I am concerned I have got advice from an Iva provider about my debts and they feel an Iva is the way forward which I agree with but they have said I will need to wait 6 months to have clear bank statements due to the level I have gambled. What I am concerned with is that during this wait a lot my credit cards will no longer be interest free from November so my interest will go through the roof. They have also said don’t favour any creditor so my overdrafts will go over overdrawn so that will get charges and go through the roof. I presume then all the banks/ credit card companies will then start sending me demands or sell on my debt to collection companies who will ten start sending demands. Do you know of any threads on this site with similar situations or could offer any advice?
You will need to prove you have stopped gambling. As to your other debts I'm afraid they will have to be included and you may well get letters and phone calls as we all did. Initially you can go into any cards etc and delete your contact details.
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
I would suggest asking about setting up a debt management plan whilst waiting. Some IVA providers do not handle DMP's so you might have to look elsewhere. I would suggest a firm like Stepchange, who, due to their charitable status and creditor funding, handle DMPs for no fee, making them more attractive to the creditors.
In the time you are waiting maybe take some steps to set up a new bank account and have your income paid there and try offering token payments to the creditors, but don't have your income go to the bank account with the overdraft. Also you could perhaps try a bank with a facility to block gambling transactions and do so as further evidence of stopping - I have 2 accounts at the moment, I use Coop for my wages and direct debits then transfer the money for food etc into Monzo as they have instant balance updates when you spend and I am not forever tracking receipts and transactions going out. I know Monzo are one of the banks you can block gambling.
Some really useful advice here thanks very much. Some of which i have already done and some i will do now.
I think my main question is between the 6 months i have to wait how concerned should i be that they will sell on my debt and be taken to court? At the moment my creditor are all the major banks but if they sell onto debt companies will they be less agreeable to the IVA.
In your experiences should i be phoning/writing to them to tell them i am going via a debt solution.
The overdrafts are a bit of a concern as i am not supposed to favour any creditors but my token gesture wont even cover overdraft fees... will they then sell on the debt or take court proceedings?
Also will they send people to my door as this will stress my partner out if i am out and she has to deal
If they agree to a DMP, and many creditors do, it would stop any action for now (not enforceable, but voluntarily).
Selling on debt has benefits to you as well as drawbacks: On the plus side the new owner will have paid a fraction of the debt value and so the smaller payment in a debt solution will still produce a profit -- which is all they want -- without spending out on enforcement and collection. On the negative side, some debt purchasers can be quite forceful.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
In the time my iva was going through the admin stages (two months) I was advised to start living in my new budget and explain to the banks I would make them token payments divvying up the amount I had left over (the amount I pay stepchange each month now) and paying it pro rata to the creditors. I wrote to each bank with a template letter saying I was having difficulties and had been in discussions with stepchange. My budget meant I could afford to pay xxx to my debts each month then listed how much I was paying each debt. I was amazed at the replies. Every bank and lender apart from first direct just accepted it and wrote back saying the would allow some time before further action. I chose to write rather than call as I was too emotional at the time to make calls.
I made no payments at all which allowed me to build up a bit of a contingency fund for emergencies and had no problems with creditors.
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
Mon Sep 09, 2019 2:09 pmmike709 wrote:
Thanks for all the advice here - most i had planned to do but this just reinforces what I need to do / writing to banks etc
Many Thanks
I would suggest maybe trying to speak to different firms
just from personal experience, a week or 2 before i spoke to vanguard about setting up an IVA i had about 4k worth of skybet deposits on my bank statement from the previous week. (money transferred the full balance of a credit card to try and win enough to pay off all my debts- stupid i know!)
the lad i spoke to said something along the lines of 'see you had a bit of a wild week last week'
however there was never any mention after that, the credit card i had just balance transfered did vote no on my iva meeting of creditors but the others voted yes so it worked out ok,
maybe give that a go if you dont wanna wait 6 months?
IVA Started 07/07/2017
F & F Accepted 06/09/2019
Completion Certificate 16/12/2019
Feel free to keep raising your questions, seeking assurance...we have heaps of experience amongst the mentors having all been through iva so know exactly what you are going through.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
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
I had alot of gambling transactions when I was referred to Vanguard through Faith Financial and they made me wait a month so that I had a months bank statement clear of gambling. They also asked for a screenshot of online gambling account being closed. Vanguard didn't mention the gambling once I was reffered.
Having read the replies i am now thinking of contacting a different IP as waiting so long will start to get stressful and also I just want to get started as presume there will be long delay in all the paperwork going through.
My dilemma is should I be patient and use step change - which is well known trusted provider/ charity (ethical)which most companies suggest you go with - or do I go for a provider less well known.
On this forum has anyone noticed any IP with very good reviews .?
Wed Sep 25, 2019 4:55 ammike709 wrote:
Having read the replies i am now thinking of contacting a different IP as waiting so long will start to get stressful and also I just want to get started as presume there will be long delay in all the paperwork going through.
My dilemma is should I be patient and use step change - which is well known trusted provider/ charity (ethical)which most companies suggest you go with - or do I go for a provider less well known.
On this forum has anyone noticed any IP with very good reviews .?
I would mention the Step Change is often referred to by the creditors because they, the creditors, fund both Stepchange and Payplan, in part. They are no more nor more less 'ethical' than any reputable provider, and have just as many shortcomings, as well as successes.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
