Hsbc refused our IVA offer

mdstevensuk

We are absolutly gutted and don't know which way to turn now.

After struggling for the past 4yrs with paying my ex £55k to save my home family home, redundancy, children moving out and loss of benefits and the increase in intrest rates, HSBC decided the week before christmas to withdraw our overdraft and then told us we had 2 weeks to find 2k to repay it. We called them and explained our circumstances but where basically told tough, we would have to defult.

My husband and i decided that maybe it would be best to look at an IVA. We spoke with Baines & Ernst who talked it through with us. We filled in all the forms sent out relevent copies of debts, wage slips etc. We thought at long last there would be light at the end of this long tunnel. Day to day living with the phone calls and letters from companies sending threats if we did not pay was difficult. No matter how many times i told them we where filing for an IVA they would not stop. I am now on anti-depressants and sleeping pills as i am at my wits end.

Last wednesday was our creditors meeting and was told that HSBC wanted to add interest over the term of the 5yr IVA and where not satisfied with the agreed 20p in the pounds (the max we could afford) and wanted 40p. All the other creditors where happy. We are not sure where to go next. Our mortgage is with HSBC and we have had our house for sale for 3yrs with no intrest. We are in negative equity. The house deeds are in my name only but my husbands name is on the mortgage.

Can someone please please help. I have been told bankruptcy is our only way out by the CAB but if we loose our home we have no where to go as we don't have money for rental deposits etc and i still have my 17yr old daughter to support.

spenderblender

I think you need to go over to the bankruptcy board and talk to the guys over there. Don't fret they are a great bunch and will give you the right advice. You will only loose your home if there is money in it for the OR as far as I know which, is why I would say relist your thread over there.

tmcd01

DONT PANIC. Br does not always mean losing your home. Get over to the BR board, there are plenty of people who know their stuff. There is always a way to sort these things.

RAS

Hi

Please get proper advice from a debt charity before you do anything more, rather than a company that has its profits to make. http://www.moneysavingexpert.com/loans/debt-help-plan#help

They are busy but they know how to help you more effectively and have more options available.

You may be able to do a DMP or it may be that bankruptcy is appopriate. Neither would necessarily be a disaster. In the short-term, pay the mortgage, council tax and any secured debts. Feed yourselve and ay the utilities and then pay a bit of money to al the other creditors, prorata.

Get a new basic bank account and get all your income paid nto it pronto.

pa49

RAS wrote: »

Hi

Please get proper advice from a debt charity before you do anything more, rather than a company that has its profits to make. http://www.moneysavingexpert.com/loans/debt-help-plan#help

They are busy but they know how to help you more effectively and have more options available.

You may be able to do a DMP or it may be that bankruptcy is appopriate. Neither would necessarily be a disaster. In the short-term, pay the mortgage, council tax and any secured debts. Feed yourselve and ay the utilities and then pay a bit of money to al the other creditors, prorata.

Get a new basic bank account and get all your income paid nto it pronto.

Read the last from RAS and do this immediately.
If you can't get a new current account find a saver account (try Abbey) that issues a cash card.You may not get a debit card, but that may be to the good when trying to rein in your spending. If you operate the saver account correctly for some time then you can upgrade to a current account. I went through this and I am in a better and stronger position than before.
Also think twice before putting anything on Direct Debit no matter what type of account you operate. I refused to have any from about 5 years ago and that has helped a lot. If you have any and they are not met for whatever reason then the bank will note your file and possibly register it with a credit reference agency. This will definately affect your ability to recover from your situation.

On the matter of IVAs as you have filed and are in negotiation then all attempts at collection should have stopped even if only on moral grounds as you can visibly show your attempts to resolve the situation. If you have someone acting on your behalf then ALL approaches to yourself should be politely directed to your Insolvency Practitioner. Do not discuss matters with the creditors directly.

Furthermore, is there any substantive reason for not including all your debts? If you included everything then HSBC's position would be further weakened and 20% would become more attractive to them if they see the higher paybacks receding. You may be able to suggest this to you IP as a bargaining lever although they should have explored this already as they are obliged to act in your interest when attempting to obtain a settlement.

Also, any settlement that is reasonable as a result of your current financial position should be sympathetically appraised by your creditors and maybe HSBC believe that you have more money to put into the pot than you are disclosing in the IVAs details. If the other creditors are happy and they constitute at least a minimum amount (the amount escapes me for the moment) then the others, even if they have initially refused, have to fall in line. That's another reason to consider including all your debts no matter how small.

Hope this may be of help, but remember it can be sorted out!

J1WUK2000

I really feel for you with your case with the HSBC. If you do not wish to go down the bancrupcy route and you have been rejected for an IVA your only option is a debt management plan.

Then at some point in the future you may be able to go back and try again at an IVA. Companies policies change all the time especially in the current markets. This will give you time to find you feet, take the pressure off you for a few months and look for work. etc

I read so much bad advice on these boards and it really is a minefield out there!

I am a little concerned as to why the CAB would be telling you to go down the bancrupcy route - If I was you, I would speak to a some debt management companies and see what they have to offer, people tend to slag them off on the boards but what they forget is your paying for a service as not everyone is capable of dealing with tricky organisations.

Good luck and I wish you well.

Trollfever

I am a little concerned as to why the CAB would be telling you to go down the bancrupcy route

I would guess that CAB had the benefit of a SOA.

Cash_Waster

From what I was told before BR, the HSBC will only accept minimum 40p in the pound for a IVA. Me and the OH owed 18000 to them jointly so an IVA was a complete no go as the charities told us