I am very new to this but have read a few of the forum subjects. Here is my brief situation.
Own a house (mortgaged interest only with no equity)
Husband employed, me self employed
2 children under 5
£64k in debt and drowning
We have approached the CAB who put us in touch with Payplan - an IVA has been decided is the best route (a DMP would take 26+ years)
We are so new to this we havent even had the authority letter to send.
This will be the first month of missing any payments to our creditors - we have spent almost a year using our credit card to live off after using our salary to pay our debts and have therefore spiralled out of control - i am sooo scared i am not sleeping and my husband thinks this is just the tip of the iceberg (as in it will get a lot worse!)
I have, as discussed with PP, just cancelled all our direct debits to the creditors and will send them token payments.
My biggest fear is what if the IVA gets rejected - and the 8 weeks it takes to get it agreed (or not) will i not be sleeping all that time or can it be done quicker??
out of the £64k approx £48 of it is with one creditor (albeit split over 4 accounts)if they say no, job done!!
OMG OMG how did we let this happen!!! I know we are not alone but cannot talk to family and friends - only between me and hubby and even that can be hard as we never argue but have been quite tetchy with each other.
Sorry - this was meant to be the short version I will stop now
Any help and advise will be greatly sought after - thank you xx
The timescale can be shortened considerably by yourself. Eight weeks is a typical figure, but if you get the documents returned quickly and with nothing missing, then the validation and drafting stages can be done very quickly, thus shortening the timescale down from that typical figure.
It is natural that you worry, but you can do no more than you have done by asking for help in the first place, and you should not beat yourself up about trying to reach a fair and reasonable deal with your creditors. The alternatives, more borrowing or no payments at all, would surely be far more worrying for you.
Good luck and regards.
Size5 - what sort of information/documents might i need to get together - i have asked the inital person at PP but he said they will send it all out in the post - unfortunately I am not patient enough and feel if i am doing something it might help.
I am so glad i found somewhere to talk because as much as i love my hubby and we are both in this together - outside advice is brilliant
There are other bits, but that should be enough for you to be getting on with over the weekend.
Hope this helps.
As an IVA is a legally binding arrangement it is especially crucial that everything is done properly and all detail is fully assessed which is why it can seem like ages. Hopefully you are being fully informed and advised along the way so as to put your mind at ease, even at this early stage. It is important you can always pick up the phone to whoever is looking after you so you can ask what questions you need, check progress and sometimes just to keep in touch if you want to.
It is worth speaking to a few companies so you can make sure you are making the right decision and are comfortable with who is representing you. Hope you get a better night's sleep tonight.
Adding to what the others have said it is also important to have any outstanding tax returns submitted even though you will not be paying any monies due. If you have not submitted 08/09 try and get it in as quickly as possible and the same applies to any VAT or PAYE returns.
You will also need to supply a background story explaining the causes of your financial problems so it would be worth listing a few bullet points detailing the relevant points. Good luck with your proposal.
Best of luck clairbare
I went through this same process at exactly this time of year a year ago, and it is very new and daunting but at the same time exciting knowing that there is a solution out there.
We have a situation where my wife is not in an IVA, only me and there are some complications with that. However Melanie Giles and her team got us to the starting line, and we're off and running.
One of the things that perhaps is obvious but we didn't quite appreciate, is how the whole process has completely changed our outlook to money. It's now really worth something and we always look for ways to spend more wisely.
Yes, our lifestyle had changed but to be honest do I miss it? No! If anything we seem closer as a family and much happier. Interesting, eh?
So, good luck with your IVA journey and try and relax. It can be a pain with the constant pestering from creditors before the IVA comes into force but if you remain calm and firm then you might not find it too hard.
I trust you're in good hands and, once the IVA is up and running, are looking forward to the future.
Good luck with everything and thanks for your kind words. Who is this Melanie that i keep hearing about - maybe i do need to speak to more than one company - so far we have only had advice from Payplan and they seem very good but ,maybe its worth talking to a few before taking the plunge xx
Hi Clarebare. I can appreciate exactly how you feel as I am exactly at the same stage as you. I'm just waiting for my engagement letter from Melanie, in the mean time I am gathering my cc statements and bank account info so I can send it all in once I hear from Melanie. I'm also only just missing my first lot of payments and my stomach churns every time the phone rings, but once this initial stress is over it will have been worth it as I know I will be on a good road to getting my finances sorted out. These forums have been a lifesaver to me over the last couple of weeks and I still can't get over how supportive and understanding everyone is. Hang in there and we will get through this together [:)]
I totally understand what you are going through, we were in pretty much the same situation as you....our debt was lots more too!! Living off credit cards and everything spiralled. Most of our debt was with one creditor too. Our IVA got approved and we now only have 11 payments to make on it. Don't get me wrong it has been so tough and we have had to be so disiplined but I can sleep at night knowing we are doing our upmost to make things right again. I can't wait to be debt free and never ever want another credit card again!! I wish you the best of luck and fingers crossed. Our IVA is with Grosvener Partners, in London. I would highly recommend them. Let me know if you want any contact details for them.
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