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Colin351973

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Post by Colin351973 » Thu Jan 30, 2020 5:34 pm
Hi every one im new to all this iva stuff .I'm currentley in the process of applying for an iva after years of struggling in debt my total debt is around £43000 I have gone through a company called faith financial who will be referring me to an ip in the next few weeks .I don't have any assets apart from my car worth 1500 .The question I have is that I only rent my home with no assets .If you don't own your own home and only rent do you have to do the additional year taking it to 6 years or if you have no equity does it just run for the 5 year period I'm very anxious at this time and hopefully during the next 6 weeks I'l be in a better position I'm being referred to my ip soon I'm very anxious about this I am told my payments will be around the 350.00 marker but this is a lot less than the 1000 a month I'm currently paying .I'm so lost with it all and any advice would greatly be appreciated thanks .There is not much information of entering an iva whilst renting a home I will have no equity to release at all.im already on the breadline so to speak.and I'm.so worried about this decision I'm taking to try and get my debts under control paying the minimum on my credit cards etc is going to take over 12 years so if I can get accepted hopefully this iva would be a good thing for me I am in a full time job regular income etc my take home pay is 1850 a month an iva would less than halve what I'm.struggling to pay any advice anyone please help me !

Foggy

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Post by Foggy » Thu Jan 30, 2020 5:41 pm
It is a pity that you are already in the process and do not know (and are unable to choose) who your IP provider is going to be. Has Faith told you who they normally refer to ?

Anyway --- as you are not a property owner there will be no equity clause in the agreement, so no extension for that purpose. Sometimes, however, creditors seek to extend anyway, if the repayments they are expecting are on the low side, but your projected £350 on that level of debt is a good return ( in IVA terms), so they probably won't even think about that.
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

Colin351973

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Post by Colin351973 » Thu Jan 30, 2020 5:47 pm
I have considered taking my own life over these worries but I know there is a way out of this if it can be approved for me im in a real mess and I really don't know where to turn to hopefully things can be resolved I'm so embarrassed of my situation good job etc but iv nothing left after my debt repayments it's all getting too much for me Im.feeling lost and hopeless is this iva the right thing I'm.just about keeping my priority bills afloat I'm feeling so lost

Foggy

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Post by Foggy » Thu Jan 30, 2020 5:51 pm
Most of us who have entered an IVA feel it was / is a good move. I relieves SO much pressure you won't believe ! You won't have any money to spare while you are in an IVA, but everything you need will be budgetted and paid for. You will learn budgetting and get a new respect for money. It is not easy -- but it is easier that juggling whilst also trying to keep your head above the water!
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

Colin351973

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Post by Colin351973 » Thu Jan 30, 2020 5:51 pm
I have also gambled the rest of my money hoping for a big win but I know this is stupid iv tried to gamble my way out of debt it's stupid I know I'm really considering taking my life over this issue I'm.in such a mess can anyone help me

Foggy

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Post by Foggy » Thu Jan 30, 2020 5:54 pm
Colin -- please post after thoughts as a reply to your main thread. Don't keep opening new threads or answers will get confused. I have merged them into one thread.
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

kallis3

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Post by kallis3 » Thu Jan 30, 2020 5:59 pm
Please don't do anything stupid - we are here to help and also you need to speak to someone for professional advice. Have you thought about bnkruptcy as a possible solution?
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

abbiesmum2003

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Post by abbiesmum2003 » Thu Jan 30, 2020 7:06 pm
Hi Colin
Glad you have found the forum.
It is a life saver.....literally.
Me and my husband bit the bullet about 7 years ago when we were no longer able to cope moving money about to pay even the minimum payments and realised we had to take action.
Entering the IVA was best thing we could have done.
With the right set up and budget from the start it is manageable but you have to get it right FROM THE START.
Dont agree to a budget plan (sometimes referred to as I&E -income and expenditure) until you are certain it is true and realistic.
make sure everything possible is included-haircuts, prescriptions, dental, opticians, utilities, Rent, parking etc etc!!!
When renting you should inly do the 5 year plan and no extra for equity but like Foggy said sometimes they extend if return is low and if somwthinf major happens during the iva and you need to request a payment break-this will be added on at the end.
Main thing read the terms then read them again amd again!!!
Read posts on this forum
about issues that arise and how they can be resolved.
Be aware of your responsibilities and theirs.
A full understanding is important.
But it is possible and a huge weight off shoulders to regain financial control.
We are out the other side now.
Not debt free but only becUse we have taken out new credit cards to improve credit history/score and regain responsible borrowing.
Quit/close your gambling accounts.
You will need to open a new current account with a new bank you have no debts with once IVA process has started. This is very important. Only transfer the direct debits for your bills/salary-not the debts. Somw people carry on paying token payments-others stop paying altogther and save the money towards a bit of cushion when iva starts.
Be sure iva is the best route for you. Chat to a few companys before signjng as will be commited to a company for 5 years-you cant change.
keep posting here for help/advice. the guys here are the best.

kallis3

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Post by kallis3 » Thu Jan 30, 2020 7:37 pm
Please close down any online gambling accounts you have as it will help you in the long run.
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

Lisa Thomas

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Post by Lisa Thomas » Fri Jan 31, 2020 9:03 am
Based on the information you have posted Bankruptcy may well be a better option for you than an IVA.

Did Faith Financial run through Bankruptcy with you as an alternative option?
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk

Colin351973

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Joined: Thu Jan 30, 2020 5:18 pm

Post by Colin351973 » Fri Jan 31, 2020 9:58 am
Hi everyone thankyou for your help .It will be a relief to get things up and sorted .I have already signed up with gamstop as a condition of starting the iva process iv had to provide 4 weeks clean bank statements. I have already set up a new bank account tsb as my old bank was first direct and I owe them money and have heard about the problems they can cause lol.My paperwork is being handed over to an ip not sure who the firm is I will keep you posted they are forwarding my case as we speak .I did mention bankruptcy to them but the only problem for that is that my elderly mum has given me power of attourney for her bank account so I was thinking if I can get the payments low enough on an iva I will be able to manage them you are not allowed power of attourney in bankruptcy. :roll: :roll:

Colin351973

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Joined: Thu Jan 30, 2020 5:18 pm

Post by Colin351973 » Fri Jan 31, 2020 10:02 am
I have kept up with most payments so far with my creditors but just starting to fall slightly behind with payments so I have a little time before the nasty threats start lol .My wages are now paid into my new bank account I just set up this month .So just had my essential bills transferred to this new account . :shock:

Lisa Thomas

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Post by Lisa Thomas » Mon Feb 03, 2020 9:40 am
Hi Colin

I'm not sure what you are saying about Power of Attorney is correct.

Please take advise as I believe Bankruptcy may well be better for you than an IVA.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk

kallis3

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Post by kallis3 » Mon Feb 03, 2020 9:52 am
Copied from Citizens Advice

With bankruptcy, you would not be able to continue to have lasting power of attorney as you would be considered unfit to have such a role, based on your own financial situation. However, with an IVA, your role as lasting power of attorney is not affected.
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

Lisa Thomas

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Post by Lisa Thomas » Mon Feb 03, 2020 11:15 am
Thank you Kallis, you are right.

OP I apologise for any confusion.

I have done some research to see what law this derived from and for ease of future reference it derived from the Mental Capacity Act 2005, Chapter 9 here:

http://www.legislation.gov.uk/ukpga/200 ... 009_en.pdf

The act appears to have been replaced in 2019 but I haven't found the equivalent section yet.

OP Is there anyone else who could replace you with the POA?
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
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