Decision to Make

alecpr

Good post Sparkle!

Seems that the logical course of action would be to speak to a charity such as CCCS or Payplan first of all, weigh up your options with them as you get unbiased advise with no financial insentive to push you in any direction.

Once you have decided on the route you wish to take, decide on the company you would prefer to deal with.

I assume Sparkle was deducting the IVA fees from amount of you are paying.

sparkle84

NickToye wrote:

How do you know this? (this isn't me giving a strong reaction, I'm just curious as to where you have your information)

Also where has this 25p in the £1 come from? If it was me being a little unclear earlier than I apologies. The figure I have in front of me is closer to 55p in the £1. Would that be likely to be accepted. If this has caused me to mislead you, then again i'm sorry.

Why would a IVA be not good for me if I have no home to protect. That doesn't really make sense to me.

I'll have to check that if my IVA fails I will become bankcrupt.

Chances of me getting a mortgage are fine apparantly. I may have to pay .5% over the base rate. I even have a contact in the mortgage industry who deals specifically with mortgages for those who are coming to the end of or are in IVA.

So let me ask DMP? Would it be able to clear £25k worth of debt in 2/3 years?

Hi because I looked into to getting one a year or so ago but decided against it all the information you need is here http://www.insolvencyhelpline.co.uk

the 25p is rougly calculated as follows
Your owe 28,000
230 x 60 months = 13,800
Less IP Fee = £6,000 approx
= 7,800 to you creditors
25% of 28,000 = 7,000
so you are offer you creditors approx 25p in the £
which they would get if you went bankrupt but you do have suplus income so the OR would make you pay some of this to you creditors for 3 years!!!

You will be made bankrupt if you IVA fails that it why most people wont touch them - check all you want that is a fact and debtmatters should have made this very clear to you

You lose you home in bankrupcy which is why some homowers go for an IVA as your home is protected

I work for a leading high street back you will struggle getting a mortgage from them and will have to use a subprime lender and you would need to budget for 3% over base rate as even high street bank don't lend .5% over base rate for their most credit worthy customers, however if you are happy to do this then fine

If you pay a DMP over the next 2/3 years you income may have improved by then and you could offer full and final settlements to your creditors - this is the route I am taking.

Hope this helps

NickToye

@Sparkle - Well it kind of helps, truth of the matter is I don't know you or anyone else on here, and the nature of a forum is anyone can say anything.

This is not an attack on you, you may be telling the truth. I have just spoken to my case worker at Uk Insolvency Helpline and he has totally countered many of your claims. So ask yourself who would you believe? Someone who has an amiguous name, that i've never spoken to in person or someone who has told me the facts from the horses mouth.

However, you have stated that if your IVA fails, meaning you fail to make a payment ontime, you can go bankcrupt. I understand that - initially I thought you meant that if your application failed. Not to worry,

Anyway, thanks for the advice but I feel I need to mingle with the real people now. No offence intended. But I would be a fool to take advice of a computer Avatar.

fatbelly

Hi Nick - enjoying this thread but I understand the sense of frustration here.

On a previous thread I sent you a National Debtline factsheet on IVAs and you thanked me for it. (Ahh the good old days of the thanks button!)

Did you read it? The answer appears to be no.

Here are the pros and cons, from the factsheet:

What are the advantages of an IVA?

You may well be running a small business which would be difficult to keep going if you were bankrupt.
You may be a profession where you could lose your job if you go bankrupt such as accountancy/police/armed forces.
You may have access to a large lump sum and want a formal arrangement with your creditors to accept the lump sum and write off the rest of the debts.
You may have a very high monthly available income to make payments.
You will not automatically lose your house or other assets which can be kept out of the IVA with the agreement of the IP and your creditors, although the creditors will usually want most of the equity in your house. See the section on "Disadvantages of an IVA".
You will not have the same restrictions on you as you would if you went bankrupt, e.g. you can still use your bank account without saying you have an IVA.


What are the disadvantages of an IVA?

If you do not keep to the terms of the IVA then the IP or your creditors can make you bankrupt.
If creditors do not accept the IVA proposal you are back to square one. You cannot make another IVA proposal for 12 months.
If you paid an up-front fee for your IVA and it is not accepted, then you will have lost the fee and be in a worse position than when you started.
If you own your house the IP and creditors may make you agree to sell your house as part of the IVA. It is standard for IVA agreements to include a clause that you will get your house valued after a set number of years with a view to giving most of the value or "equity" in your house to the creditors.
You may be able to pay instalments for an extra year to cover the amount of equity in your home. However it could mean selling your house if you cannot raise the money. Your options may include you or a partner taking out a new loan and even securing it on your house. This may be difficult as your credit rating may not be good enough to get a loan through a reputable lender and you would be putting your house at risk.
There is a risk that the IVA is agreed on the basis of monthly payments that you cannot afford long term. You must be very careful that the payments are set at a realistic amount in the first place.
If your circumstances change and you can no longer afford the payments your IVA may end if the IP cannot persuade the creditors to accept a new agreement.

There are other factsheets on DMPs and on bankruptcy. You need to read them. I'm not saying an IVA would be a disaster nor that it wouldn't work. But you don't seem to have any of the factors that would push you towards an IVA. So the better choice would be between a DMP and bankruptcy, and Payplan can advise on which is best and would also recommend an IVA if that was the best choice.

jesster_2

I have to say, I have no real view of PayPlan as I've never dealt with them. But I do have to say that my OH (who's recently declared bankrupt) spoke to them and CCCS and National Debtline, and he wasn't impressed with the initial contact he had with Payplan.

I know they do do great things for a lot of people on here, so they must be a great organisation.

All I'm saying, Nick, is have you tried CCCS before committing to a commercial company, whose initial approach is bound to be over-helpful because it's sales patter rather than impartial advice?

The company certainly can't guarantee you the IVA will be accepted, and each credit expects a decent percentage of the debt to be repayed. The worry is that if anything changes and you can't stick to it, your creditors can force you to declare bankrupt.

If, however, you're on a DMP and you get a couple of years in, and then your business takes off or you otherwise improve your income, you can offer reduced full and final settlements to your creditors, which has a more positive impact on your credit score.

Particularly what bothered me is that my OH was also advised that an IVA on your credit report is almost equally as damaging as bankruptcy when you're applying for a mortgage, certainly more so than a DMP.

Ultimately it's obviously your choice, it's just a matter of taking all the available advice rather than trying to make a decision as quick as possible.

sparkle84

NickToye wrote:

@Sparkle - Well it kind of helps, truth of the matter is I don't know you or anyone else on here, and the nature of a forum is anyone can say anything.

This is not an attack on you, you may be telling the truth. I have just spoken to my case worker at Uk Insolvency Helpline and he has totally countered many of your claims. So ask yourself who would you believe? Someone who has an amiguous name, that i've never spoken to in person or someone who has told me the facts from the horses mouth.

However, you have stated that if your IVA fails, meaning you fail to make a payment ontime, you can go bankcrupt. I understand that - initially I thought you meant that if your application failed. Not to worry,

Anyway, thanks for the advice but I feel I need to mingle with the real people now. No offence intended. But I would be a fool to take advice of a computer Avatar.

Yes that fine I would be interested to know (just for my own information ) what claims he said are wrong because as I have said is how much you are offering (correct) that you will be made bankrupt if it fails, (true) Insolvency register (true), very low offer (true) only you creditors decide how much they will accept. so I have spent quite a bit of time trying to help you I would appreciate you setting me straight as as far as I am concerned everything I stated is true as I tried to go through this process myself

alecpr

NickToye wrote:

I would be a fool to take advice of a computer Avatar.

Strange response from the creator of thread; who began by asking for advice from a load of computer avatars ;-)

A frustrating thread indeed.

sparkle84

alecpr wrote:

Strange response from the creator of thread; who began by asking for advice from a load of computer avatars ;-)

A frustrating thread indeed.

I agree I spent a lot of time giving advice everything I have said is true he doesnt want to believe it - i won't bother in future

Chortle_2

Nick, this is the fourth thread of yours I have read and every one has made me feel like :wall:

What has frustrated me about your threads is that you do not seem to research what you're talking about signing up for, and when you do, you go to dubious sources (the debtmatters bloke, who is obviously going to tell you what you want to hear, or at least word it in such a way as it sounds like what you want to hear - he is probably on commission !!!!!!).

IVAs are not that different to bankruptcy, except they protect assets, so they're great if you own your own home for example, as you'd normally lose that through bankruptcy. But you're not in that position, so I don't see how an IVA will benefit you tbh.

You WILL struggle like crazy to get a mortgage following an IVA, and if you do manage to get one, you will be paying through the nose for it. I suspect you'd end up paying more in mortgage interest long term than you'll have saved in not repaying all of your debt.

Should your IVA not be accepted, you can't simply 'try again' - you can only apply ONCE every 12 months. If it does fail, you'll have to go for a DMP, or go bankrupt.

If I were you, I would do some serious research, from wholly impartial sources, before I tied myself in to something which could potentially wreck my credit rating, and future prospects, and might not be right for the situation anyway.

But then, its wholly up to you. I get the distinct impression that you'll go with DebtMatters no matter what any of us say anyway

alecpr

Sparkle,

I for one appreciated your post, as I'm sure many others did, still worth posting useful information even if the intended recipient doesn't appreciate it... there will be others who do.

Now whatever did happen to that thankyou button :-)