Where to begin? When my hubby and I realised that our debts were getting increasingly deeper, I searched on line for answers to the problem. Having found what I thought was a "government managed" debt solution firm I contacted them. (Hanover Sterling) I discovered from them that a) we would have to run a debt management programme and IVA concurrently. b)They in turn put us in touch with X Debt and in time two lots of forms followed. It seemed at the time that Hanover Sterling and X Debt worked together regularly in assisting debtors. As things proceeeded we were informed that, we would have to pay Hanover Sterling a fee of £204 for the first month, and depending on whether we were accepted
by either company further fees were arranged, after completion of forms and acceptance by either company.
The whole process took approximately 2 months to complete and after some discussion regarding the £204 payment to Hanover Sterling, and a warning of going bankrupt from us to Hanover Sterling they agreed to reduce the payment to £200 for the first month. We then had to wait to hear from either company Hanover Sterling and X debt, to see which payment plan we would be accepted on. I have to say that, Hanover Sterling did not discuss the possibility of our going Bankrupt, and the fee we paid was in lieu of any creditors harrasing us. Which meant that any further harrassment would be dealt with by them by means of our passing on demanding letters, or telling creditors who telephoned who to contact at Hanover Sterling as we waited to hear which debt programme would be accepted first. Not very much was done by Hanover Sterling in this regard, and looking back I feel that we were led astray somewhat for the sake of £200.
There was no discussion of the £200 being passed on to anyone. This was purely up front payment to Hanover Sterling to keep wolves from the door while our paperwork was being processed by both firms.
After a few days following the £200 payment, we eventually had word from X Debt informing us that our paper work was now complete and a date set for meeting with creditors. I should say that we were advised our best course of action would be an IVA, as suggested by X Debt. The possibility of bankruptcy was discussed, and we were informed that it would cost us in the region of £1500 for both our names to be registered bankrupt. As we did not have that type of money and could not possibly raise it, there was no further discussion on that matter. We still feel that to find £1500 for bankruptcy would be difficult, that is until I found this site and am beginning to realise it may not be as impossible as I first thought.
Prior to our IVA being accepted and finalised a monthly payment was agreed on for the next 5 years, taking into consideration our financial situation. (Incomings and outgoings) Although, we knew things would be hard for us, and contingency plans for unexpected expenses were overlooked by ourselves and X debt, we let things progress. Our only thought was that we could not afford to be made bankrupt and we felt with the pressure of all the outstanding debt, the IVA as explained to us was the only way forward. We needed to pay off the debts and we needed someone of professional standing to help us.
Since making our first payments and now the dust has settled so to speak, as I have already stated in earlier comments, we have realised that this is going to be a struggle for us. We both feel the pressure of meeting the payments. Which on reflection, leaves us very little money for our daily needs, no way of putting funds aside for any unexpected expenses. Every penny has to be accounted for and I find myself doing mental sums when I go shopping for food, and utility bills once a week.
Added to which, it now feels that instead of feeling relief and feeling better about paying off our debts, we have exchanged all that for the worry of meeting our monthly payments. Keeping ourselves fed, and paying for our utility needs, wondering how we will afford to pay our vehicle tax and Mot, and can we afford £10 worth of diesel this week, can we affordto treat our grandson, what will we have to sacrifice this week if we do? And no light at the end of the tunnel for at least 5 years.
I dont know what makes sense any more and the more I worry about it, the less it makes sense.
