Hi,between my wife and I we have 61k of debt

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john.fs
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by john.fs » Thu Jan 28, 2010 5:05 pm
Hi,between my wife and I we have 61k of unsecuerd debt being c/cards, loans etc which is split wife 30k me 27k and joint bank overdraft of 4k. We are currently on a DMP with CCCS however creditors are still charging,in varying degrees, interest. The balance will take about 14-15 years to pay off at this rate.
We have our own home valued at about £210k and have outstanding mortgage of £178k. Our monthly expenditure is £3055 (Not including unsecured debt payments)
.My take home pay is £1900 this includes my cycle scheme loan which is deducted at source, my wifes £1400 which includes her cycle scheme loan plus an essential car users loan for her car as she works for local goverment. I am hoping for a few answers initially.
What are our chances of being accepted on to an IVA ?
Can we have a joint IVA ?
Do we have to get rid of the car and bikes ?
Just how much equity will we have to give away from our home at the end ?
We have two prmimary school aged children, is the IVA so tight as not to allow us to go on a hoiday once a year ?
It may also be worth noting that I have a CCJ pending.
Thanks.

 

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Lisa2009
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by Lisa2009 » Thu Jan 28, 2010 5:12 pm
Hi and welcome to the forum. An IVA could well be an option to consider so its deffinitely worth speaking to 2 or 3 companies for some free advice.

A lot of the posters on the forum take advantage of the cheap sun holidays. If you can save on your allowances then there is no reason you shouldnt have a holiday. It doesnt have to be extravagant.

Take a look at www.iva.com for a list of IVA providers and reviews on each.

Good luck
Last edited by Lisa2009 on Thu Jan 28, 2010 5:12 pm, edited 1 time in total.

 

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Diddy
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by Diddy » Thu Jan 28, 2010 5:20 pm
Just because your in an IVA doesnt meen you cant have a life, it just has to be budgeted for properly and within reasnoable guidlines, so if you can afford to have a break on your allowances then you should and i dont think there will be anyone saying you shouldnt.

Were planning our first family holiday for 3 years, nothing fancy, just a weeks camping with the kids, but we are already really looking forward to it, just have to hope that the proposal gets accepted or plans may have to change again.

 

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Tina Shortland
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by Tina Shortland » Thu Jan 28, 2010 6:22 pm
Hi john.fs and welcome to the forum. As the others have said with careful budgeting you should still be able to get away with the kids for a break but it may not be the kind of break you are used to...at least you'll know you have paid for it with cash and won't owe anything on it though!

As an IVA is based on the disposable income you have it is important that your expenditure is calculated properly so you know what you can definitely offer the creditors but with the figures you have mentioned, together with the child benefit you are receiving should generate enough of a monthly payment for an IVA.

You would not be expected to get rid of the cycles and car as you need transport to get to/from work and have a life with the kids.

It is important you get advice about all options available to you so that you understand the implications of each can both can work out the best way forward.

To answer your question about equity you would not be expected to release 100%. Usually it is the difference between your mortgage/secured debt balance and 85% of the value of your property at that time. If equity cannot be released creditors may look to extend the term of the IVA but all this will be explained to you once you seek further advice.

Regards,

 

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Adam Davies
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by Adam Davies » Thu Jan 28, 2010 6:30 pm
Hi and welcome
You sound as if you have the basis of an IVA and yes you will both need an IVA but they will be interlocking and to all intent and purposes joint. Your car and bikes should be fine and you will be asked to try and remortgage your property in the final year, the max that you will probably be able to borrow will be 80% ltv and this less your outstanding mortgage will be the most that you will be required to release. If you are unable to remortgage then usually your IVA will be extended by one year. You will not be given a budget for an annual holiday i'm afraid but may be able to save money from your allowances or overtime/bonus share to fund this.
An IVA will overide any CCJ
Regards

 

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MelanieGiles
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by MelanieGiles » Thu Jan 28, 2010 11:02 pm
I am interested to learn why CCCS have not suggested an IVA to you in the first place - given that they have their own commercial IVA team in place. How much are you currently paying into your DMP, and was this the only option discussed with you at the time you sought advice?

 

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Shining
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by Shining » Fri Jan 29, 2010 6:19 am
Hi and a very warm welcome from me too.

It is all about budgetting and then your lifestyle although more frugal is enjoyable, I'm entering my third year now and to be fair in a strange way I enjoy the security the IVA gives me.

I do budget and I do try and save a penny here or there, not managed a holiday away yet but do have weekends with my family up north using the £9 a night Travelodge rooms and their hospitality.

I would certainly talk to 2 or 3 providors in respect of your situation.

 

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Michael Peoples
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by Michael Peoples » Fri Jan 29, 2010 10:21 am
It does appear that IVAs may well be suitable options and like Melanie I am surprised that the CCCS did not recommend you speak to an IP before putting you into a life sentence of a DMP.

 

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CCCS Counsellor
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by CCCS Counsellor » Fri Jan 29, 2010 10:35 am
Hi John,

Hope your well?

If you are have been thinking about applying for an IVA, you would be able to call our client support department for a review and get them to look into your options. Their phone number should be on the back of one of your statements.

If an IVA is an option, then we could refer you to CCCSVA to discuss this in more detail or you could look at one of the other firms.

As I don’t have access to your account I unfortunately would not be able to go into details about what was discussed on your initial appointment.

Sarah

 

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size5
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by size5 » Fri Jan 29, 2010 12:04 pm
It is interesting that you suggest you have a CCJ pending, despite having approached a creditor favoured organisation for help. Some creditors do seem to want to have their cake and eat it as well. Do you know if it is a CCJ or is it a possible charging order?

Regards.

 

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CCCS Counsellor
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by CCCS Counsellor » Fri Jan 29, 2010 12:46 pm
Hi Size5,

As a debt management plan is an informal arrangement between the client and the creditor, so there is never any guarantee that the creditor will stop further action. This is the same for any dmp organisation.

Even if the creditor did apply for a CCJ then as long as a fair amount is offered then there is a good chance that this offer would be accepted and it could still be paid via the dmp. So for the client this means that their budget is still affordable.

 

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size5
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by size5 » Fri Jan 29, 2010 1:10 pm
I am aware of that of course, and I am also aware that an N245 can be used if need be to vary any court judgement to fit within a pro rata payment for the benefit of all creditors. The point I was trying to make was more aimed at the sheer futility of making sensible arrangements to pay the debt back, through a non fee payer, and then a creditor instigating a ccj, with more cost to the client, when it would seem to be a wholly unnecessary step.

Let us hope that an IVA is viable for john.fs to put an end to it all, as he still seems to be paying interest on his debts as well.

Regards.

 

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CCCS Counsellor
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by CCCS Counsellor » Fri Jan 29, 2010 1:26 pm
size5 wrote:


I am aware of that of course, and I am also aware that an N245 can be used if need be to vary any court judgement to fit within a pro rata payment for the benefit of all creditors. The point I was trying to make was more aimed at the sheer futility of making sensible arrangements to pay the debt back, through a non fee payer, and then a creditor instigating a ccj, with more cost to the client, when it would seem to be a wholly unnecessary step.

Let us hope that an IVA is viable for john.fs to put an end to it all, as he still seems to be paying interest on his debts as well.

Regards.


Definitely, would be fantastic to have a guaranteed end date! I think that these issues are something that they are hoping to resolve with the statuary DMPs.

 

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MelanieGiles
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by MelanieGiles » Fri Jan 29, 2010 7:35 pm
We already have a statutory regulated DMP with a guaranteed end date. It is called an IVA.

 

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john.fs
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by john.fs » Sat Jan 30, 2010 7:33 pm
Hi guys and thank you so much for your replies.
Yes, origionally the cccs did recommend an IVA but with us being naive and believing that the creditors would stop interest we thought we would give the DMP a go, buckle down and pay it off in 9 years without risking losing the house. It has soon become obvious that its not possible, with constant battles and sky high phone costs to creditors and cccs alike on blasted 0845 numbers its like banging your head against a brick wall !
CCCS will not entertain an IVA until the CCJ is finalised which I'm finding very frustrating.
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