Terrified Newbie with lots of (stupid) questions

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Imhotep

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Post by Imhotep » Mon Aug 02, 2010 9:44 am
Hi.

I've been lurking for a while and thought I'd post with a couple of questions.

We have around 42k in unsecured debt. We live in a house valued at approximately 166k with a mortgage of 106k and a secured loan of 42k.

It looks as though we are going the IVA route with CCCSVA, we have our second telephone meeting with them this week.

At the moment we are in an odd kind of limbo. We are in the process of making token payments to our creditors (terrifying because we have been trying to make at least the minimum payments for years) but one is a personal loan with my old bank (Co-Op). I'm worried in case they force me into an unauthorised overdraft as I cannot cancel the standing order. I'm about to send in a Postal Order for a token payment but still expect them to take the full monthly amount. Which would mean they are being treated differently to the other creditors. I have no idea what to do. Any suggestions?

One other thing, and this could well be the stupidest question anyone has ever asked here, but in the fifth year if we were to free up any equity would it be all equity (or up 85 percent I think I've read) or just enough for F&F payments? Also, would the F&F payment be the initial amounts owed or would these have been renegotiated since?

I could go on... lots! But I'd better leave it at that for now.

Thanks for reading.
Last edited by Imhotep on Mon Aug 02, 2010 9:47 am, edited 1 time in total.
 
 

Shining

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Post by Shining » Mon Aug 02, 2010 9:55 am
Hi there and a very warm welcome to the forum. You ask as many questions as you want as that's what the forum is here for, support and guidance for all.

You're addressing your debts and you've made the first step of posting so you're moving in the right direction. Have you taken any advice from other companies apart from the one you're having the 2nd telephone interview with this week? It's always advisable to contact at least 2 if not 3 companies to ensure you're getting impartial, case specific advice.

www.iva.com lists some companies and some reviews of these, all our professionals come highly recommended too and can be found via the experts link.

Prior to acceptance of my IVA I made no token payments however, the HSBC did still keep paying themselves from my overdraft which probably doubled over its limit by the time the IVA was up and running. All the unauthorised overdraft will go into the IVA so don't worry.

5th year equity is usually up to 85%, climate wise at the minute it's not easy to remortgage and some IVA's are continuing for another 12 months in lieu of the equity. All will be explained to you in detail by a good IP.

You keep asking any questions and we'll try to help.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

Imhotep

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Post by Imhotep » Mon Aug 02, 2010 10:05 am
Hi Lesley.

Thanks for the reply.

We went to the CAB who told us that an IVA would not be suitable as it would cost approximately 550.00 a month and based on our SoA we didn't have enough 'spare' to cover that. They suggested a DMP which would take 22 years to pay off.

I then went to CCCS and they straight away said that a DMP would not be suitable at all.

I've read up on CCCSVA and they seem to be pretty good... I am aware that they are a charity funded by the banking system. I'm not sure if that makes any difference.

So the equity thing, if we had debts of 40k and equity of 100k would we have to release 85k or 40k?
You may be able to tell by this question just how much of what I'm reading is going over my head :)
 
 

Shining

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Post by Shining » Mon Aug 02, 2010 10:13 am
We'll keep this bumped up for you so that a professional can advise you about the equity etc., to ensure you get the correct advice. Me, I'm just someone in an IVA bless me, but believe me it's the best thing I did and no regrets here. The security it offers is amazing x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

kallis3

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Post by kallis3 » Mon Aug 02, 2010 10:18 am
Hi and welcome from me as well. Love the name, someone is obviously a fan of 'The Mummy'!

I agree with Lesley that you should speak to a couple more companies. The experts who post on here come highly recommended and you can find their details under the experts link on the left hand side of the page.

The amount of equity to be released is normally decided at the creditors meeting. It is unlikely though that you will be able to remortgage and what usually happens is that you will make an extra 12 months payments.
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
 
 

Imhotep

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Post by Imhotep » Mon Aug 02, 2010 10:38 am
Hi Lesley.

It is the security of the IVA which is the main lure for us. We both work full time, we have two young children (8 and 6), my wife has been on anti-depressants for years and I have leukaemia. We could do with a bit of security.
Last edited by Imhotep on Mon Aug 02, 2010 10:40 am, edited 1 time in total.
 
 

Imhotep

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Post by Imhotep » Mon Aug 02, 2010 10:47 am
Hi Kallis3.

I'm a big fan of The Mummy... and The Wizard of Oz [:)]

So we may not be able to remortgage at the five year point? Would this be because of the IVA / credit rating?

If this was the case and we did not have the option to pay an additional 12 months what happens then? Could we loose our home?

Obviously, a lot is up in the air here. We haven't even had our proposal yet so I have no idea what will be on there. I was just reading of someone else's situation where the additional 12 months of payments were not on the proposal and now they are worried about losing their family home.

One last thing (for now). If we do go into an additional 12 months of payments will we be on the register for an additional 12 months after that?
Last edited by Imhotep on Mon Aug 02, 2010 10:50 am, edited 1 time in total.
 
 

kallis3

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Post by kallis3 » Mon Aug 02, 2010 11:04 am
I love the Mummy films as well (apart from the third one which I thought was dire).

It will be a combination of the two, I don't know of anyone who has managed to remortgage recently and all have had to do an extra 12 months. Mine is written into my report so I know I will have to carry on. I imagine there will be no problem.

You will be on the Insolvency Register for the duration of the IVA and it will be on your credit record for six years.
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
 
 

Shining

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Post by Shining » Mon Aug 02, 2010 11:36 am
I sincerely hope that the security an IVA brings also brings you good health too. Remember this forum is always here and there is nearly always someone about to offer support/advice when needed. Keep in touch and do let us know how it goes won't you? x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
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