New to IVA have a creditor meeting next week

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Lonely Place

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Post by Lonely Place » Mon Jun 21, 2021 11:25 am
Hi I've started an IVA with CF and have the meeting of creditors on the 29th June. Very nervous about the whole thing tbh and feel a little bit down about it all. I originally had the intention of going for a DRO but somehow managed to be steered on the IVA path by the company I decided to contact. I am in full time work and earn PM after tax £2005, my expenditure was £1934 and have agreed to £90 PM to CF. I rent and have no assets, no savings of the like. I was told I would not be able to go down the path of Bankruptcy and DRO due to not qualifying as I work? Feel a little bit like I've been sold down the IVA path as the company get a rather nice commission I guess?

I have in total £14500 of debt and the biggest one is DWP for £3500. The rest are credit cards, catalog companies, Bulb energy and PayPal.

Been reading this forum for quite a while now, and thought I'd check in and hopefully get back on the right track and be sent free.

kallis3

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Post by kallis3 » Mon Jun 21, 2021 12:02 pm
Hi,

That's rubbish that you cannot do a DRO or bankruptcy if you work! It does sound as though you were pressured into the IVA path and CF are known for charging high fees which the creditors don't always like.

If you are really worried it is not too late to stop the meeting and speak to another company, preferably a smaller one to see what they say.
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

Lonely Place

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Post by Lonely Place » Mon Jun 21, 2021 12:28 pm
Mon Jun 21, 2021 12:02 pmkallis3 wrote:
Hi,

That's rubbish that you cannot do a DRO or bankruptcy if you work! It does sound as though you were pressured into the IVA path and CF are known for charging high fees which the creditors don't always like.

If you are really worried it is not too late to stop the meeting and speak to another company, preferably a smaller one to see what they say.
Hi it was explained to me in regards to the DRO that I have more than £50 spare each month and a bankruptcy was not really an option as all my spare income would be looked over in depth and would prove to be very difficult to live with which probably would be worse than an IVA. The more I read and understand a bankruptcy order is probably the last resort. If my meeting fails or is rejected I will try to seek a DRO.

The DWP debt is my main focus and drive to seek help. They have just applied for a 15% DEA which is £300 off my income Evey month. This leaves me with nothing and will result in getting further in debt with added interest.

Hopefully it all goes well.

kallis3

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Post by kallis3 » Mon Jun 21, 2021 12:58 pm
With BR your income and expenditure is looked at in depth but you would have enough money to live on if you had an Income Payment Agreement which lasts for three years, plus all of your debts are written off straight away.
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

Foggy

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Post by Foggy » Mon Jun 21, 2021 1:29 pm
I would put the brakes on the IVA application with CF and speak to a DRO intermediary before making any decision. The disposable amount for a DRO is changing on the 29th of this month, to £75 - which might apply when your I&E is worked properly by a DRO intermediary.


I think that the advice being given by this firm is far from satisfactory. It could be that, on reflection, you might prefer the IVA route to the DRO ... but have that period of reflection first.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Lonely Place

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Post by Lonely Place » Mon Jun 21, 2021 4:26 pm
Thanks for the replies :)

It's a very long emotional rollercoaster been in debt for well over 9+ years. I think deep down an IVA probably is the best route to tackle my debt problems. Just something on the back of my mind is saying take the easy way out DRO or Bankruptcy, just feel a DRO would be impossible for me to get. Is step change still the best organisation to have a talk with?

Foggy

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Post by Foggy » Mon Jun 21, 2021 5:43 pm
I would speak to StepChange for advice on a DRO or a DMP ..... not for an IVA. For an IVA I would look to smaller firms who will treat you as an individual and not as a "cash-cow". As a point of interest CF are one of the most expensive firms, with respect to fees, and this has, more than once, resulted in an IVA being refused on these grounds !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Lonely Place

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Post by Lonely Place » Thu Jul 01, 2021 9:01 pm
Bit of an update after speaking with Step Change and a couple of other debt organisations Bankruptcy was always coming out on top. I have no assets, nothing of value and am not in any arrears with my rent, an IVA after spending a few days doing research what seem all day was not going to work. So may have failed, I think it's 3 in 7? You have annual reviews and all it takes is 4 years down the line a little slip up and your back to square one. I was 100% sold over the phone to go for an IVA .

In the end I paid the £680 and was officially declared bankrupt this morning. The forms took a couple of days to fill out and make sure it was %100 accurate, it took less than 32 hours for it to be approved. Finally on the road to recovery :)

kallis3

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Post by kallis3 » Thu Jul 01, 2021 9:31 pm
I'm so glad you have been sorted and are happy with the outcome.

A weight will have been lifted off your shoulders and you can look forward to a debt free future. Enjoy your weekend now - even if the weather is supposed to be awful! :D
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

Lonely Place

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Post by Lonely Place » Thu Jul 01, 2021 9:56 pm
Thank you. Today has felt amazing, its a strange feeling to celebrate going bankrupt it's kind of feels wrong if that makes sense? But 9+ years of dealing with debt letters, companies threating to knock on the door to take items away. All that is gone, this forum and others alike provide so much valuable information and help other like me :D

kallis3

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Post by kallis3 » Fri Jul 02, 2021 7:24 am
I do know what you mean - you wanted to pay back your debts but despite your best efforts it was not possible. Glad it all came good in the end and hopefully, others will see your posts and realise there is light at the end of the tunnel.
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

luluj

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Post by luluj » Sun Jul 04, 2021 5:55 am
Good to hear things have worked out for you and you are now on a clear path to your future.
Sharing from experiences of dealing with debt

There is a solution for everyone .... Just need to stay positive !

Look at my blog "All I wanted was a baby"

Lonely Place

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Post by Lonely Place » Thu Jul 08, 2021 3:58 pm
Thank you for the kind words.

My word Bankruptcy and the official receivers office don't mess about. My banks have been informed, Monzo & Starling, I can keep these as there is no overdraft so happy there, and most of my creditors have stopped harassing me, a simple email back with my bankruptcy order has quickly delt with most matters.

Have a telephone call tomorrow at 9 to go over my bankruptcy and financial situation so I am going go be 100% honest and truthful. So far it's positive experience!

Foggy

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Post by Foggy » Thu Jul 08, 2021 4:03 pm
Great to hear it is going well so far. BR is far more straightforward and rigid than an IVA, but that is sometimes a good thing -- no doubts and surprises. It is not the ogre we always, instinctively, assume it to be.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

luluj

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Post by luluj » Thu Jul 08, 2021 8:10 pm
Hope tomorrow's call goes OK- let us know x
Sharing from experiences of dealing with debt

There is a solution for everyone .... Just need to stay positive !

Look at my blog "All I wanted was a baby"
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