visit www.iva.com for a list of companies and reviews. The advice is free and impartial.

You are doing the right thing by changing bank accounts. Make sure though that the new bank is not one of your creditors or linked to them.

The Co-op come highly recommended on here. You might be able to get a full account as you're not in an IVA yet.

If you're really struggling that much, you need to do something as soon as possible.
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
 
 

Loopy81

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Post by Loopy81 » Mon Aug 16, 2010 2:24 pm
Thanks for the welcome, I think I will need to speak to someone soon, before I go crazy. I think I am nervous as it is the unknown. We are considering either a barclays or Lloyds TSB account, as these are the banks that have accessible branches to us. 12k of our debt is to Natwest, 5.5k to Halifax, 3k to Virgin and then a couple of grand dotted here and there. I am very aware that our surplus income is quite low so I am not even sure of our chances of getting an IVA approved. Either an IVA or a very extreme diet plan for me ;-)
 
 

kallis3

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Post by kallis3 » Mon Aug 16, 2010 2:28 pm
It is low, but we have posters on here with IVAs that also have low payments. Once you speak to someone then you will get a better idea.

Doesn't matter with the Co-op that you don't have an accessible branch, you can pay things in via the post office.
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
 
 

Michael Peoples

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Post by Michael Peoples » Mon Aug 16, 2010 2:29 pm
Hi Loopy and welcome from me too.
Your surplus income may be low but does not debar you from an IVA. It is more important that the IVA is affordable and will last five years. If you try and cut back 'to make things fit' there will only be problems further ahead.

Barclays would be fine as would the Co Op but Lloyds and Halifax are part of the same group. Ring an IP firm for some free advice rather than sitting around worrying and hoping for someone from the CCCS to give you a call.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

FormerlyST1100

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Post by FormerlyST1100 » Mon Aug 16, 2010 2:32 pm
Dont' worry about your surplus, my IVA has just been agreed recently via CCCS at a monthly payment of £129 and a total debt of around £24K-£25K.
As Kallis has said, I would advise to open the bank account sooner than later and transfer your income and payments to it, I applied to Smile (Co-op) online following reading advice on here before going for the IVA.

Good luck whatever way you choose, the advice from the experts and others on here is priceless.
Last edited by FormerlyST1100 on Mon Aug 16, 2010 2:33 pm, edited 1 time in total.
 
 

missy80

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Post by missy80 » Mon Aug 16, 2010 2:39 pm
Hiya

I know how hard it is but speak to someone, 3 companies if you can manage it - you'll feel loads better sharing. I feel better just coming on here tbh.

The dividend in my proposal is quite low comparitively, but it is all individually done and all about what will work for you.

Recommend the Co-op too. It's amazing not to have an overdraft (apart from that massive one festering away with HSBC - oh well!)

Welcome from me too, M80xx
 
 

Loopy81

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Post by Loopy81 » Mon Aug 16, 2010 2:47 pm
Thanks for the advice will have a look at the co-op. I will pluck up the courage to talk to someone at some point I'm sure. As we are applying for it jointly I have put my husbands name down for them to contact so they may well have done so already on his mobile. I figured I have been dealing with our poor finances for 8 years and have made a right pigs ea of it all, so he can have a go now lol
 
 

kallis3

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Post by kallis3 » Mon Aug 16, 2010 2:58 pm
I still deal with ours, even though I kept everything from hubby when things went pear shaped.
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
 
 

Tina Shortland

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Post by Tina Shortland » Mon Aug 16, 2010 3:02 pm
Lol! Welcome to the forum loopy81 - please don't go crazy - its not worth it! Trust missy80 - once you (or your hubby) have chatted to a few companies you will feel a lot better and the unknown will not be anymore.

So you know what to expect, any of the companies you call will help you pull together a realistic expense budget, talk throuh your circumstances to understand more (don't worry we have all seen far far bigger debts than yours)and then they wil talk through all the various options open to you so can make the best chice to suit you both.

Use this forum as much as you need to, everyone on here understands what you're going through and will be there to support you along the way.

Regards,
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.

If you’re looking for effective debt related information, articles and news, then go now to our on-line advice service at www.debtadvicetv.com

If you’re ready to ask us for specific advice or help, then get in touch at www.call-me.debtadvicetv.com so you can start to free yourself from the stress and anxiety of overwhelming debt.
 
 

Loopy81

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Post by Loopy81 » Mon Aug 16, 2010 3:06 pm
I doubt much will change it that matter to be honest I am too much of a control freak. I have looked at the co-op and as I am not yet in an IVA would it be ok to apply for a current account, or shall I just phone and open a normal basic account. Ooooh I don't like confusion.

Also I have £1150 floating around NatWest bank somewhere, I posted some cheques which have been debited from the other parties accounts but been paid into someone elses. Would it be wise to wait till this has been resolved, as I need to draw the money out to catch up on rent and electricity payments.
 
 

Michael Peoples

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Post by Michael Peoples » Mon Aug 16, 2010 3:23 pm
If you need to access normal funds for everyday spending this is fine. You have to bank somewhere until your new account has been processed.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

missy80

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Post by missy80 » Mon Aug 16, 2010 3:25 pm
Looking on the bright side - it's nice you have someone to share this all with. Hopefully that will make it all a bit easier (no matter who gets landed with the paperwork!)
 
 

kallis3

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Post by kallis3 » Mon Aug 16, 2010 3:31 pm
You can try and open a full account. You may be ok as your credit rating should still be ok.
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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