IVA query

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marvinmoomin77
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by marvinmoomin77 » Mon Jul 31, 2017 7:36 am
Hi. Just found this forum and have a question for any experts.
I have been spiralling into debt for a number of years and took out a large consolidation loan earlier this year with a fairly high interest rate.
However. I am really struggling to make ends meet. I have several creditors and have even gone down the route of payday loans to get me through months at times.

My question is, because my large loan is not very old, will this make it less likely to be approved for an IVA?
I really want to get my finances in order and am willing and probably able to pay around 50p in the pound. I just don't have anything left each month and it's just causing me to spiral further into debt.
Are creditors less likely to approve an IVA if the debt is quite New? I am really struggling and the other (worse case) scenario is to go bankrupt which is the last thing I want to do.

I want to make every effort to pay off as much as is affordable. Will this be looked on more favourably?
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kallis3
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by kallis3 » Mon Jul 31, 2017 8:28 am
Hi,

Not necessarily be a problem, however, you cannot dictate how much you will pay - your IVA company will decide that based on disposable income after normal household bills are paid.

I suggest you speak to a couple of firms for advice. Some post on here and you can always give Vincent Bond a call initially. Advice is free.
marvinmoomin77
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by marvinmoomin77 » Mon Jul 31, 2017 8:47 am
Yes I understand that. I was not dictating what I would pay, I know from researching that the amount payable will be decided by an IVA company based on my income, but I have just done some rough figures and reckon around 50p in the pound would be affordable.....
My only concern is as I mentioned that I have a relatively new loan (from this year). I took it as consolidation with the best will in the world, but have realised that this is just leading to more problems.
I want to get all my debts under control and into one manageable payment. I'm hoping that the newness of the loan doesn't have a massive adverse effect.
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Lisa Thomas
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by Lisa Thomas » Mon Jul 31, 2017 8:53 am
The amount payable is based on what you can afford after allowing your reasonable expenses and creditors decide on it - its not actually dictated by the IP.

50p/£ sounds attractive on paper but really depends on what the alternative estimated outcome in Bankruptcy would look like to compare it to.

The 'new' creditor might feel aggrieved enough to vote against any IVA proposed bt again depends on the alternative and what they would get in a DRO/BKY etc.
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Michael Peoples
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by Michael Peoples » Mon Jul 31, 2017 8:56 am
The newness of the loan should not in itself cause a problem. I have had clients gamble loans in the tens of thousands and not make a payment yet their IVAs have been accepted. Your IP may ask for a breakdown of which creditors were repaid from the loan but this would be more for background purposes and I see no reason why the IVA would be rejected.
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Foggy
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by Foggy » Mon Jul 31, 2017 9:06 am
As above, the newness of the loan ought not be a problem. But, does it give the new creditor a lot of voting power --- you need 75% (by loan amount) of those that vote to say yes.

50 p in the pound id a good offer -- but, as also mentioned above, the creditors will compare this and vote for what they view as the better, workable and affordable return.

Aside from the wish to repay as much as you can, what are your objections to BR ? Do you have assets to protect ?
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Michael Peoples
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by Michael Peoples » Mon Jul 31, 2017 9:10 am
It may be an issue who the loan was with more than when it was taken out. Some loan companies block IVAs regardless of when the loans were taken out so can you say who you borrowed from?
marvinmoomin77
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by marvinmoomin77 » Mon Jul 31, 2017 10:40 am
Foggy wrote:
As above, the newness of the loan ought not be a problem. But, does it give the new creditor a lot of voting power --- you need 75% (by loan amount) of those that vote to say yes.

50 p in the pound id a good offer -- but, as also mentioned above, the creditors will compare this and vote for what they view as the better, workable and affordable return.

Aside from the wish to repay as much as you can, what are your objections to BR ? Do you have assets to protect ?

Objection to BR is because I have NO assets (with the exception of a very old car) and so I do not feel it's right or fair to creditors to go down that route. Also my job might be at risk if I went down the BR route as I am public sector.
I want to make every effort to pay as much as is reasonably possible and feel that BR would not allow me to do that. I want to be responsible and not just give up and pay back very little!
marvinmoomin77
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by marvinmoomin77 » Mon Jul 31, 2017 10:41 am
Michael Peoples wrote:
It may be an issue who the loan was with more than when it was taken out. Some loan companies block IVAs regardless of when the loans were taken out so can you say who you borrowed from?

Yes the largest loan is from TSB - it was used to pay off other creditors but hasn't really cleared the problem.
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Michael Peoples
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by Michael Peoples » Mon Jul 31, 2017 10:51 am
TSB should not be a problem and usually support IVAs. Make sure your income and expenditure account reflects everything as five years can be a long time. While I appreciate that you want to repay what you can, affordability is vital and an IVA should not be a punishment. It is a way of returning funds to creditors while avoiding bankruptcy so if you can get the balance right an IVA may well be the most appropriate route for you to take.
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Lisa Thomas
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by Lisa Thomas » Mon Jul 31, 2017 11:02 am
If you have no assets and can bottom out whether it will actually impact your employment (check your conract and consider an anonymous call with HR?) then a BRO or BKY would seem a better option to me.

Morally you might want to put yourself through a 5 year IVA but ultimately BRO/BKY will be a quick fresh start and you would only have to pay income contributions (if applicable) for 3 years max.
marvinmoomin77
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by marvinmoomin77 » Mon Jul 31, 2017 11:04 am
Michael Peoples wrote:
TSB should not be a problem and usually support IVAs. Make sure your income and expenditure account reflects everything as five years can be a long time. While I appreciate that you want to repay what you can, affordability is vital and an IVA should not be a punishment. It is a way of returning funds to creditors while avoiding bankruptcy so if you can get the balance right an IVA may well be the most appropriate route for you to take.

Would they not take a dim view as it's a new loan. I took it out with a really quite high interest rate with good intentions but I've noticed along with all my other creditors I just can't afford to live on the repayments I have to make.
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Foggy
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by Foggy » Mon Jul 31, 2017 11:06 am
marvinmoomin77 wrote:
Michael Peoples wrote:
TSB should not be a problem and usually support IVAs. Make sure your income and expenditure account reflects everything as five years can be a long time. While I appreciate that you want to repay what you can, affordability is vital and an IVA should not be a punishment. It is a way of returning funds to creditors while avoiding bankruptcy so if you can get the balance right an IVA may well be the most appropriate route for you to take.

Would they not take a dim view as it's a new loan. I took it out with a really quite high interest rate with good intentions but I've noticed along with all my other creditors I just can't afford to live on the repayments I have to make.



Many of us took out loans near the end, as well as living, day to day, on credit cards -- it is a normal consequence of becoming insolvent !
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Michael Peoples
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by Michael Peoples » Mon Jul 31, 2017 11:16 am
Foggy is right. Many people try anything to stay on top of the debts and while consolidation can work it often is only a temporary reprieve. I do not see it as a problem and it is certainly not uncommon.
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kallis3
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by kallis3 » Mon Jul 31, 2017 11:23 am
Have a chat anonymously with your HR to see their stance on BR. You would pay back your creditors some money for 3 years through an IPA.
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