IVA questions - too good to be true?

ponkers

So, after a lot of deliberation, and believing we could work through it ourselves, we have decided to apply for an IVA.

We have contacted ClearDebt, who said that an IVA will suit us (which of course they would....) and have sent us the pack to get all our details.

We gave them our expenditure and our debts over the phone, and they have sent us a rough idea of what they can do for us, but they have completely altered the expenditure.

Some things have gone up slightly - car maintenance from £30 to £50 a month, small things like that, but other things are a lot more - such as one of us has apparently started smoking as they have put £30 in under tobacco.

What I don't understand is that they have changed the figures to be more in our favour?

We have tried to work out how much we will be paying back, and it seems to be about 50-60p in the £?

What happens with the annual review? Do we have to provide them with bank statements, proof of what we have spent, etc?

We were advised to open a new account with Natwest (currently with Halifax) which we are in the process of doing (agreed in principle), but when we have had a look at the creditor list on the payplan list, it shows that Tesco Finance (one of our creditors) are linked to Natwest - will this go against us in any way?

Does anyone have an idea of the track record of Halifax - do they tend to vote for or against the IVAs? Or does it depend on the pence in the pound amount?

No doubt I will have a zillion more questions, but if anyone could help with the ones so far, I would be very grateful!

AdamMerry

I got a IVA about 3 years since now and they did change some of the expenditures round a bit, nothing was added like smoking egs but the things were i was paying more than i was allowed to they consanpated by adding to the things that i was allowed to claim more than what i was paying for like mobile phone bill egs just to balance things out a bit, and i suppose from there point of view to encorige me to take the IVA.

pammie39

hi there
ok regarding halifax..... i had big problems with them (iva=2 years in sept),
halifax said that they was not included in the vote for my iva, they kept charging me and sending debt collector letters.
i went to the ombusman. straight away the letters stopped, a year and a half later, halifax offered me £50 (a good will gesture) and said that my account is now written off!!!!!!!!
BUT, they now say we were mistaken and even though my account is at £0.00,they still wont their £4000. so back to the ombusman again!!!!!!!!!!

good luck with your iva and halifax!
i found the iva is the best thing for my husband and myself, we are saving near £500 a month on payments to cards and loans, we only pay about 32p to the £. (so we pay £350 a month between us instead off £900 est)


good luck!

onesugarplease

an iva although VERY helpful when you're struggling, is not as easy a way out as people think.
i'm in my final year now and my payments have gone from £345 per month in the 1st year to over £900 a month now.
every year you will have an invasive review, you will have to supply bank statements etc to prove income / expenditure.
i feel like i have this massive weight around my neck ~ ye, i know its all my fault~ but my wife and i have our lives on hold until this is finished.
sometimes i feel it would have been better to go bankrupt.

a2062cad

ponkers, I am not sure I can help you as my IVA was a F & F 118k debt agreed at £50k. However, my IP was great, she was able to guide me through the process, recommend changes to the monthly expenses and then suggest the best plan.

It seems to me that perhaps you should consult several IP's and perhaps find a local one with real personal attention.

ponkers

Just a little update...

We went ahead with the IVA and our meeting of creditors was on Monday.

It was accepted, at a 34p dividend. Hubby's was 76% majority in favour, mine was 100% in favour.

In case it helps anyone, HBOS, RBS, Home Retail Group (argos card), all voted in favour. Coop bank, Black Horse and MBNA voted against. Debehnams credit card (used to be ge capital, not sure if that has changed?) didn't vote, and neither did virgin money (even though they are, or were, part of MBNA who did vote).

I am incredibley relieved, and feel like I can look forward to life again - there is an end in sight now, which there wasn't before.

Now starts the hard work!

Charco_2

Good luck Ponkers, an IVA is not an easy way out but it's certainly easier than being ground down by your creditors demands every month. No-one goes out there to deliberately accrue massively unmanagable debts but it's good to know there are life vests available when you need them.

Good luck!

coops1061

hi there can anyone give me some advice i had a iva before i met my now new wife and have recently been informed that the company who were handling my iva have changed and the new company now want a expentiture form filled in and i was wondering will my wife be effected if i put her income on the form she does not earn a great deal and we both pay 50% of all household bills but i dont want her credit raiting to be effected, as the debt was mine before we got together.

Charco_2

No, your new wife will not be affected.

The only mention of her on your forms will be to clarify the total income and expenditure of your household. Then from the total disposable income available they will take YOUR share out and this is what you will be expected to continue to contribute to your creditors.

Your wife should NOT be expected to contribute to your IVA in these circumstances!

serenity34_2

coops1061 wrote: »

but i dont want her credit raiting to be effected, as the debt was mine before we got together.

As long as you don't have a 'financial connection' then her credit rating shouldn't be affected at all. I'm assuming you have no joint bank accounts or credit agreements? Remember that your IVA shows on your file for 6 years from the date it started so you are better not to get anything in joint names with your wife until this has dropped off completely