IVA help

moon-shine

I really need advise on IVA's. I am currently on a DMP and have been for the last 2 years. Still receiving high interest and charges and debt seems to be increasing! Lloyds are not happy and phone calls and letters have increased (stress)

I am thinking about an IVA as i feel this is the only way forward. I have no knowledge and not sure if this is the right thing to do.

Any recommendations who i should get more advise from. My DMP is with payplan at the moment but not sure i want to arrange an IVA through them.

Any advice wlecome.

Thanks

Nargleblast

You can still speak with Payplan about IVAs without committing to anything. Also CCCS have an associate company that do them. Citizens advice might also give you some help. Remember nothing is set in stone and final until you sign the agreement, so don't be afraid to ask around. Another regular on here, Charco, works in finance so will be able to explain things in layman's terms for you.

churchrat

hi
do you have a home that you wish to protect (on a mortgage) or a job which means you cannot go BR?

Charco_2

Why wouldn't you just speak to Payplan? Presumably they already have most of the required documantation? And as Nargle says, there'd be no commitment with them if you didn't like what you were hearing.

However, that said, it does beg the question: WHAT HAVE THEY BEEN DOING WITH YOUR DMP FOR TWO YEARS IF YOU'RE BEING CHARGED INTEREST STILL?
The whole point is that they organise for you to get out of debt and they'll take on the hassle of dealing with your more... persistent creditors!

Can see why you might not want to commit with them...

Well, there ARE other companies!

If you have any specific questions, the people on here are great. If you do speak to a company (or are considering a company), it's worth asking on here to find out if someone else has an experience.

The worst can happen really is that you're told an IVA does not suit your situation and so you can continue with your DMP (or move to a company who'll earn their fee by stopping charges and interest! SHOCKING!)

moon-shine

Hi

I don't own my home no. I think it's pride more than anything that i don't wanna consider BR as i am aware it's published in the papers.

I have contacted payplan about an IVA but am just waiting for them to come back to me. I am not sure i fully trust them though as i said the sitution just seems to be getting worse. I also still have to contact my creditors when they contact me as they never seem to receive paperwork!

I have spoken to Bainst and Ernst who were really helpful, but then towards the end of the call got quite pushy. I am not sure what is the best way to go IVA or BR or who to seek advise from.

If i take the IVA route is it 5 years and debt free or do i have to make a large lump payment at the end?

lou756

I'm new to all this, but I think I'm right in saying that BR is advertised in only the London journal now and not in your local newspaper or any in areas where you used to live.... I don't know if that makes you feel at all better about it as an option.

My understanding is that when your IVA proposal is acepted then it is 60 payments (5 years) and you're done and debt free. If you own your own property you might be expected to use it to re mortgage and raise some money in the 4th year to pay into the IVA, and if you have any other assets (very expensive car etc) you might be expected to sell these at the beginning and pay in the proceeds. If this is a massive over simplification, please someone correct me!

Why don't you talk to some of the other not for profit organisations: National Debtline were a good starting point for me. CCCS have a debt remedy tool online that you can go through with all your details that might help you clarify your thoughts?

Hope you get on OK.

Deep_In_Debt

From what I understand, if you don't own a property you may be expected to extend your IVA by a further year as you won't have any equity to release to finish it in year 5.

Charco_2

That's fairly accurate Lou - simpler the better!

There are other reasons to avoid bankruptcy but the general feeling on here is that whichever one is cheaper is the better option.

The best thing for anyone to do is find out their options from a number of different sources ad make their own decision... dont let a pushy company bully you into anything - it's YOU who is going to have to live with your decision so don't make a decision until you're comfortable.

moon-shine

Hi

Thanks for the advise.

I think i want to opt with an IVA i spoke to payplan as that's who my DMP is with and they say i don't qualify as my debt will be clear in 6 years. I don't understand how they can say this when all my creditors are still charging interest. I have paid over £6000 on my DMP and my debt should have come down to just over £18500 but it's not it's still at £22000.

Has anyone any suggestions of who to discuss an IVA with???

Thanks :eek:

Charco_2

Deep in Debt, you've got your wires crossed. If you dont own a property then the IVA simply finishes once you've made your 60 payments. The IP will issues you with your ceretificate and that's that!

If you DO have a property then the IP will need to make sure that any equity is addressed. This can be done by re-mortgaging (but hopefully not as you will get a stinking interest rate which will cost more in the long run), or by introducing funds from a third party (i.e. sister/brother/cousin/aunt/grandad offers to help you out!), selling the property and introducing most of the profit (but you'll be able to keep some relocation costs for yourself generally).

But the best option by far is if there is only a little bit of equity (something around £5k) and in this instance you'll be allowed to extend your IVA by 12 months to make contibutions to address the equity before your IVA is then completed!

MoonShine - there are plenty of companies you can talk to just be sure not to pay anybody any money until they put a solution in place. Companies often take a fee to refer you to their sister comany or whatever but since the reality is they get paid for their work on and in your IVA so they shouldn't really be taking your money off you up front... your already IN debt, they should be helping you out!