IVA Questions

ad1jnl

My debt is £18k and just spoken to Baines & Ernst(??) who think this may be the right way to go. My student loan (old style) means it comes £25k which I know can't be included but is part of my expenses (£157 per month). I've not been managing on current income and have reverted to credit and payday loans to get by recently - I think that's trying to tell me something. My main concern is how it will affect the mortgage/house. Does any of the equity I have at the end of the 5 years become used to pay off remaining debt - My LTV when I took out my mortgage was about 92.5%. Also does this mean I won't ever be able to re-mortgage?

TBH it looks like the way to go to me and would actually mean I had enough to live on - totally struggling at the moment. Having said that also feel a bit ashamed things have come to this and this is to good to be true.

Not being able to get non-secured credit would be a blessing in disguise - so that part really doesn't bother me.

Any advice/opinions would be most welcome

CCCS_Matthew

Hi there,

When a property is involved with an IVA an agreement will be made to include a certain amount of equity into the proposal in the 4th year. This would normally have to be released by a remortgage. Of course this isn't always possible as it depends on what the market is doing, how much equity is in the property etc. So if a remortgage is not possible and you cannot release the agreed amount you will normally be expected to increase the term of the IVA by another year to compensate.

Hope this helps,
Matthew.

ad1jnl

Thanks,

I've also been on the CCCS website after reading Martins IVA lowdown. The online debt thingy reckons I'd be better with a debt management plan. Is that generally the case? The thing I'm bothered about with that is creditors pushing me down to too little living expenses - that's the bl**dy problem at the moment. Its fine them not letting certain things but I don't think gym membership (at the £22.99 per month I pay is excessive) Christ they've got to give you some leeway - after all a lot of this is down to dubious lending practices in the first place and both A&L and HSBC have had plenty of interest, fines etc and recently paid my credit card down with borrowed money. Sorry to go on but I've been using payday loans to get by at the moment and I know they're no way to go about things - just feel a bit backed into a corner and not sure whats best.

CCCS_Matthew

ad1jnl wrote: »

Thanks,

I've also been on the CCCS website after reading Martins IVA lowdown. The online debt thingy reckons I'd be better with a debt management plan. Is that generally the case? The thing I'm bothered about with that is creditors pushing me down to too little living expenses - that's the bl**dy problem at the moment. Its fine them not letting certain things but I don't think gym membership (at the £22.99 per month I pay is excessive) Christ they've got to give you some leeway - after all a lot of this is down to dubious lending practices in the first place and both A&L and HSBC have had plenty of interest, fines etc and recently paid my credit card down with borrowed money. Sorry to go on but I've been using payday loans to get by at the moment and I know they're no way to go about things - just feel a bit backed into a corner and not sure whats best.

Hi again.

CCCS offer IVA's and DMP's as solutions. As tend only to be an option for a very small percentage of people as they require quite specific circumstances for them to be viable. Without knowing what your figures are I couldn't say whether an IVA would be suitable, but generally Debt Remedy would suggest it as an option if your figures matched the criteria. You could always give us a call to discuss your budget in more detail to see how far away you are from an IVA if this is something you are keen on.

If you go ahead with the DMP, creditors cannot force you to spend anything. If they disagree with your payments they can reject the plan, but your payment would still be sent to them regardless as you cannot pay what you've not got.

Hope this helps,
Matthew.

ad1jnl

Matthew,

Thanks again.

Wouldn't say I was particularly keen on an IVA as I am a bit suspicous of them and especially with the equity thing. I'm making payments at the moment and am not in arrears but have to use credit to get by at the moment - thats where the payday loans came in as I can't get anything anymore else. Probably with that is its extorionate interest and thereby eats into next months budget. I NEED to sort something out asap as its only going to get worse the further down the line I leave it- but I'm just worried about letters and stuff from creditors and losing my home. Suppose this is why the IVA looks a better option as it stops that.

I've done the Debt Remedy which recommends a DMP - but not totally been through all the figures as yet. Just apprehensive that the creditors will turn round, say no chance we're still charging interest then demand all the money back and I it ends up going to a debt chasing company and lands me more in the c**p. I'm basically looking for something reasonable that means I pay a fair amount back while still being able to live without constantly having to rely on credit - and keeping my home.

My debt is £18k approx. and I have according to Debt Remedy, around £350 disposable income left to pay debts after expenses are taken into account. Also, does the student loan company get included in the DMP - it doesn't in the IVA after speaking to one of the companies yesterday

ad1jnl

Matthew,

I've decided to go with the DMP with CCCS and have submitted my online form etc. Got to say its a relief and just hope things go OK with the creditors. I can repay is a reasonable amount so fingers crossed. Could I possibly ask you a few questions and more advice on things I am unsure about?

Thanks
Jon

CCCS_Matthew

Glad you got it sorted. I'm happy to answer any questions - fire away!

Matthew.

ad1jnl

I been using the personal messaging for quick questions - thanks again

Well not so quick questions really ; )

Jon