IVA query

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marvinmoomin77
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by marvinmoomin77 » Mon Jul 31, 2017 11:27 am
kallis3 wrote:
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.

Very difficult to talk to HR anonymously..is an IVA not an option then ? If I lost my job then I really would be screwed so I don't want to take that risk.
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Michael Peoples
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by Michael Peoples » Mon Jul 31, 2017 11:39 am
An IVA is normally not an issue for a public servant and bankruptcy is rarely a problem either. We have police officers, soldiers, NHS workers, local authority employees etc and it has never lead to job losses. If you are concerned about contacting your HR department you could ask your IP to do it on a 'no names' basis or speak with the union to see if they believe it could be a problem.

There is no reason for your employer to even find out unless it is a requirement of your job and this is a rarity too.
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kallis3
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by kallis3 » Mon Jul 31, 2017 12:13 pm
An IVA is an option - I was a Police Officer and had no problems. You might be able to look up HR on your intranet and see if there is anything on there.
ediunia82
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by ediunia82 » Mon Jul 31, 2017 2:09 pm
I am in identical situation, took consolidation loan as a last resort about 2 months ago , it is from Tesco bank and they are my biggest creditor now(just less than a half of my debt). Creditors meeting booked for 10.08 at 11:30 am... :(
marvinmoomin77
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by marvinmoomin77 » Mon Jul 31, 2017 7:33 pm
I am looking at Payplan right now to see if they can help. I'm hoping to clear a few things off before I apply as I have a couple of payday loans and an overdraft with my bank which I think, with a bit of belt tightening, I can pay off next month (although leaving myself completely skint).
Can I ask if anyone knows if I have to provide bank statement when I apply for an IVA and if so how many? I'm assuming it's probably three months worth which will not be a problem, but do I need to provide more than that? The reason I ask is because if I clear off these two payday loans that is not needed to be included on my IVA. I assume that my income and expenditure will be assessed at time of applying?
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Foggy
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by Foggy » Mon Jul 31, 2017 7:46 pm
One note of caution with your chosen provider --- they are known for assessing disposable income based on yours and your partner's (if you have one) income combined.
marvinmoomin77
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by marvinmoomin77 » Mon Jul 31, 2017 7:51 pm
Foggy wrote:
One note of caution with your chosen provider --- they are known for assessing disposable income based on yours and your partner's (if you have one) income combined.


I am single, I don't have a partner.
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kallis3
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by kallis3 » Tue Aug 01, 2017 6:57 am
If you were to have a partner in future, their income would be taken into account - it's what Payplan do.
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JustPlainStupid
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by JustPlainStupid » Tue Aug 01, 2017 8:03 am
I was in a similar position. I'd taken out a 15k loan with Lloyds TSB. Possibly not quite as new as yours but around a year into a 4 year loan. They were the majority creditor in my case. I went in with high estimations for my expenditure which put my repayments at £780. Barclays wanted more but Lloyds agreed to the £780 so their vote won.

I had a clause in my employment contract which said that I couldn't go bankrupt or make an arrangement with my creditors so these clauses can exist. Luckily, the company I worked for were bought out by a much bigger company and the clause wasn't in the new contract.

I get the bit about wanting to do the right thing. Lose that feeling now. Right now. You made a mistake. Everyone makes mistakes. Nobody has the right to judge you. This is a business for the lenders. It's a risky business. They could have stuck their money on a horse. But the gamble they choose as their business model revolves around lending money at high rates of interest.

My advice would be to buy some time. If you're struggling then it's possibly inevitable that you're going to end up in a situation where your credit rating is screwed. That's possibly not a bad thing as, failing a lottery win, the situation can't go on forever.

What I did is stop paying back all my debts as soon as I had a inkling that I was going into an IVA. I told all the creditors. All of mine - 3 or 4 credit cards and the loan - put everything on hold. The continued to add interest but there were no more calls or letters from that point on.

Ask questions though. Use and abuse the IVA companies to get as much information as you can. Don't avoid questions on the basis that you're afraid of the answer. It doesn't matter who you choose because you may well end up getting shunted off to some shark a few months down the line. Sign up with the one that can actually deliver on the promises they make when you're just a prospect. And get EVERYTHING in writing. Don't believe them on the phone. I had one company telling me that they could get my payments down to less than £400 a month. Guaranteed! Well, until I asked for it in writing and then, of course, it depended on my I and E.

Find out what happens if your circumstances change for the better or the worse. Find out what will happen if you get a decent windfall. If you owe 50k then you can almost double that with fees, etc, if they decide to add statutory interest at some point.

Knowledge, knowledge, knowledge.

And make sure you have a complete list of every allowance you can get. The first one I filled in had lots missing. There are guidelines for each amount. Put the maximum down and let them negotiate. Don't try and play fair, play by the rules. If you spend more than the guidelines, put it down if you can justify it. My train ticket is £558 a month and the IVA company have agreed with that - the creditors might have a fit but the alternative is to get a job in the town that I live and drop a ton off my salary.

Did I mention knowledge? Do not go into this without it.

Just my 2p worth (+15% fees, disbursements and possible statutory interest).

Cheers
Andy
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Michael Peoples
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by Michael Peoples » Tue Aug 01, 2017 8:10 am
Before you decide which firm to use it may be worth looking at independent reviews. Also have a look around this site and see what happens when you want to propose a variation, close the file down or speak with the IP.

https://uk.trustpilot.com/review/www.payplan.com

On their website the only reviews ever seem to be positive 5 star ones but Trustpilot tells a totally different story.

I see no reason to clear the Payday loans as this will only leave you short and make no difference to your IVA anyway. I can understand clearing the overdraft unless there are other debts to the same bank in which case you should open a new account altogether. It normally takes about four weeks for an IVA to be put in place and during this time you would normally not repay creditors. Any extra funds would help with urgent bills such as car repairs and utilities and any remaining funds would act as an emergency fund for when the IVA gets started.

It may be worth you taking a second opinion from an independent insolvency firm or the CAB before you commit to Payplan..
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Foggy
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by Foggy » Tue Aug 01, 2017 8:19 am
JustPlainStupid wrote:
I was in a similar position. I'd taken out a 15k loan with Lloyds TSB. Possibly not quite as new as yours but around a year into a 4 year loan. They were the majority creditor in my case. I went in with high estimations for my expenditure which put my repayments at £780. Barclays wanted more but Lloyds agreed to the £780 so their vote won.

I had a clause in my employment contract which said that I couldn't go bankrupt or make an arrangement with my creditors so these clauses can exist. Luckily, the company I worked for were bought out by a much bigger company and the clause wasn't in the new contract.

I get the bit about wanting to do the right thing. Lose that feeling now. Right now. You made a mistake. Everyone makes mistakes. Nobody has the right to judge you. This is a business for the lenders. It's a risky business. They could have stuck their money on a horse. But the gamble they choose as their business model revolves around lending money at high rates of interest.

My advice would be to buy some time. If you're struggling then it's possibly inevitable that you're going to end up in a situation where your credit rating is screwed. That's possibly not a bad thing as, failing a lottery win, the situation can't go on forever.

What I did is stop paying back all my debts as soon as I had a inkling that I was going into an IVA. I told all the creditors. All of mine - 3 or 4 credit cards and the loan - put everything on hold. The continued to add interest but there were no more calls or letters from that point on.

Ask questions though. Use and abuse the IVA companies to get as much information as you can. Don't avoid questions on the basis that you're afraid of the answer. It doesn't matter who you choose because you may well end up getting shunted off to some shark a few months down the line. Sign up with the one that can actually deliver on the promises they make when you're just a prospect. And get EVERYTHING in writing. Don't believe them on the phone. I had one company telling me that they could get my payments down to less than £400 a month. Guaranteed! Well, until I asked for it in writing and then, of course, it depended on my I and E.

Find out what happens if your circumstances change for the better or the worse. Find out what will happen if you get a decent windfall. If you owe 50k then you can almost double that with fees, etc, if they decide to add statutory interest at some point.

Knowledge, knowledge, knowledge.

And make sure you have a complete list of every allowance you can get. The first one I filled in had lots missing. There are guidelines for each amount. Put the maximum down and let them negotiate. Don't try and play fair, play by the rules. If you spend more than the guidelines, put it down if you can justify it. My train ticket is £558 a month and the IVA company have agreed with that - the creditors might have a fit but the alternative is to get a job in the town that I live and drop a ton off my salary.

Did I mention knowledge? Do not go into this without it.

Just my 2p worth (+15% fees, disbursements and possible statutory interest).

Cheers
Andy



Great post Andy and very informative. Although I disagree with " It doesn't matter who you choose because you may well end up getting shunted off to some shark a few months down the line." ..... if you chose a shark in the first place and then don't get shunted to another, you are stuck with a shark anyway! Always choose the company you feel most comfortable with, who can deliver (read around the forum, a few come out heads above the others) and who, once they have answered the questions you ask, do things the way you would like them to be done, within the framework of an IVA. If you have a house and, therefore, equity to be considered .... how do they calculate this ? Definitely get that in writing! There is a good way ( 2010 Protocol Annex 7) and a bad way ! And, importantly in my opinion --- if the clag its the fan, can you speak to the IP direct ? Some firms feel the IP too important to speak to us mere mortals, which, to me, is a big red flag! Interestlingly, due, I suppose, to the culture / ethos of those firms where you can speak to the IP, you rarely actually get to the point where you need to!

That's my 2p worth ( I won't charge statutory interest :D )
marvinmoomin77
Posts: 11
by marvinmoomin77 » Tue Aug 01, 2017 8:20 am
Michael Peoples wrote:
Before you decide which firm to use it may be worth looking at independent reviews. Also have a look around this site and see what happens when you want to propose a variation, close the file down or speak with the IP.

https://uk.trustpilot.com/review/www.payplan.com

On their website the only reviews ever seem to be positive 5 star ones but Trustpilot tells a totally different story.

I see no reason to clear the Payday loans as this will only leave you short and make no difference to your IVA anyway. I can understand clearing the overdraft unless there are other debts to the same bank in which case you should open a new account altogether. It normally takes about four weeks for an IVA to be put in place and during this time you would normally not repay creditors. Any extra funds would help with urgent bills such as car repairs and utilities and any remaining funds would act as an emergency fund for when the IVA gets started.

It may be worth you taking a second opinion from an independent insolvency firm or the CAB before you commit to Payplan..


Thank you. I am looking at other firms as well. Do you think the fact the largest loan (TSB) is so new will affect the likelihood of a resolution. I am determined to pay as much as I can but my fear is the largest loan makes up a good 50% OF the total debt so if they reject it's game over before it starts.
The other issue is I had an IVA about 10 years ago which was cleared without issues but sadly I've got myself back into the mire.
Are you even allowed to apply for an IVA again? I don't know.
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Foggy
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by Foggy » Tue Aug 01, 2017 8:29 am
Good Morning Marvin ..... yes, you are allowed a second (or more) IVA, so no worries on that score.

Regarding paying back as much as you can, whilst laudable, do set the disposable income at a sensible level from the start. A hair shirt and daily flogging gets tiresome after the first year or so and too tight a budget makes failure more likely. I, in my innocence, set out with much the same view, but, to be honest, given that time again, I might have taken BR.
marvinmoomin77
Posts: 11
by marvinmoomin77 » Tue Aug 01, 2017 8:43 am
Foggy wrote:
Good Morning Marvin ..... yes, you are allowed a second (or more) IVA, so no worries on that score.

Regarding paying back as much as you can, whilst laudable, do set the disposable income at a sensible level from the start. A hair shirt and daily flogging gets tiresome after the first year or so and too tight a budget makes failure more likely. I, in my innocence, set out with much the same view, but, to be honest, given that time again, I might have taken BR.

BR is really not an option for me. I work in Public Sector and I also want a certain degree of confidentiality.
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Michael Peoples
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by Michael Peoples » Tue Aug 01, 2017 8:48 am
I agree. The second IVA is not a problem especially since it was so long ago and completed successfully. The TSB loan is not an issue as the people who make the decisions for TSB have seen this all before. Two years ago there was a poster on here who had borrowed £25,000 from Halifax and gambled it all away. He was a policeman and had not made one payment to the loan so was understandably worried. He stopped gambling and we sent out an IVA proposal which was accepted subject to us monitoring his bank statements for three months. He is now coming up to his second review and everything has gone smoothly.There was certainly no benefit to anyone in making him bankrupt and creditors rarely seek to punish.

An IVA is a way of returning money to creditors better than they would get in bankruptcy but while still having a standard of living. You are better paying back 30p in the £ at an affordable level rather than living on beans and toast for five years to return 50p.
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