IVA - Is it an option for me?

Beetlebug1983

Hi,

I am new to this side of the forum!! Usually am hovering on the Debt Free Wannabe side!!

I am currently administrating my own DMP. I did used to be with the CCCS, but then decided to go it alone, and it has been ok.

My current debt is at £26k down from £35k - i have been on a DMP for a while now! But am starting to get hassle from creditors - threatening ccj's and charging orders etc.

I am currently paying £150.00 a month between my creditors. Would this sum be acceptable on an IVA with a debt of £26k or would more be needed. I think if i looked at my budget i could probably get it up to £200 but that would be the max i would be able to afford.

I need advice, this is new to me!

Beetlebug )

Charco_2

The disposable income of £200 may not be enough to propose in an IVA but it can't hurt to have a free chat with someone though! However if a creditor is threatening CCJs then i would imagine it's just that: THREATS!

If you can show to a judge that you are doing your best to address the situation then it is unlikely that (s)he would find anything against you - but you need to weigh up what you have to risk!
Do you have any assets of note? It would be worth considering these!

(It is rather admirable what you are managing to do, well done!)

Beetlebug1983

Charco wrote: »

The disposable income of £200 may not be enough to propose in an IVA but it can't hurt to have a free chat with someone though! However if a creditor is threatening CCJs then i would imagine it's just that: THREATS!

If you can show to a judge that you are doing your best to address the situation then it is unlikely that (s)he would find anything against you - but you need to weigh up what you have to risk!
Do you have any assets of note? It would be worth considering these!

(It is rather admirable what you are managing to do, well done!)

Thank you for your comments!!!

It has been a long slog, but i am taking responsibiilty for my debts and am paying them back. I look back and feel a right div for getting in to so much debt, but that's life. At least I'm trying.

Just out of interest, why would £200 not be enough, what would be a reasonable monthly figure for this amount of debt (ball-park)? I know it's hard to say.

I know i have come quite far, but when you start getting hassled by creditors it just put's you in such a low place. One company in particular is being annoying, DLC. They are "intending to put in a claim to the County Court against me for judgement forthwith and then place a charging order on my proeprty" i do get such nice letters!!

Beetlebug

Charco_2

£200 PROBABLY wouldn't be enough but it may be worth speaking to a professional. An IP would be happy to speak to you about it but the creditors can cause problems because different creditors demand different dividends payments before they'll accept a proposal. (25p in the £ used to be accepted many moons ago but now most creditors demand 30p or 40p in the £ - this varies between creditors and is obviously not set in stone!)

You mention that DLC want to put a charging rder on your house, so does this mean you have a property with equity. In an IVA you would be expected to realease most of this equity which would obviously give a better dividend to your crediotrs and stand a better chance of approval.

Beetlebug1983

Charco wrote: »

£200 PROBABLY wouldn't be enough but it may be worth speaking to a professional. An IP would be happy to speak to you about it but the creditors can cause problems because different creditors demand different dividends payments before they'll accept a proposal. (25p in the £ used to be accepted many moons ago but now most creditors demand 30p or 40p in the £ - this varies between creditors and is obviously not set in stone!)

You mention that DLC want to put a charging rder on your house, so does this mean you have a property with equity. In an IVA you would be expected to realease most of this equity which would obviously give a better dividend to your crediotrs and stand a better chance of approval.

Yes, i do jointly have a property with my partner, but there is currently no equity in it - as it is being renovated. This has been put on hold due to other problems.

Nick700

The only other point to add to Charco's posts is that if £200 is the most you can afford to pay your debts, an IVA is feasible. I know of several IVA firms that would consider helping set up your IVA for you, based on this level of contribution.

I don't like making recommendations, I just tend to offer advice, but contact say 2-3 IP firms that you find on the internet, and see how you get on.

Let me know how you get on.

Nick

Charco_2

WHo are your creditors?

thewad

£200 per month is nearly 50p in the pound on what he owes.

skibadee

I did an IVA through CCCSVA my payments were £196....then through variation reduced to £146....on debts of over £50,000.

Charco_2

No it's not. There are fees to be paid also.

All IPs are qualified professionals and work for a living, whether they belong to a private practice or you're going through a "charity" like CCCS. You're asking a professional to intervene on your behalf.

Moderate fees to research, draft and propose an IVA, see it through the creditors meeting, and supervise it for five years would amount to something in the region of £4,500 - £5,000... these fees come out of the money you can afford to pay, they're not an extra bill on top.

By the time fees are taken into account, the dividend is more like 28p.

That's why it's worth speaking to someone but the contribution could be on the light side and an IVA may not be the best solution available. Dont pin all your hopes on it.

I would stress that it's not IP's who set this arbitrary criteria but the banks - there is in fact nothing in the statutes to suggest that the banks can have such grand sweeping rules, the law says they must weigh up each proposal on it's own merits but hey ho. If the OP indicated who his creditors are then perhaps i would be able to suggest to him which creditors might have a sticking point with him.

I would never discourage anyone (especially someone who is apparent insolvent) from pursuing a solution in insolvency.

Beetlebug1983

Charco wrote: »

WHo are your creditors?

1. HSBC (Passed to Lewis Group)
2. Mint (Still with them)
3. Egg Card (still with egg)
4. Egg Loan (Passed to BLS Collections)
5. Barlcays Credit Card (Still with Barclays)
6. Moorcroft Collections
7. Halifax Loan (Passed to Hillisden/DLC Collections) - Biggest one.
8. Halifax Bank Acc (With Blair Oliver & Scott)
9. Capital One (With Robinson Way & Co)

TOTAL = £26,395.91.

..........BAD I know. I get so angry with myself when I look at these debts. But at the time I was in a really bad situation, which if I lived my life again I would probably have ended up in the same hole!!!

Never mind, lesson learnt for this life, and I am going to be a saver from now on!!