Going for a new IVA - sorry for the long post!

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Clara B
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by Clara B » Sat Apr 15, 2017 11:45 am
Hello there,

I have been in a DMP for almost 2 years and am now looking at trying to get an IVA. I lost my job after having a year off sick 2 years ago due to a broken ankle and lots and lots of surgery which is now all done. I got a new job within 3 months of the last lot of surgery but the salary was a lot lower so I couldn't meet my repayments on a few debts and spoke to Step Change who then recommended a DMP. Prior to this I'd been paying nothing for 3 months and my creditors were actually really sympathetic, barclaycard even sent me flowers! All of my creditors didn't even chase me once I provided medical evidence. If I carry on in the DMP I will have over 10 years of payments ahead and I have just had a big pay rise which means I can pay more to creditors. This means I now can afford to repay £206 a month rather than the £65 I have so far been paying on the DMP and I have been advised that this will mean that I can pay enough to try to get an IVA. My DMP payments have been changed from next month to reflect my new salary and will be the £206 which is also the payment I would be able to pay for an IVA.

So far I only have a letter proving the new salary, I won't get my first payslip at the new rate until the end of this month. I have an appointment to discuss IVAs later this week with stepchange but am trying to find out as much as I can before then. Do I need 3 payslips at the new rate or would the letter be ok for a proposal?

I'm also wondering how incremental pay rises affect an IVA? I will get one each year for the next 5 years so would they just increase payments to the IVA as I get the rise?

I have also read that you should speak to 3 different Iva providers prior to deciding who to go with, are the fees that different between them?

So far it seems to me that if I can get the IVA then it's not going to be much different to being in the DMP as far as my day to day finances are concerned. I'm already on a strict budget and have been for 2 years. The remortgaging is different but if I lose some equity then so be it, I feel it would be worth it to be out of this mess and with an IVA there is an end in sight sooner. Most of my debts are a result of my abusive ex and it would mean I would have less reminders of him sooner!

Sorry for all the questions, just want to be fully informed before I decide!
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Foggy
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by Foggy » Sat Apr 15, 2017 11:58 am
Hi. The reason we suggest speaking to a few providers is because they all operate IVA's slightly differently, especially where there is discretion involved. The fees are much the same across the board and are, these days, usually set by the creditors anyway. Of the two so called "charity" firms I would tend towards Stepchange, as the other has the habit of sucking the solvent spouse into liability for payments. However, in the past Stepchange has "hived off" cases to another firm which takes a harder line -- no would have no say as to whether they do this with you -- it is the luck of the draw.

On the equity front, some firms calculate the available equity differently .... most base this on 85% LTV, but some base it on 85% of the equity share (which is usually more expensive for you) ... so get this clear from the start. Also, from 2014 onwards a new equity clause was introduced allowing for the introduction of a secured loan, if a remortgage was not possible. Again, some firms do not use this, which would be a better option.

Have a good read around the forum -- you will see the good and the bad (in our experiences) and get a feel for the bugbears we share. Feel free to ask any questions.
Clara B
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by Clara B » Sun Apr 16, 2017 9:59 am
Thanks Foggy,

The debts are all in my name and we weren't married so would they still chase him? It's more that he spent all the money we had on alcohol so I ended up paying bills etc on credit cards which were in my name and also couldn't repay my student overdraft etc as there was nothing left to pay it with. I was on top of payments after leaving and would have been debt free by now if I hadn't lost my job, pfft! As they were all in my name would he have any liability? It's been so long since I've had any contact with him and if he was chased for any of this my safety would be out of the window so I really don't want to go down any route where he could find me. Thanks for raising this possibility, I will really have to explore this bit more before signing anything!

I will also ask how they calculate the equity part so thanks for the heads up on that.

Does anyone know any other companies who are good to speak to to compare terms and conditions?

Thanks

Clara
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Foggy
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by Foggy » Sun Apr 16, 2017 10:15 am
It is Payplan who tend to draw solvent household members into the IVA ... but as he is not a member of your household that wouldn't be the case. If the debts are all in your name, he would have no involvement ... any joint debts, he would still be liable for.

I cannot specifically name any firms but, of course, the forum Sponsors, Vincent Bond can give advice --- they will pass you on to one of their panel of insolvency firms once you have decided what you wish to do. McCambridge Duffy, as far as I am aware, use R3 terms and conditions, calculate equity using the "usually accepted" (and fairer) method and do not yet use the secured loan option for equity release.
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moira717
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by moira717 » Sun Apr 16, 2017 11:26 am
Hi foggy, was reading above posts and noticed you spoke of step change giving off some of their iva s. Just wondered how often this happens and at what point. Do you have a say in this etc. Had no idea they could do this and as I am with them am curious
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Foggy
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by Foggy » Sun Apr 16, 2017 12:09 pm
moira717 wrote:
Hi foggy, was reading above posts and noticed you spoke of step change giving off some of their iva s. Just wondered how often this happens and at what point. Do you have a say in this etc. Had no idea they could do this and as I am with them am curious


Hiya --- I am not sure if this is still the case but they used to farm out the less straighforward cases (and possibly surplus numbers-wise) to GT ... now Aperture. At what stage I do not know -- but pre-creditors meeting. We have had mention in the past of people not realising until already into their IVA's and finding there IP was from a different firm. Many people enter into an IVA in somewhat of a "blur", so these things can easily be missed -- when someone throws you a lifebelt you do not usually pay much attention to who, but concentrate on the belt itself!
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moira717
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by moira717 » Sun Apr 16, 2017 12:16 pm
Thank you for your reply. That must be frustrating, as you read up on company you sign up to but to be passed to a different company you may not have wanted to deal with seems bit unfair. All my paper work still has stepchange details on so hopefully this means I will be with them for the duration??
Clara B
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by Clara B » Sun Apr 16, 2017 6:19 pm
Phew, glad they won't chase him! That's a big relief.

Moira, how have you found stepchange? I've been doing my DMP with them and have found them really helpful so wondering what they have been like with your IVA?

I did speak to Vincent Bond a while back when I first lost my job, might give them a call again to discuss IVA's. It can't hurt to speak to a few companies and find the best terms.
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moira717
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by moira717 » Sun Apr 16, 2017 7:16 pm
Have to be honest as heard mixed reviews for stepchange. Did feel bit pushed into a 6 yr rather than 5 yr via ( even though my husband bought house even before we met) but think my pennies in the pound payback was quite low. However cannot fault them so far, everything has been dealt with in specified time. I know when you ring , you are ringing a call center but all very polite and deal with most questions ( any other questions I use this forum for!!). Anyway so far s o good, have only just had my iva accepted so early days but no complaints so far. Definitely worth getting advice from few companies though. Good luck to you
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luna
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by luna » Sun Apr 16, 2017 7:22 pm
Hi
We had no issues with Stepchange so can only recommend how well they operate.
We had a huge debt and several complications like an interest only part of mortgage expiring during IVA and a new car still on finance but they enabled us to sort it all. Also they don't bother with PPI which seems to be a hassle for many to get completed.
No hassle either with sorting extension in lieu of equity.
Good luck
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Clara B
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by Clara B » Mon Apr 17, 2017 9:28 am
Thanks both,

I speak to stepchange on Thursday so think this week I will also contact a few other Iva providers and compare the terms etc.
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moira717
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by moira717 » Mon Apr 17, 2017 7:16 pm
Good luck, let us know how you get on. I got desperate as company I first emailed failed to contact me at agreed time ( although later tried to put things right) and time was an important factor so contacted step change. As said previously n o complaints so far.
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Lisa Thomas
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by Lisa Thomas » Tue Apr 18, 2017 10:00 am
As the others suggest shop around for more than one opinion. I'd be happy to chat to you.
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