IVA Newbie in confusion - please help

Raindrops_3

Hi all,
I am new to this all so please be gentle with me ! My husband and i have struggled with approx £40K debt for the last 2 years on cards which we used to keep our family going whilst watching our small business flounder, he drove as much as possible for an agency and I work as well as look after the children . This April it all became too much and we weren't getting anywhere so we contacted the Debt Advisory Line who listened to us, we filled out all the paperwork and they said yes an Iva would be a good option for us. So here i am in mid August, losing my mind with phonecalls and letters and now collection companies and the IP has just received the paperwork and has phoned me this morning to say it isn't viable as we don't fulfill the criteria, and have I heard of a debt management plan ???

The IP has just gone back to the DAL and I'm awaiting a phonecall back.
What do we do now, I just want to cry but am holding it together as my kids are home, do i expect bailiffs on my door now ?? we are not bad people, just victims of this so called credit crunch.

Charco_2

Why is your IVA not viable? What reasons di the IP give?

I know you feel like you may have made things worse or that by placing your eggs all in the IVA basket that you may have fallen between two stools (i'm trying to think of another cliche to throw in here coz i'm on a roll)
but keep looking, the important thing is to know that you've got a problem and that you want to find a solution, that's the first and hardest step.

Raindrops_3

Hiya, had a chat with the IP company who have passed it back to DAL and the IP said we don't have enough left at the end of the month to offer enough pence in the pound for the creditors to accept.

I am now waiting for the DAL to phone me and see what they say.

The thigs that worry me are (apart from everything !)

We own our own house with not a lot of equity in it, can it be taken away ?

My children being affected by seeing what we are going through

Now that barclaycard have passed us onto a collection agency will they be nasty ?

I have so many more questions and no support, can anyone help ??

Charco_2

Right ok, so the IP doesn't feel that your IVA proposal stands a reasonable chance of being accepted which is fair enough. No point putting you through the process only to be rejected.

We own our own house with not a lot of equity in it, can it be taken away - how much equity? You wont necessarily lose your house, generally if you dont want to you wont have to but it does depend on the solution you are able to put in place. Any equity in your property will need to be addressed at some stage though..

Now that barclaycard have passed us onto a collection agency will they be nasty ? Can they take blood from a stone? Usually if you play ball with your creditors you should be able to come to some sort of an arrangement. Do face up to your finances now though, if you don't, they will only get worse!

As a matter of curiosity,
1. How much equity and how much disposable income would you have been able to put forward?
2. How much of the debts are in
a) your name?
b) your husbands name?
c) joint names?

Raindrops_3

As a matter of curiosity,
1. How much equity and how much disposable income would you have been able to put forward? When worked out disposable income was £300p/m that DAL said was acceptable. We think after the most recent valuation we have approx £40k equity depending on, if we get oiro.
2. How much of the debts are in
a) your name? £15k
b) your husbands name? £27k
c) joint names? £2000

Still awaiting a call from DAL

Charco_2

I'd be stunned if there wasn't a viable solution available to you from all of that!

Firstly, if you have £40k of equity available in your property (and £40k of combined debt) then how would you not have been able to come up with a suitable dividend for your creditors? You're also saying you could afford to make contributions of £18,000 or so over the five year course of a IVA.

That surely can't have been the reason your IP wouldn't propose a an IVA for you!

Raindrops_3

Thankyou Charco, my husband spoke back to the IP this afternoon and pointed out points raised, as a result they are recalling the file from the DAL and will reassess our situation this week. Meanwhile I am still awaiting a call back from DAL.

Charco_2

This puzzled me for a while but i do have one more question.

Are either you or your husband (or both) self employed? Many IPs don't know what they're doing in self employed cases (which is amazing, I know). Whether it's the extra work that goes into doing the accounts beforehand or how to work with the Inland Revenue many IP's baulk at the idea of it even. If you are self employed it could still be worth your while trying to find an Insolvency Practitioners that also specialise in this area.

Even if you're not self employed you could still speak to another IP firm for a second opinion... it would cost you nothing and may set your mind at ease!

Just read your post there. That's good news I hope, keep plugging away.

Raindrops_3

Still not getting anywhere very fast and I had Mercers on the phone last night threatening me with a 'doorstep collection' in 7 days. Can they do this ???

It seems you try to do what you think is best and right by paying everyone a little and then I get thugs like this on the phone giving me sleepless nights and threatening me.

Charco_2

A doorstep collection to collect what?

It may be worth preparing yourself with your rights and duties for what to do if a man does call to the door... or could be a woman! (The days of big burly gorilla-men calling to the door should be gone by now - people still call but it is a more professional business and there are limits to the things they can and cannot do! They're not there to wrestle you!)

Raindrops_3

Mercers are working for barclaycard.
I have spoken to DAL this morning and the IP has taken our case back on, so hopefully there should be light at the end of the tunnel. This has been going on since the end of May, my nerves are shredded.