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  • FIRST POST
    • Fizz Bomb
    • By Fizz Bomb 14th Oct 16, 1:24 PM
    • 34Posts
    • 10Thanks
    Fizz Bomb
    Petrified of starting IVA
    • #1
    • 14th Oct 16, 1:24 PM
    Petrified of starting IVA 14th Oct 16 at 1:24 PM
    Hi, I am fairly new here after lurking for years... I am really pleased to have found this IVA forum as some posts about them on the main forum have frightened me to death.
    I about to embark on an IVA after a year of deliberating, burying my head in the sand and accruing more debt.
    I have been sent a proposal by Vincent bond who have been lovely and I have to say incredibly helpful. But I am petrified of signing the document and going for it. I haven't missed a single payment on my cards to date and the thought of stopping, shipping my money out of my long serving bank account and bracing myself for phone calls is pretty scary; but the thing I'm most scared of is having no credit to rely on going forward with christmas coming. I am a single mother to two boys who I desperately want the best for.
    An iva or bankruptcy are my only options; I am minus £400 each month which has been going on credit. I owe approx 35k including an unsecured NRAM loan and have no way of paying this back.
    There is no real point to this post really, I am an emotional wreck at the moment and really don't know where to turn. An additional worry is what will happen if the IVA is rejected, which I guess it very well could be with plenty of recent spending and an offer of £110 a month.
    Thank you for letting me ramble.
Page 1
  • National Debtline
    • #2
    • 14th Oct 16, 6:31 PM
    • #2
    • 14th Oct 16, 6:31 PM
    Hi Fizz Bomb


    I have only glanced very briefly at your previous posts so forgive me if I'm overlooking something here (I know my colleagues have made one or two observations) but here are a couple of thoughts:


    Rejection of an IVA for the reasons you cite is really very unlikely. Vincent Bond will not waste time and energy drafting a proposal that is at risk of being knocked back. A lot of creditors often pass up the chance to vote at all, in which case they are assumed to approve. As such, they are unlikely to scrutinise your recent spending to the third degree.


    Any return your creditors get from an IVA is likely to be a great deal better than if you went bankrupt, for sure. Another reason it's hard to imagine them turning the IVA down.


    Finally for now, you mention your worries about meeting the cost of Christmas. Clearly you're going to find yourself cutting your cloth a bit finer this year, but for now why not simply cancel your debt repayments (as they are clearly unaffordable)? According to your SOA you have a little bit of disposable income - for the next month or two it might be wise to ring-fence that as your emergency fund/Xmas budget/whatever you want to call it.


    You don't need to jump straight from making full repayments to an IVA - you can take time inbetween to reflect on your next steps.


    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • Fizz Bomb
    • By Fizz Bomb 14th Oct 16, 6:55 PM
    • 34 Posts
    • 10 Thanks
    Fizz Bomb
    • #3
    • 14th Oct 16, 6:55 PM
    • #3
    • 14th Oct 16, 6:55 PM
    Dennis, thank you so much for your reply, you have reassured me a lot. I guess just taking the plunge to cancel those direct debits is pretty scary.
    I have not yet opened a new bank account, is it wise to do this before taking any further action so that I can be sure Barclays won't take my money once they get wind of any difficulties?

    Thank you again
    • mwarby
    • By mwarby 14th Oct 16, 10:14 PM
    • 609 Posts
    • 226 Thanks
    mwarby
    • #4
    • 14th Oct 16, 10:14 PM
    • #4
    • 14th Oct 16, 10:14 PM
    My IVA was arranged through Vincent Bond, at the time they didn't do this themselves but referred you to a third party IP.

    I spoke to my IP during the setup and she was very confident, they don't take them too far if there's much doubt it'll be accepted as it costs them money. Assuming Vincent Bond are confident (maybe ask them how confident they are ?) try to relax and dont worry about failure until it actually happens
    • Fizz Bomb
    • By Fizz Bomb 15th Oct 16, 9:52 AM
    • 34 Posts
    • 10 Thanks
    Fizz Bomb
    • #5
    • 15th Oct 16, 9:52 AM
    • #5
    • 15th Oct 16, 9:52 AM
    Thank you very much mwarby. The guy at Vincent bond is confident it'll be fine. I think the problem is me and my hesitancy in signing. I am still using credit, guess it's a hard habit to break, but one I know absolutely needs to happen.
    • fatbelly
    • By fatbelly 15th Oct 16, 11:55 AM
    • 10,072 Posts
    • 7,553 Thanks
    fatbelly
    • #6
    • 15th Oct 16, 11:55 AM
    • #6
    • 15th Oct 16, 11:55 AM
    An iva or bankruptcy are my only options; I am minus £400 each month which has been going on credit. I owe approx 35k including an unsecured NRAM loan and have no way of paying this back.
    There is no real point to this post really, I am an emotional wreck at the moment and really don't know where to turn. An additional worry is what will happen if the IVA is rejected, which I guess it very well could be with plenty of recent spending and an offer of £110 a month.
    Thank you for letting me ramble.
    Originally posted by Fizz Bomb
    I have had a look at your previous thread and agree that your best 2 options are as above.

    I thought at the time that bankruptcy would suit you better but the lease arrangement on the car is a bit odd and might not be accepted in bankruptcy; in fact you could end up with a 3-year IPA of £400-500 per month so if they can swing a 5-year IVA at £110 you have done well.
    • mwarby
    • By mwarby 15th Oct 16, 2:03 PM
    • 609 Posts
    • 226 Thanks
    mwarby
    • #7
    • 15th Oct 16, 2:03 PM
    • #7
    • 15th Oct 16, 2:03 PM
    Thank you very much mwarby. The guy at Vincent bond is confident it'll be fine. I think the problem is me and my hesitancy in signing. I am still using credit, guess it's a hard habit to break, but one I know absolutely needs to happen.
    Originally posted by Fizz Bomb
    Is it Andy Davie by any chance, if so he knows his stuff(I'm sure others do too), I think he wrote a book on his IVA experience
    • sourcrates
    • By sourcrates 15th Oct 16, 11:15 PM
    • 8,306 Posts
    • 8,136 Thanks
    sourcrates
    • #8
    • 15th Oct 16, 11:15 PM
    • #8
    • 15th Oct 16, 11:15 PM
    Dennis, thank you so much for your reply, you have reassured me a lot. I guess just taking the plunge to cancel those direct debits is pretty scary.
    I have not yet opened a new bank account, is it wise to do this before taking any further action so that I can be sure Barclays won't take my money once they get wind of any difficulties?

    Thank you again
    Originally posted by Fizz Bomb
    Yes, you need to be on the ball here.

    A new basic bank account is a must have, ideally you want everything in place before you start the IVA.

    It's somewhat unusual to go from making payments one month, to an IVA the next, most people have long since defaulted there accounts before they do anything about it.

    I would cease all your credit payments for a while, get an emergency fund together, also make certain you budget correctly before hand, that's were most go wrong.

    My IVA finished in 2014, best thing I ever did to tackle my debts, once approved, you have a yearly review, that's it, you don't know your on one half the time.

    Good luck with it.

    For free debt advice please call National Debtline on
    0808 808 4000
    Monday to Friday
    9am to 9pm
    Saturday 9.30am to 1pm
    • Fizz Bomb
    • By Fizz Bomb 16th Oct 16, 8:54 AM
    • 34 Posts
    • 10 Thanks
    Fizz Bomb
    • #9
    • 16th Oct 16, 8:54 AM
    • #9
    • 16th Oct 16, 8:54 AM
    Not Andy Davie but Keith White. Good to know the firm have a good reputation though
    • Fizz Bomb
    • By Fizz Bomb 16th Oct 16, 8:57 AM
    • 34 Posts
    • 10 Thanks
    Fizz Bomb
    Thank you. Do you suggest I wait a couple of months before signing IVA proposal and default on payments during this time? The bulk of my debt is with Barclays who I also bank with, so I guess I'm anxious of doing this before moving all my wages etc out of the account.
    I think I will try to get that basic account open tomorrow and go from there.
    Thank you very much for your replies
    • owlet
    • By owlet 16th Oct 16, 10:51 AM
    • 1,473 Posts
    • 1,354 Thanks
    owlet
    Don't panic, it will be straightforward. I think you are in a situation where you can't see the wood for the trees at the moment - too many thoughts whirling around.

    1. Get a new basic account opened (nationwide flex basic is great)
    2. Contact payroll at work and get your pay moved to the new account.
    3. At the same time, cancel your direct debits to creditors & move essential living direct debits to your new account.
    4. Build up a fund for christmas and emergencies using the money you would have paid to creditors.
    5. Talk to your IVA advisor about the best time to proceed - tell him you need to build up a small emergency fund first - suggest that first thing January would be good perhaps.
    6. Do nos 1, 2 & 3 asap then take time to breathe and collect your thoughts.

    It's scary not having credit to rely on I know, but it's surprising how easy it is once the debts are out of the way. I had to go BR rather than IVA but those initial steps are the same. If you haven't yet defaulted that's good because it gives you more time to save that emergency / Christmas fund before you start getting hassle from them .

    Come back and let us know how you are going x

    Edit: remember that children don't need loads spending on presents to make it happy and memorable. Shop around and pick up a few bits in sales etc. My budget this year for my young nieces is £8 max each. I've now got their presents and two of them were just £4.95 each - and they are Disney activity books, which they will love.
    Last edited by owlet; 16-10-2016 at 10:58 AM.
    SPC 8 (2015) #485 TOTAL: £334.65
    SPC 9 (2016) #485 TOTAL £84
    SPC 10 (2017) # 485
    • Fizz Bomb
    • By Fizz Bomb 16th Oct 16, 11:58 AM
    • 34 Posts
    • 10 Thanks
    Fizz Bomb
    Owlet, thank you so much for your reply, I can't tell you how helpful this has been. Having a to-do list from someone is I think what I've needed.
    I looked on the nationwide website but it seems it will only let me open that type of account if I've been made bankrupt. Is it best to go into the branch and do I need to tell them I will be beginning an iva?
    Regarding missing payments, what can I expect from the creditors in that 2 month period? I guess if I'm prepared for the hassle and what to say I can cope.
    Thank you for your Christmas advice, I agree, I used to love the smaller gifts when I was a child too.
    Thank you so much once again.
    • owlet
    • By owlet 16th Oct 16, 3:20 PM
    • 1,473 Posts
    • 1,354 Thanks
    owlet
    I think the account is for those who can't get a mainstream current account, insolvent or struggling financially. When you apply, you have to tick a box to confirm. I would apply online and tick the box. It's not just for bankrupts.

    Maybe hassle was the wrong word - you should only get "you've missed your payment " letters in a two month period. If you do get any phone calls just ignore them or say you are working with advisors for a solution. You don't have to say any more if you are looking to start your IVA that soon. If it's a longer period before you start your IVA then you can arrange to make a token payment of £1 each month.
    SPC 8 (2015) #485 TOTAL: £334.65
    SPC 9 (2016) #485 TOTAL £84
    SPC 10 (2017) # 485
    • Fizz Bomb
    • By Fizz Bomb 16th Oct 16, 3:22 PM
    • 34 Posts
    • 10 Thanks
    Fizz Bomb
    Thank you, I've managed to open the account successfully online so at least that's a baby step for today. I am going to email Vincent bond tomorrow to let them know I'd like to wait a couple of months although I suspect he will tell me that it will make no difference.
    You've really helped owlet, thank you
    • Fizz Bomb
    • By Fizz Bomb 16th Oct 16, 3:25 PM
    • 34 Posts
    • 10 Thanks
    Fizz Bomb
    Just as a thought, since I bank with Barclays, if I suddenly empty my account and cancel all my direct debits and start not paying both my loan (Barclays) and barclaycards, are they likely to smell a rat a mile off and do more than send me non threatening letters?
    • owlet
    • By owlet 16th Oct 16, 3:28 PM
    • 1,473 Posts
    • 1,354 Thanks
    owlet
    Fabulous - that's great! You should get your new account details within a week. Remember to get your pay and any tax credits or benefits switched to the new account. With benefits it's a simple phone call and job done.

    Vincent Bond may well say it makes no difference but for YOU it makes a huge difference. Getting that emergency fund sorted and working out a sensible budget it key to your IVA being a success x
    SPC 8 (2015) #485 TOTAL: £334.65
    SPC 9 (2016) #485 TOTAL £84
    SPC 10 (2017) # 485
    • owlet
    • By owlet 16th Oct 16, 3:29 PM
    • 1,473 Posts
    • 1,354 Thanks
    owlet
    Just as a thought, since I bank with Barclays, if I suddenly empty my account and cancel all my direct debits and start not paying both my loan (Barclays) and barclaycards, are they likely to smell a rat a mile off and do more than send me non threatening letters?
    Originally posted by Fizz Bomb
    In a two month period they probably won't have time to do anything more than send missed payment letters.
    SPC 8 (2015) #485 TOTAL: £334.65
    SPC 9 (2016) #485 TOTAL £84
    SPC 10 (2017) # 485
    • Lincsdebt
    • By Lincsdebt 24th Oct 16, 12:51 PM
    • 76 Posts
    • 63 Thanks
    Lincsdebt
    Fizz Bomb


    You are getting lots of useful information here, I really just wanted to offer you my support.


    I had to enter an IVA six years back when my debts got out of control. I ended up owing over £100k, a totally frightening amount. So I understand you're scared (I was freaked out), but want to reassure you that you will be fine, I can't see the IVA failing under your circumstances. Make sure you declare all your outgoings to maximise what you have to live on.


    I received my completion certificate last week, it was a difficult six years, but in its way the best (although also only) decision I could make.


    Good luck with it all, this forum is a real support so if you need help make it your first stop for sensible advice!
    • sourcrates
    • By sourcrates 24th Oct 16, 1:45 PM
    • 8,306 Posts
    • 8,136 Thanks
    sourcrates
    Fizz bomb,

    Once you have filled in all the forms, your budget/expenditure etc, and sent them back to your proposed IP, the team dealing with your application will round off your budget and format it correctly, then include it in the initial proposal they will put to your creditors.

    This will happen via a virtual creditors meeting, which usually takes place by phone, or a postal vote, as long as your proposal gives them the best return as a pose to another method of debt remedy, it will be passed, sometimes a particular creditor may ask you to increase your offer, in order to accept it, as long as the IP have done there job correctly, it should be accepted.

    For free debt advice please call National Debtline on
    0808 808 4000
    Monday to Friday
    9am to 9pm
    Saturday 9.30am to 1pm
    • mwarby
    • By mwarby 25th Oct 16, 7:55 AM
    • 609 Posts
    • 226 Thanks
    mwarby
    Also regarding timescale, an IVA isn't the quickest thing in the world to setup. I can't remember exactly how long mine took but it was 1-2 months, some firms maybe quicker some slower.

    Once the process of setting up the IVA started most creditors were very good at not contacting by phone (the pay day loan firms went though, but a call blocking app on phone sorted that pretty quick.)

    As others have said no big rush, this will affect you quite a lot for next 5-6 years, may as well take a couple of months to get it right prep wise
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