Iva recommendation

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Lincolnshire123
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by Lincolnshire123 » Tue Sep 19, 2017 8:35 pm
Hi all firstly want to thank the forum as it has been brilliant and has really given me some hope.I recently filled in my financial situation with stepchange ( my finances were getting out of control) and it came up with Iva as the best option. I Am awaiting a phonecall from an IP. I am in 65k of unsecured debt I have just recently changed jobs around 32k a yr. previously I had a job around 36k. One question I have is would the lack of wage slips for current job be a problem? I have mortgage (around 46k) and house is worth somewhere in région of 80k. Also I am married all bills mortgage debts are all in my name but wife is student and has a little part time job around 500 pound a month will this get taken into consideration? Any info would be much appreciated. Does this sound phesable for Iva I know every case will be different but really don't know what else to do. Many thanks again
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Michael Peoples
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by Michael Peoples » Wed Sep 20, 2017 8:24 am
An IVA does sound like a viable option for you. Your wife's income should be taken into account but only to show affordability and her own money is hers to spend. I would be surprised if you speak to an IP at Stepchange but make sure and ask because if you cannot speak to one now then you have little hope later if there is any need.

Do take a second opinion from an independent, professional firm as bear in mind that Stepchange are funded by the very creditors to whom you owe money. In addition, they farm out IVAs to other firms so even if it is the right option for you there is a possibility that your IVA could be handled somewhere else. Ask to speak to the IP and get confirmation that your IVA will be dealt with in-house before you commit.
Lincolnshire123
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by Lincolnshire123 » Wed Sep 20, 2017 8:44 am
That's great thankyou Michael. I went to step change as I've read online to make sure you use one of charities etc etc. How long does it generally take to get an Iva through? And in regards to my change in job will this be a problem? Many thanks
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Foggy
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by Foggy » Wed Sep 20, 2017 8:44 am
I can only echo Michael's thoughts. Stepchange do seem to run IVA's fairly, but I doubt you will ever get to speak to an IP -- they have thousands of creditor referred cases dealt with by one or two IP's, who can only "rubber stamp" what the case workers do, given the time and resource restraints. As mentioned, they also "farm out" proposals to other firms (or at least used to), either to alleviate their workload or becasue the matter isn't straightforward from the outset -- you could find yourself being dealt with by a firm you would not have chosen (or even get on with).

I would suggest a chat with one or two small / medium firms, with a decent IP / client ratio and where you can talk directly to the guy who you are paying if need be. Perversely, in my experience, the firms where you have free access to your IP are those where you rarely actually need to speak to your IP.
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Foggy
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by Foggy » Wed Sep 20, 2017 8:49 am
Lincolnshire123 wrote:
That's great thankyou Michael. I went to step change as I've read online to make sure you use one of charities etc etc. How long does it generally take to get an Iva through? And in regards to my change in job will this be a problem? Many thanks



The so called "charities" are funded by the creditors and are, possibly, somewhat biased in their direction (only my, uninformed, opinion) , which is why the creditors themselves advise going to them (maybe!?).

It usually takes around 8 - 12 weeks, depending upon the speed you can get your details / paperwork to them. Job change shouldn't be a problem -- you can show them your job offer, early payslips, confirming your stated income, which will also be backed up by bank statements --- they may wish to see wage slips monthly, going forward, to establish the pattern --- some firms ask for them anyway as it keeps things on track more efficiently.
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Michael Peoples
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by Michael Peoples » Wed Sep 20, 2017 8:52 am
The job change would not be an issue although you may be asked for a reason. This could be because the new job is closer to home, more secure, better environment etc and people do not take a pay cut without a good reason. I can understand why you went to Stepchange as the propaganda machine out there advises people to do that. What it does not say is that Stepchange get paid fees for IVAs exactly the same as any other firms but they have very few actual IPs. We do 80-100 IVAs per month and have 4 IPs on the staff and each one is happy to speak to their clients as and when required.

The process should take between six and eight weeks depending on the difficulties in the case. It can be quicker and sometimes longer but that would be a reasonable average. If you have a fresh bank account and all your details the process could be as short as three weeks but that is very unusual.
Lincolnshire123
Posts: 15
by Lincolnshire123 » Wed Sep 20, 2017 8:55 am
That's great foggy thanks. So I guess I will just wait to hear back from step change and go from there. Are there any firms you would recommend if I did go through the step change route? I feel pretty ashamed that it has got to this point but just can't loose the house and I read bits and bobs about paying a set amount and then doing an equity release on my property. Obviously if I could avoid this tht would be amAzing but realistically I know I owe the money and creditors have every right to recoup as much as possible through equity release
Lincolnshire123
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by Lincolnshire123 » Wed Sep 20, 2017 8:58 am
Thanks michael. I obviously haven't committed to anything with stepchange yet so what would be a typical fee for Iva with an indépendant firm and is the fee only paid if and Iva programme is successfully set up?
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Foggy
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by Foggy » Wed Sep 20, 2017 9:08 am
Lincolnshire123 wrote:
Thanks michael. I obviously haven't committed to anything with stepchange yet so what would be a typical fee for Iva with an indépendant firm and is the fee only paid if and Iva programme is successfully set up?



As Michael mentioned the charities get the same fee as independant firms --- usually set or amended by the creditors who prefer a percentage based fee (typically 15% of realisations for the Supervisors fee) and a set fee of around £1500 for the Nominees fees ( setting up the IVA). Most firms do not charge anything if the IVA is not agreed. All of these fees come out of your regular monthly payment and are not additional.
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Michael Peoples
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by Michael Peoples » Wed Sep 20, 2017 9:15 am
Very few firms now charge up front fees and the fees themselves are pretty standard throughout the industry. The only time you would noticeably pay the fees is where you repay in full and if this happens you can usually negotiate with the IP anyway to get the costs down.
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Lisa Thomas
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by Lisa Thomas » Wed Sep 20, 2017 9:42 am
I'd be happy to chat to you/give you a second opinion.
Lincolnshire123
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by Lincolnshire123 » Wed Sep 20, 2017 10:07 am
I have just spoken to a guy named Justin at McCambridge and Duffy. He was brilliant not judgemental atall and very reassuring on the phone. I am awaiting paperwork. I feel I have made the first important step a long way to go but he sounded confident on the phone. Thank you everyone very much for your comments and advice.
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kallis3
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by kallis3 » Wed Sep 20, 2017 10:20 am
McCambridge Duffy are recommended on here and Michael Peoples can always be contacted via the forum. We are all here for you as well.
Lincolnshire123
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by Lincolnshire123 » Wed Sep 20, 2017 12:09 pm
Just another quick one nearly 50% of the debt is a creation personal loan that was taken out about a yr ago. Would this be a stumbling block? Are creation notorious for rejecting an Iva especially as I should still have 4 years to run on that?? Many thanks
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kallis3
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by kallis3 » Wed Sep 20, 2017 12:22 pm
Shouldn't be a problem as far as I am aware.
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