debt managment or iva

superwoman29

Betweeen myself and my husband we owe £40,000, loans and credit cards, it has come to the point where we have no spare cash, we never go on holidays, we often have to turn down invites from friends because we just can't afford to do anything, this has started to effect my health, i'm finding myself delving in depths of depression, i now have IBS.
A couple of months ago i added all of my debts into debt managment with Gregory Pennington, they never asked what all my outgoings were for the month just my debts, so i'm left with no money at all, also i don't find them every helpfull as i'm always being chased for money by my creditors, which gp sare supposed to be paying????.
So i contacted the cab, and we are putting all debts together, they suggested a iva, i have a bad feeling about this, abd worried that i could have some possesions taken from me ie car, its 13 yrs old so it's worth nothing, does this sort of thing happen.
Has anyone got any tips, advise or further suggestions.

Deep_In_Debt

Hi
Firstly, do speak to other charities - CCCS and National Debtline who do not charge for their services and if you can transfer your DMP from Gregory Pennington to CCCS so that all your money goes towards your debts and not lining the pockets of these sharks.

Do you have your own home? IVA's are only suitable for a small percentage of people who have assets to protect such as property as you may be expected to re-mortgage to release equity in your property usually in year 4. Your living expenses are stripped back to the bare minimum and remember a lot can happen in 5 years and if you can't keep up repayments on a IVA, this could end in bankruptcy. DMP's are much more flexible. I'm on a DMP with CCCS and I have a comfortable standard of living and they are much more flexible.

Read Martin's guide on IVA's at the top of this forum also go to the CCCS website and try their online debt remedy which will advise the way forward for you.

Good luck.

fermi

First of all, get rid of Gregory Pennington. :eek:

You don't need to use a fee charging company if a DMP is the right way to go.

CCCS run them for free and will assess you budget properly.

Link: Consumer Credit Counselling Service (CCCS)

They will also be able to tell you if an IVA is suitable. If one is suitable then the can help set one up for minimal costs.

See Martin's IVA Guide.

Cars and possessions are not normally lost in an IVA, unless you are asked to sell them because they have a very very high value; e.g. luxury cars etc.

doelani

hello superwoman

You have done the right thing coming here for advice, like other posters have suggested you need to get rid of GP, You should contact cccs or payplan for advice.

You are probally feeling scared and that it will never be sorted but it can be. You need to tackle this together though, you say you have entered a DMP what about your husband? Do you own your house?

An IVA is not suitable for everyone and unless you own your house or your job is at risk by bankrupsy it is not the ideal solution.

superwoman29

thankyou for all your help, i am going to call cccs, i need to cut all my debts right down, life is really tough at the moment.
We don't own our home, we rent at the moment, as with have so many debts we can't move because we can't afford to pay any higher rent.
I really have a bad feeling about an IVA, i think dmp would be better.

fermi

Good.

As others have said, an IVA is normally only for those who can't go for bankruptcy due to assets or their job. CCCS only recommend them to about 3% of the people they advise. Unlike many of the commercial firms, they won't try to push you in to one if it's not suitable or you don't want it.

If you switch your DMP to CCCS (or stay on one anyway) then see DMP Mutual Support Thread where there are lots of people in the same position.

10past6

superwoman29 wrote: »

So i contacted the cab, and we are putting all debts together, they suggested a iva

Sometimes, those that appear to be specialist in their field actually have no idea.

Deep_In_Debt

If you are renting then I would say an IVA is not suitable for you as you have no assests to protect. They are great money making tools for companies preying on those in debt who are desparate. I was recommended an IVA by 3 fee paying companies - I have property to protect and my (now ex) job was regulated by FSA so bankruptcy not an option. CCCS recommended an DMP as did CAB and National Debtline. Glad they did, as 9 months down the line, I've been made redundant and could be facing bankruptcy now and losing my home whereas my DMP is flexible and I will just reduce my payments until I get myself sorted again. My DMP is the best thing I've done for a long time. I have a reasonable standard of living and CCCS are there for help and are non-judgemental and supportive.

superwoman29

At the moment it all seems really confusing, i'd rather have a dmp, an iva just totally confuses me, i have spoken to the cab, they have suggested an iva would be best, they have put me through to Debt free direct, i hope these aren't another Gregory pennington??
As i'm already with Gregory pennington and currently paying my creditors a set amount, will they accept any more changes through another company.
Gregory Pennington keep ringing saying the creditors won't accept certain amounts and could i pay more.????

fermi

superwoman29 wrote: »

i have spoken to the cab, they have suggested an iva would be best, they have put me through to Debt free direct, i hope these aren't another Gregory pennington??

Please please don't go with Debt Free Direct (DFD). _pale_

I post a lot on the bankruptcy sub-board here on MSE, and the name "Debt Free Direct" direct is little more than a swear word.:rolleyes:

There are quite a few former DFD clients there who were either mis-advised that an IVA was suitable, or who were forced into bankruptcy by DFD demanding more than they could really afford.

The phrase "don't touch with a barge pole" is rarely more appropriate.

To be honest, I think most creditors will be happier that you have gone with CCCS. They will know that they will be getting more since you will not be having to pay part of your funds as fees to GP.

10past6

superwoman29 wrote: »

At the moment it all seems really confusing, i'd rather have a dmp, an iva just totally confuses me

OK, to put it in simple terms, an IVA is only applicable to those that have an asset to protect, like their own home / job, as you are renting, basically this excludes you from an IVA.

IVAs are confusing, but for your situation I think it's best for you to think, "An IVA is not for you"

Forget about an IVA and focus on doing a DMP though one of the charities, some members do their own DMP, some are with CCCS, and some are with Payplan, myself included.

This forum is to guide you with any questions you have, so no matter how stupid the question may seem, if something is concerning you, ask away.