Can anyone help me? DMP/IVA/BR

PollyandMartin

Please help me as I am unsure where to turn next. Although we have been to CAB and have looked at options of DMP, IVA and BR and have a telehone appt with Payplan on Sat eve. I have so many questions and worries.

I know we are the only ones to blame but have been juggling to ensure all minimum payments have been made on time and because of this and other stupidity have huge debts. I am so humiliated and angry with myself.

My main worries are: nasty phone calls and letters - although home visits scare me the most. Will everyone know if we have to go down BR route?

Our mortgage is 340 000 and house worth about 375 000. Have early repayment penalties with mortgage of about 15 000. Really want to keep our home if possible. Never been late with mortgage and until this month credit card repayments.

I have SOA

Income:
OH 2555
Me 1556
Child Benefit 135
Total: 4246

Expenditure
Mortgage: 2365
Utilities: 213
Council Tax: 176
TV Licence:12
Life Ins: 33
Home ins: 33
Water: 50
Travel: 220
Petrol: 80
Car Ins: 30
MOT/Tax: 20
Children activities: 50
Food: 450
Haircuts: 30
Glasses: 22.50
BT: 25
Mobiles: 30
Prescription: 13
School Lunches/trips: 30
Total: 3949

Surplus: 364

Our outstanding debts between us are:

Barclayloan: 14100
Eggloan: 7000
Egg cards: 500
Egg card: 5000
Barclaycard: 8700
Barclaycard: 2000
MBNA: 14700
MBNA: 10000
Halifax: 10500
Marks and Spencer: 9700
Overdrafts: 8500


I know I should wait until Payplan interview but would really appreciate soem advice.

I know I have been stupid but please go easy on me as feel very vulnerable. Nobody can beat me up more than myself.

thecableguy12

PollyandMartin wrote: »

Please help me as I am unsure where to turn next. Although we have been to CAB and have looked at options of DMP, IVA and BR and have a telehone appt with Payplan on Sat eve. I have so many questions and worries.

I know we are the only ones to blame but have been juggling to ensure all minimum payments have been made on time and because of this and other stupidity have huge debts. I am so humiliated and angry with myself.

My main worries are: nasty phone calls and letters - although home visits scare me the most. Will everyone know if we have to go down BR route?

Our mortgage is 340 000 and house worth about 375 000. Have early repayment penalties with mortgage of about 15 000. Really want to keep our home if possible. Never been late with mortgage and until this month credit card repayments.

I have SOA

Income:
OH 2555
Me 1556
Child Benefit 135
Total: 4246

Expenditure
Mortgage: 2365
Utilities: 213
Council Tax: 176
TV Licence:12
Life Ins: 33
Home ins: 33
Water: 50
Travel: 220
Petrol: 80
Car Ins: 30
MOT/Tax: 20
Children activities: 50
Food: 450
Haircuts: 30
Glasses: 22.50
BT: 25
Mobiles: 30
Prescription: 13
School Lunches/trips: 30
Total: 3949

Surplus: 364

Our outstanding debts between us are:

Barclayloan: 14100
Eggloan: 7000
Egg cards: 500
Egg card: 5000
Barclaycard: 8700
Barclaycard: 2000
MBNA: 14700
MBNA: 10000
Halifax: 10500
Marks and Spencer: 9700
Overdrafts: 8500


I know I should wait until Payplan interview but would really appreciate soem advice.

I know I have been stupid but please go easy on me as feel very vulnerable. Nobody can beat me up more than myself.

I would suggest an iva if you wanna keep ya house becuase you may loose if you go br, a dmp plan would take longer to pay off like 20 years, i would suggest an iva. because the debt would be cleared quicker and cheaper, they are harder to get accepted these days and mbna will most certainly reject although they can be outvoted

PollyandMartin

Is it very strict with 75% of the debt, as £24k is with MBNA. What happens if they reject but IVA still goes through, do they still keep contacting us?

Thanks for your help.

thecableguy12

PollyandMartin wrote: »

Is it very strict with 75% of the debt, as £24k is with MBNA. What happens if they reject but IVA still goes through, do they still keep contacting us?

Thanks for your help.

no if they reject and they have been outvoted they havve to accept they were outvoted and will be part of the iva, so you would be laughing at them and they wont keep contacting you

thecableguy12

PollyandMartin wrote: »

Please help me as I am unsure where to turn next. Although we have been to CAB and have looked at options of DMP, IVA and BR and have a telehone appt with Payplan on Sat eve. I have so many questions and worries.

I know we are the only ones to blame but have been juggling to ensure all minimum payments have been made on time and because of this and other stupidity have huge debts. I am so humiliated and angry with myself.

My main worries are: nasty phone calls and letters - although home visits scare me the most. Will everyone know if we have to go down BR route?

Our mortgage is 340 000 and house worth about 375 000. Have early repayment penalties with mortgage of about 15 000. Really want to keep our home if possible. Never been late with mortgage and until this month credit card repayments.

I have SOA

Income:
OH 2555
Me 1556
Child Benefit 135
Total: 4246

Expenditure
Mortgage: 2365
Utilities: 213
Council Tax: 176
TV Licence:12
Life Ins: 33
Home ins: 33
Water: 50
Travel: 220
Petrol: 80
Car Ins: 30
MOT/Tax: 20
Children activities: 50
Food: 450
Haircuts: 30
Glasses: 22.50
BT: 25
Mobiles: 30
Prescription: 13
School Lunches/trips: 30
Total: 3949

Surplus: 364

Our outstanding debts between us are:

Barclayloan: 14100
Eggloan: 7000
Egg cards: 500
Egg card: 5000
Barclaycard: 8700
Barclaycard: 2000
MBNA: 14700
MBNA: 10000
Halifax: 10500
Marks and Spencer: 9700
Overdrafts: 8500


I know I should wait until Payplan interview but would really appreciate soem advice.

I know I have been stupid but please go easy on me as feel very vulnerable. Nobody can beat me up more than myself.

things that may affect your chances of getting accepted high mortgage payment your mortgage is 55% of your monthly income, your would need to loose glasses school lunch trips, is your mortgage capital repayment or interest only if capital try switching to interest only to lower mortgage payment to bring the percentage down

PollyandMartin

Will Payplan advise us on this before they propose IVA to creditors. Will they have a good idea if it is accepted?

Nargleblast

If Payplan draw up a IVA proposal then it is in their interest to ensure it is accepted as they wouldn't get any money from it otherwise! (I am assuming they have a sister company that does IVAs rather like CCCS does, so although Payplan's services are free to you, the IVA company will get their fees from the payments going in). The company usually draws up a comparison chart for the creditors, showing what they would be likely to get back under bankruptcy (probably near to nothing after the charges have come out) versus what they would probably get with an IVA. With an IVA they could get 50% or so of the debt back within 5 years (with mine it was something like 53% return). Now, if you were a loan company which would you go for - getting half of it back almost certainly within 5 years or posiibly getting most of it back within 20 or 30 years under a DMP - assuming circumstances don't change? Bearing in mind that these companies sell on bad debts for about 15p in the pound, the IVA looks the more attractive option. Plus it is a legally binding agreement done through the County Court, so penalties could be dire if you welshed on it. Payplan will look at all your figures and if they think it is feasible and more than likely to be accepted they will advise you to go for it. Of course you know any equity in your home would have to be looked at four years down the line, but who knows what will happen to the housing market between now and then? You might not have any equity then, or banks might not want to lend to you, in which case they will give you a couple of options to consider re terminating the IVA, so cross that bridge when it comes.

Whatever your worries, I can tell you that some people find DMPs work for them, some IVAs (I am in one) and some say that bankruptcy was the best thing they ever did. You have to do what you have to do to sort your debt situation out and make whichever method work for you. And don't take stroppy letters and calls from creditors personally, it is their job to chase you. At least once an IVA is accepted you can pass on all correspondence to the IVA company to deal with.

PollyandMartin

Thanks for this.

With a suggestion from the cableguy, I contacted my mortgage company and if I go onto interest only mortgage, I can afford to make all the minimum payments - just. But obviously this will take me years to clear. However I am quite prepared for this - it is our debt afterall. Of course I will not be reducing the debt on my mortgage but to be honest this payment will be the same as renting - in the hope that over about 10 years the house price will go up and at least will have built up a bit of equity.

Would others suggest going down this route as opposed to IVA? I would like a fresh start but am so scared it will be very unpleasant and my friends and family will find out. Either way I will have very little to live on whether it be 6 years on IVA or 30 years just trying to repay the debt them selves.

Sorry for my panicking

I do not want any more credit, apart from the mortgage, ever as I am so fed up with living like this.

Just a few more questions, although I know they have been answered in various forms:

If on an IVA:

I have not been late with any CC or loan payments and hope that if IVA approved would be set up in 2 months - is this realistic?

With the above in mind, is it likely that the IVA will be set up before creditors start getting nasty (ie home visits)?

Can creditors contact your employer?

Has anyone any info on prepay credit cards?

PollyandMartin

Thanks Cableguy
On your suggestion have sent this to lady we saw at CAB but you may be able to help............

I have as you suggested contacted the mortgage company and we can go on to an interest only mortgage and this saves us a huge amount of money - we could just about afford everything.

We have an interview with Payplan on Sat eve - if we talk all through these suggestions:-

• Interest only mortgage and carry on with minimum repayments
• Interest only mortgage and IVA - more like to be accepted as nearly £1000 to pay creditors but not reducing our mortgage debt
• Mortgage the same but IVA - not sure they will accept as mortgage over 50% of income and 25% with MBNA.

Will Payplan give us the best option for us or do you think they will push us down IVA route?

thecableguy12

PollyandMartin wrote: »

Thanks Cableguy
On your suggestion have sent this to lady we saw at CAB but you may be able to help............

I have as you suggested contacted the mortgage company and we can go on to an interest only mortgage and this saves us a huge amount of money - we could just about afford everything.

We have an interview with Payplan on Sat eve - if we talk all through these suggestions:-

• Interest only mortgage and carry on with minimum repayments
• Interest only mortgage and IVA - more like to be accepted as nearly £1000 to pay creditors but not reducing our mortgage debt
• Mortgage the same but IVA - not sure they will accept as mortgage over 50% of income and 25% with MBNA.

Will Payplan give us the best option for us or do you think they will push us down IVA route?

yes talk to them they will give you the best honest advice or you could expand other areas of expenditure to lower the payment to the iva and be on interest only

PollyandMartin

Would you think it is worth going down the route of IVA even with the unpleasantness and hassle we will face? Am happy to release equity from house (we are on fixed rate with penalties of £17k until March 2011) at least we will be debt free. Or struggle on and slowly pay it off. Is the hassle worth it in your opinion.

Can we juggle the figures around with Payplan or should we do this before we speak to them?

Sorry to keep perstering you.