Hi,
We have been advised by CCCS to do an IVA. We have a shared ownership house, we own 50% at 70k (full value 140k). We have a £500 plasma TV (5 years old) and 2 cars, one is a '94 astra worth £200 the other is a '97 celica worth 1k. Apart from an xbox360, we have no other assets. Will we lose any of these if we choose to do an IVA?
Many thanks indeed
Regards
Marcus
Hi Marcus and welcome to the Forum.
Depending on your outstanding mortgage these assets would be exempt in bankruptcy, never mind an IVA. Given that you have a shared ownership property it is highly likely that you would have to do a six year IVA as it is almost impossible to release equity while the property is in co-ownership.
What is the value of your property as bankruptcy may be a better option. It could be worth taking another opinion as it seems even now you are unsure of what the process entails.
As Michael says, may be worth taking a second opinion.
Visit www.iva.com for a list of companies and reviews. Give one or two a ring and the advice is free and impartial.
May help you to sort out the best option for you.
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
Thanks folks, the house is worth 140k, we own 50% and our mortgage is for 70k (with £69xxx outstanding).
We will try an IVA, and today I have been provisionally accepted for a First Direct One Account. Is this account allowed when doing an IVA? I think it comes with an overdraft, but I don't want any credit at all, and wont use that overdraft.
Should I continue opening this account, or should I open a basic account somewhere? My issue with that is having a debit card to use online etc. That's all we want, a visa debit, or a Maestro debit card. Nothing more.
Another question if you please : My wife might be able to start doing some work in a few months time, so if she does (it will be self employed) do we get to keep any of the extra income? If the income is variable, such as £100 month1, £0 month 2, £400 month 3 etc.
I'm actually worried that our creditors wont accept an IVA proposal as we are paying the minimum, but we are starting to get charges for late payments. Is it worth making token payments on all the debts for 3 months before submitting an IVA proposal? I ask as if we get rejected, we are stuck for 12 months. What do we do if that happens?
CCCS have calculated we have £200 available for the IVA, and in 6 months time, we will have £300 available. We owe 31k on unsecured debts.
we are in an iva and have been for the past 5 years our iva is over 6 years because dfd said our creditors wanted63pence in the pound then that was changed when it went to court to 80p in the pound the minimum payment was going to be some where in the regin of 900 per month. so we accepted an extra year. when your in an iva you will have no control over your money the iva company will control that. also check if your iva is to run 5 years after 4 would you have to re mortgage to make the full payment and if you do go into this iva please read the very small print. and not what your told in a telephone conversation. have you tried national debt line to see if they can help or a debt management program with c.a.b can set up with your creditors. and IVA IS not the easy way out trust me if i had my time over i would not of entered into it. as these companies are very expensive and charge highly for their service. dfd are charging us between 9 and 10 thousand pounds for this iva why add more money to your debt please think really hard. p. s. we have a basic account with natwest bank its called a step account and we have a debit card which you can use in most places. no cheque book no over draft as dfd wont allow one. you have to inform they if you do get any extra money as this will be made available to your creditors. you will get a basic amount to live on anthing else over that amount you get to keep 40% and your creditors will get an extra 60% to go towards your debt. every month on top of your basic payment. i hope this advice helps you think before you make this important step.
But if they do nothing they will be adding to their debt in the form of interest & late payment charge.Better to get advice & take some sort of measures be it bankruptcy or Iva if they are struggling.
Hi Marcus and welcome to the forum. i would certainly put some feelers out regarding what is the best way forward for you, have a word with Melanie who you'll find listed under www.iva.com. I have been in my IVA for 3 years now with a larger company and if i known then what i know now i would have gone with someone like Melanie. Good luck with whatever path you choose, take care and be safe, 5/6years seems a long time but it goes very quickly.
Om shanti, namesté, good luck to all who are embarking on the IVA journey, it isn't always an easy one but the outcome is the best.
IVA COMPLETED August 2012, received Completion certificate 18.4.13.
It may be worth getting a new account as First Direct and their parent HSBC are known for closing the accounts of anyone in an IVA. I am surprised the CCCS did not advise you of this so check in case they have any special arrangements with HSBC.
The CCCS do not do IVAs for the self employed as far as I am aware so be careful about entering an IVA if your wife is to go self employed. The rules are totally different from PAYE workers and any income she receives is not actually profit and until the accounts have been submitted it would be very difficult to increase the payments. There are also HMRC responsibilities so ensure whatever firm you use understands the differences between PAYE and self employment and does not leave you in a worse situation.
Hi,
I agree with all that has been said. I entered an IVA before knowing about this forum. I have been in the IVA for nearly a year. It was very difficult to start with but I posted my problems on here and my IVA company posted asking me to contact them. Since then they have been great and I'm glad I did it. I have a Natwest Step account and have had no problems at all (much better than Barclays!, who I was wth for years). Good luck with it.
IVA started Sept 09. Glad to be on the way to being debt free
Please take a look at www.iva.com for a list of companies and some reviews as posted earlier in the thread, take case specific advice 2 or 3 providors to ensure impartial advice. Our professionals do come highly recommended too.
I can also personally recommend the Natwest Step Account as being a good account. All the best x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
We're almost halfway through our 60 months (although it could well be extended) but I have to say that it is the best thing we ever did. We may be living on a budget, but at least we have money in the bank at the end of the month and don't mind having to economise.
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
That is so right Helen. Doesn't matter if it's pence you are in credit, as long as you are!
I know you had it harder than a lot of us on here, but you stuck with it and have come out the other side.
Anyone looking in and wondering what to do should take inspiration from your journey, and all of the other posters who have completed.
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
It doesn't sound as if you have actually received much advice on how the IVA will operate once it has been accepted by creditors, so I would make sure that you actually get to speak directly to the IP so you can ask any questions but more importantly that she can make sure that you fully understand all implications.
It definately sounds to me as if an IVA is a solution for you, but whether it is the best one can only be determined by you directly.
Sorry for the delay, and thanks for all the fantastic replies.
I am convinced an IVA is the best solution for me, but like a kid at Christmas I cannot wait to get it started.
I can't do Natwest, Barclays, Halifax (basically HBOS and Barclays group).
I have been provisionally accepted for a First Direct 1 Account. That comes with an overdraft (which I will set at....ZERO). But is this allowed on an IVA? Please advise on that one....
I work 4 days on 4 off, 12 hour shifts until the early hours, so I wont get to sort anything out until next week now.
What should I do while I'm getting this all started? Should I make token payments to all my creditors? Or should I pay up everything as usual, leave myself with NOTHING (I have 2 weeks before payday and have £70 left in the bank - I spend 50 a week on fuel alone as I work 30 miles from home - which I MUST do as I get 30/40% better salary).
Could I please have advise on the bank account question and what to do with next months salary?
I wouldn't recommend a First Direct account as they are part of HSBC who have a policy of closing the accounts of anyone in an IVA.
I'd recommend the Co-op Cashminder account as they are IVA friendly. It can be opened in a branch or on the phone. Don't worry if you don't have a local branch as you can do all your day to day banking at the Post Office.
Regarding your next salary - your IP should advise you what to do as some people are advised to stop payments altogether while others are advised to make token payments. There's no point making payments in full and leaving yourself with nothing though.
