Originally told that we are not suited to an IVA

[lou lou]

Please can someone give me some advice?
My husband and i have been on a DMP for the last 3 years debt commencing debt approx 62K now about 52K. We have 2 young children I work part time and my husband full time.

I am increasingly anxious about our situation and can not see light at the end of the tunnel.Originally we were told that we are not suited to an IVA, we pay £380 pm at the moment.Is this true? We may be able to secure finance from family if we could do a full and final IVA, not sure we qualify, we have a mortgage and there is a charge on the house but there is little if any equity in the house to speak of! Thanks

[Michael Peoples]

Hi Lou Lou and welcome to the Forum.
Your case sounds like an IVA is very suitable and I am confused as to why someone would tell you otherwise. You could do a one off or a five year depending on which would be best for creditors and you should certainly take another opinion.

Who told you that an IVA was unsuitable and what was the reason?

[Shining]

hi lou lou and welcome to the forum.

Do you know why it was suggested you weren't suited to an IVA?

It might be worth taking a look at www.iva.com for a list of companies and some reviews of these, talking to 2 or 3 to gain some case specific advice in respect of alternative debt solutions.

Let us know how you get on won't you? x

[tobeornot]

be careful before entering any agreement, it sounds as if bankruptcy could be a better alternative for you, if you have no equity in your home, as with a iVA in final year if you then have equity you will have to give this to them, remember to get all the facts before signing anything, as there are lots of fees involved

[size5]

Bankruptcy could indeed be an option here, but without possession of the full facts that would be a very dangerous assumption to make.

There are lots of instances where a DMP was the right thing to do at any one given point in time, but things change, circumstances change, eligibility criteria evolves etc, so taking some no nonsense professional advice at this point can do you no harm at all. Vist the link that Lesley has posted and go from there.

Regards.

[The Major]

Hi Lou Lou

I wonder if it was the debt management company who told you that you were not suitable for the IVA, from what you have written it seems a much better option than debt management, £62000 for debt management is far too high but a nice little earner for the DM company, I would explore the IVA/ Bankruptcy route otherwise you will never have a life outside of being riddled with debt.

[Tina Shortland]

Hi Lou Lou,

As the others have suggested, the best thing you can do is to explore all the options properly with a couple of the Insolvency Firms on here so that all options can be discussed in full. Lesley has provided a good link to look at some reviews as well.

As size5 says it is dangerous to be lead to a particular option without knowledge of the full facts and to clarify on the equity point, there are limits to any equity you would have to give to creditors in the final year. This will be discussed with you by one of the experts when you have a chat with them.

Regards,

[tobeornot]

Size 5, please note that assumptions were not made, it states bankruptcy "COULD" be a option and clearly states to look into every option


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[Skippy]

Tobeornot, you seem to have a problem with the professional posters on the forum and I don't understand why.

Yesterday you criticised one expert for supposedly making assumptions, and today you have a problem with an expert saying that assumptions shouldn't be made.

[lou lou]

We are with cccs,apparantley we don't contribute a high enough monthly payment to do an IVA.Bankruptcy is not an option for us due to my husbands job. We maybe have between 8-20k equity in the house if you believe current market prices!But we have a charge on the house for approx 19k on it.

I am not sure how I feel about an IVA morally,I worry about my children growing up with this and the long term effects on our family. Thinking we will end up selling the house anyway, I am struggling to cope with this hanging over my head!Just need to see the end will be insight in my lifetime!

[Shining]

I think £380 is a fair payment into an IVA, it might be worth talking to a couple of companies to see what the professionals think. It doesn't have to be the company who is managing your DMP who proposes your IVA.

Have a chat with them at least and hopefully things can get resolved soon. x

[MelanieGiles]

Ask for the IP at CCCS to check out your case and enquire as to why an IVA was not recommended as an option to you. From the facts that you have quoted, it would appear to be perfect for an IVA.

I'd be curious to know the response you get - and of course if you are not happy with the DMP there is no harm in you taking advice from other insolvency practitioners at the same time.

[size5]

I am also surprised that CCCS seemingly consider £380 per month on a debt of £62k, now £52k, to be too low a contribution. IVA's are based upon affordability and if that is a true reflection of what you can afford then it seems perfectly reasonable to me. Don't forget that an IVA is designed to protect your assets, and also give you an end to it all. Even if every creditor that you owe money to never puts on another penny in interest, a moot point with DMP's of course, then you face another 137 months of payments, or 11.4 years approximately. I do understand your point of view re the house and the effects on the children, but a legally binding solution whereby you can keep the house and lessen the long term effects on the family has to be worth a look into, at the very least.

Visit www.iva.com and speak to 2 or 3 people, my gut instinct is that you will be glad you did.

Regards.

[lou lou]

Thanks for all your replies. I will certainly look into it further!

[Shining]

Let us know how you get on won't you? x