Newbee...help & advise please

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sandalwood

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Post by sandalwood » Mon Jun 28, 2010 2:25 pm
Hello to all,
I would like some help and advice on the below please if I may:

Me and my partner have been on a DMP with payplan since June last year,sort of going ok ish,we are around £43k in debt and started paying £550 month,then my income dropped due to a pay cut,and my partner went on maternity leave so we dropped the payments to £173 a month-at this rate our DFD will be 2030!!?! which isnt good!

My partner is due back to work in a few weeks,and we have just found out she is pregnant again! We own a 1 bed flat,which isnt ideal even with one baby,we were going to move next year anyway,but now we need to move ASAP for when the new baby is due in Jan/Feb
My partner will be earning part time money now as she needs to look after our first child-we have also arranged a nursery for her when we are both at work-but this will have to stop once the new baby arrives as she will be only on maternity pay again,and too be fair,with 2 babys to look after and costs of care,we reckon it might be cheaper for her to give up work all together,just hand notice in when her maternity pay stops the second time around
Without any debts to pay I reckon we could manage (just) on my wage

I reckon there is around £20k equity in the flat,we have been speaking to Payplan and they reckon a full and final IVA may be a good option for us.We have a chat booked with them in a few weeks
We could sell the flat,maybe take £5k out of the profit for fees and then offer £15k on a full and final IVA to the creditors and then rent somewhere for a few years until we are able to get a another mortgage again.I know that normal IVA's are over 5/6 years and you cant get credit over that period,i.e mortgage,but how long do we have to wait if we do a full and final IVA?

Also,when the process of the IVA starts,I know they need P60's,mortgage statements,etc,etc,how how far back do they need to see the bank statements? 3 months,6 months,1 year?
I had a bonus at end of last year,was going to settle debts,but had a massive,massive family emergency and had to dip into it all to stay away for a month while my brother was in intensive care and look after other members of my family as they were to in hospital.

I would just like any advice on the above please,bit confused with what to do for the best,I just dont want the threat of a knock on the door over how many years we are on the DMP,I would rather just try and clear the debts with what I can get from selling the flat,and start again,getting other credit dosent bother us as we have done a year on a budget so I reckon we can carry on like this
As I said,our situation is ok now (ish) but it going to get worse so I would like to pre-empt it and do something about it now as apposed to all coming in top at the end of the year

Thanking you all in advance,really appreciate it
hope to get some info soon from you guys

also,forgot to add,if we do a FF IVA and a few months after I get a bonus or another bit of cash from a windfull,do I need to let them know ? and could they take that aswell? or as it was done and dusted before hand they cant touch it?
 
 

Shining

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Post by Shining » Mon Jun 28, 2010 2:39 pm
Hi there and welcome to the forum.

I would definitely speak with 2 or 3 potential IP's about your situation as all debt solutions can be discussed that will be specific to you. A F&F could be an option and if accepted as far as I know would be the end of your debts.

Why not take a look at www.iva.com for a list of companies and some reviews. Our professional posters also come highly recommended and can be found via the experts link. All the best. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

Michael Peoples

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Post by Michael Peoples » Mon Jun 28, 2010 2:54 pm
Hi Sandalwood and welcome from me too.
What you are suggesting seems perfectly reasonable and these type of one off IVAs are quite common. Your IP will want to see bank statements and details of your creditors but will not dissect the transactions that happened some time ago.

Should your proposal be accepted you would be bound by the terms until you receive your completion certificate. This would mean bonuses and windfalls could become payable if your IP was slow in closing your case down. Make sure your IP works quickly and releases you from the IVA as it should only take a few weeks after they receive the funds. Unfortunately some clients on this site have been left hanging for long periods waiting for confirmation of their discharge.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

sandalwood

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Post by sandalwood » Mon Jun 28, 2010 3:49 pm
Thank you both for the replys,as said I have a chat booked with payplan in the next couple of weeks and then I will see what I need to do,then get it touch with a couple of other IP's and compare
I am sure I will have loads more questions before then so will post them when I have them
thank you
 
 

Shining

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Post by Shining » Mon Jun 28, 2010 3:50 pm
Please do post any queries, there is always someone about to offer help/advice as necessary. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

sandalwood

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Post by sandalwood » Mon Jun 28, 2010 4:15 pm
Just thought of one already....

If,for example,a few of my creditors,default me,and then I do a FF IVA,will the default still show on my credit rating for 6 years or does the IVA "cancel out" the default? and the IVA stays on credit for 12 months(ish)
 
 

Michael Peoples

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Post by Michael Peoples » Mon Jun 28, 2010 4:19 pm
The default will stay for 6 years regardless of the length of the IVA. However, many creditors ignore defaults after a couple of years so your credit file should start to rebuild itself.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

sandalwood

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Post by sandalwood » Mon Jun 28, 2010 4:23 pm
thank you
 
 

MelanieGiles

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Post by MelanieGiles » Mon Jun 28, 2010 9:25 pm
Do be careful about giving up your home when there may be other options. On paper a property with around £20k equity may appear a sensible options for a full and final settlement, however you need to take agents costs, solicitors fees, HIPs, removal costs - and potentially a drop in the asking price into account.
Regards, Melanie Giles, Insolvency Practitioner
 
 

sandalwood

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Post by sandalwood » Tue Jun 29, 2010 8:02 am
Hi Melanie
I will look at other options,but personaly I think this may be the best for us,I am sure the IP will let me know other options
I am certain I can get at least £20k out of the place,I am working on minumums,as far as I know HIPS are not in place anymore-is that correct? and besides,it is a lease hold so I dont think I would be responsible for that at my place anyway.There will be no removal fees as I have access to a van and I get a discount on solicitors fees as a family member works for one.
As said previously,I will wait to have to a chat with payplan,then be in touch with other IP's to compare
thank you for your help
 
 

rayb

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Post by rayb » Tue Jun 29, 2010 8:29 am
Hi,

You are correct - HIPS have been disolved
 
 

Michael Peoples

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Post by Michael Peoples » Tue Jun 29, 2010 9:55 am
HIPs have been suspended which is a good thing as they certainly contributed to the housing market decline. However, you still have to get an energy performance certificate which costs about £45 and is again in my opinion a total waste of money. Scrap these too.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

MelanieGiles

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Post by MelanieGiles » Wed Jun 30, 2010 12:51 am
I genuinely didn't know that - so thanks guys for correcting me.
Regards, Melanie Giles, Insolvency Practitioner
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