Feel sick with worry

Webbigail

Hi, just after some advice/shoulder to cry on.

After discussions with CCCS looks like the only way forward is IVA. We have been through all our finances with them and they have sent through a pack with everything detailed. Just waiting for our telephone appointment next week with IVA. people.

We originally had £265 a month to offer but after going through everything a final time I think £230 is more a realistic figure. Is this too little to offer?? Debts total £67K:eek: which scares me every time I think of it.

We have set up a new basic bank ready to put wages in this month. CCCS have told us to offer our creditors some money whilst IVA gets started but we wont have a cheque book. Will it be ok to send the creditiors letters and make on line payments? Also how much do we need to give them?

ALso what happens if the IVA is not accepted??? I am totally petrified of the whole thing

Charco_2

Webbigail wrote: »

Hi, just after some advice/shoulder to cry on.

After discussions with CCCS looks like the only way forward is IVA. We have been through all our finances with them and they have sent through a pack with everything detailed. Just waiting for our telephone appointment next week with IVA. people. - I've said it before and i'll say it again probably, if you'd a toothache you'd go to a dentist: you've a debt problem so you go to a debt professional - You've done the right thing! If an IVA is the correct course of action now then that's what you should look at. There's no other obvious way out of this amount of debt is there?

We originally had £265 a month to offer but after going through everything a final time I think £230 is more a realistic figure. Is this too little to offer?? Debts total £67K:eek: which scares me every time I think of it. - £230 does seem a rather small amount to be offering to deal with this amount of debt but the IPs at CCCS (or anywhere else) wouldn't suggest it unless it was viable. IPs have a duty to declare that they genuinely believe this to be the best solution for all parties concerned (you AND your creditors).

We have set up a new basic bank ready to put wages in this month. CCCS have told us to offer our creditors some money whilst IVA gets started but we wont have a cheque book. Will it be ok to send the creditiors letters and make on line payments? Also how much do we need to give them? - £5 per creditors seems to be a norm but really it's up to you. You could divide £230 by the number of creditors and send them that but i wouldn't bother really! Also depends how long it's going to be before your IVA is in place - you could always send them nothing!

ALso what happens if the IVA is not accepted??? I am totally petrified of the whole thing - Your IP has to be sure that your IVA has a reasonable chance of success before proposing it to your creditors. If it is genuinely the best solution for both you and your creditors and you are genuinely putting your best foot forward by offering as much as you can then you shouldn't have too much to worry about but obviously there are no guarantees.

If the IVA fails and there is no way forward then you can still consider a DMP or Bankruptcy - what reasons do you currently have that would preclude bankruptcy? Assets or a Job with responsibility or just preference?

Webbigail

I dont think DMP is an option although this would be our prefered option. CCCS said it would take 21 years on a DMP. We dont want to go down the Bankruptcy route, would just pefer to avoid at all costs.

Charco_2

I work in insolvency (just so you know. Dont want someone to later say i wasn't honest or that my post were biased - i try not to be!)

I obviously lean towards insolvency based solutions if you're insolvent! I genuinely believe in the solution but you have to make sure it's right for you!

I understand not wanting to go down Bankruptcy, but according to the other forum on here it's not so bad if it's all you've got... i dont think the solutions are meant to be enticing or easy though!

As for DMPs, they have their place like for people struggling with debt but not insolvent, or for people having a temporary blip in their finances but it's amazing how a blip can turn into a disater (and in no small part due to how punitive the banks are with charges).

Good luck!