Iva

williamwebster

Hello
I am just sorting an IVA with Debt free direct for @£27k of debt but have a couple of questions

I had a DMP in place with CCCS but defaulted due to maong othe reasons the loss of my baby daughter in July 08, they have told me that once you do this it is impossible to reinstate-anybody experienced this?

How easy is changing my bank account as I have an o/d in place and did not realise immediately this would be wrapped up in the debt

DFD have mentioned that at the end of the IVA at 5 yrs there is a possibility of equity in the home being pursued to settle the debt o/s amount, anyone have any detail on this

peachyprice

williamwebster wrote: »

Hello
I am just sorting an IVA with Debt free direct for @£27k of debt but have a couple of questions

I had a DMP in place with CCCS but defaulted due to maong othe reasons the loss of my baby daughter in July 08, they have told me that once you do this it is impossible to reinstate-anybody experienced this? You should probablt discuss this with the debt charities before you sign anything with DFD, while CCCS may not want to help you again Payplan may be happy to help.

How easy is changing my bank account as I have an o/d in place and did not realise immediately this would be wrapped up in the debt You will have to open a basic bank account with no OD facilities.

DFD have mentioned that at the end of the IVA at 5 yrs there is a possibility of equity in the home being pursued to settle the debt o/s amount, anyone have any detail on this It's usually in year 4 you will be expected to re-mortgage to release the equity for your creditors.

It really is in your best interest to speak to one of the debt charities before you sign up with DFD, they are not one of the best IVA companies and as they are in it to make a large profit from your misfortune will do all they can to sell you an IVA which isn't necessarily suitable for you.

Consumer Credit Counselling Service - Website: CCCS Telephone: 0800 138 1111
National Debtline - Website: National Debtline Telephone: 0808 808 4000
Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre

MurrayMint

Hi,

I don't have the answers I'm afraid, but I have another question to add...;)
If you've agreed to an IVA of say 50% of debt plus fees of £X, in year 4 of the IVA, if you had the equity, could they force you to remortgage for the remaining 50%, so in actual fact you would have paid 100% debt plus £X fees??

I'm struggling to understand how this part of an IVA works, there doesn't seem to be any clear guidance about this. What if you can't borrow the money - how do you release the equity? How should you repay the secured loan (equity release) if you couldn't afford the debt repayment? Do you have to borrow it from any sub-prime lender willing to touch you and therefore pay high interest?

Thanks for any answers!
MM

williamwebster

Peachy and Murray Mint

Thanks for the info, I am sure that I did get to DFD via the National Debtline and assumed all connected so interested to learn the situation

I have discussed in detail with DFD but signed and agreed to nothing yet as as reviewing cancelled tax credits to increase reduction of income as was in a negative state. I was not aware of payplan until last week so may chat to them as really unsure what to do although I know I must do something as this is really getting to me as have family and commitments

re the year 4 thing does this imply a requirement to do this in all cases as I am nervous of a 5 year agreement which may then be dramatically affected in the 4th year

peachyprice

They can't make you re-mortgage of you really can't. You usually have to submit 2 quotes for re-mortgage and if it's clear this would cause you hardship or no-one will touch you with a barge pole they have to convene a creditors meeting to decide how they wish to proceed. This can result in them asking you to pay into a 6th year.

milliemonster

If you can't remortgage in year 4 (which, lets face it, how are you going to be able to do that when you are in an IVA?) then the IVA is at risk of failing and you can end up bankrupt, this is why so many IVA's fail

Why don't you post your thread on the Bankruptcy board? they have a whole wealth of experience of IVA's on there and can probably give you better information

pmyhill

DO NOT use Debt Free Direct, I was originally in an IVA with them and I got shafted left right and centre by them !!!

Try speaking to myvesta (http://myvesta.org.uk/) they assisted me greatly and I am no longer in the IVA and sorted out a dmp directly which has worked wonders.