IVA Question

wookie999

Hi All

Can anyone please help. I contacted cccs had interveiw budget and was advised an iva.
Now the Problem.
Rang today to arrange interview with IP,spoke to the ladt on the telephone and she said we may not quailfy because of joint debts etc.We have lived together for 10yrs not married 2 kids.

My partner and i have debts unsecured of 28500 pound
i owe 2600 cc,od 1500
my partner owes cc4700,od 1500,980sc,450sc,350sc
jointly we have together 12000 loan,4800 cc.

Now im very worried when we first talked to an advisor she didnt mention about the different debts we thought it would be included in one IVA,can anyone please advise,plus this week is the first week with ever missed payments what shall i do when the phone start.

Thanks all any help would be great

Paul

hunnybee

Hi Paul,

I have to say I don't know too much about joint debts, my husband and I are in an IVA but we each had our own debts so that wasn't an issue for us. Is your partner going for an IVA too? If not is it possible to have the debt transferred to just one of you? I don't know if that's an option??

I would strongly recommend that you write to your creditors to tell them you are having financial difficulties and offer a token payment, even if it's only £1. Any payment is better than no payment, you can also then request for them to keep all correspondance in writing.

RE: the telephone calls, I have to say while we were waiting for our IVA to go through, we had lots of calls and we screened all of them. If you have caller display it makes it easier to identify which calls are ok to answer, I answered no calls from creditors and if they left me a message, I responded via letter and asked them to keep all communication in writing. For me that was the best thing because I couldn't cope with the 'you need to pay now' approach on top of the rest of the stress!

Sorry I can't be more help, good luck with what ever you choose to do

Charco_2

Joint debts CAN be included in an IVA.

Are you both looking at entering into an IVA or just one of you? (You can do a joint IVA).

A problem would arise if only one of you entered into the IVA as the other partner would be left responsible for the remainder of the joint debts. *** you will not be able to convince a creditor to transfer the debts to one partner only as that would effectively double their risk!***

wookie999

Charco,hunnybee thankyou for the information,i have only just ran out of money this week and i have an excellent payment record with my creditors.My partner has an interview for promotion today and if lucky enough, i would be able to pay my commitments,my parents have offered to clear an overdraft, i will speak and explain all this to the IP on Monday,so with a little more time i might be ok. But i feel the credit card companies will not help or give us some breathing space,as i would like to pay my debt back,im only in this situation because my partner`s redundancy we used cards to live,wrong i know but 2 kids, So if you could advise is it harder to IVA as a couple,because even right now i would love avoid all this,but if her promotion fails we will not meet our unsecured debt.We would both entering together on this.
Thankyou for your time

Paul

Charco_2

I wouldn't be in a hurry to use your parents money to clear off a debt until you KNOW it is going to solve your situation - No point throwing good money at it if it's only going to waste.

Do discuss it all with IP on Monday but understand that they will also advise that you cant treat one debt as a preference over the others.

I hope everything works out and you can avoid the IVA but at least you know there's a safety net if it all gets too much.

Good luck to your partner for the interview and goodluck to you both how ever it all works out for the future. Lets us know how it goes with the CCCS IP too

wookie999

Charco

Thankyou very much for the advice.

Paul

wookie999

IVA discussion with IP.

Today i had a telephone conversion with an IP over debt problems,so thought id post to tell you what happened (may help others).

IVA more than likely to fail or creditors would not accept our high mortgage costs currently 1080.00 for a balance of 183000 fixed at 5.4 for another 2 years...... saying that we had over strecthed ourselves,went through a few options dmp, but best solution was to sell house and clear some debt this way and then try for an iva then.

I feel we did overstretch ourselves but living in London i have an old 2 bedroom house in an ok area, you can struggle to find a 2 bed flat where i live for the price, so a bit of a victim of the 3 and a half time salary and when a partner suffers redundancy,theres no chance of survival.

What am i going to do well im going to work all hours god send so is my partner and we are going to try to get through this for the sake of the kiddies.

Thankyou for all the advice i have recieved from you

Paul

Charco_2

Hmmmm!

That's kind of strange unless it's not been explained by you properly!

Your mortgage payment is what it is and should not affect the viability of your proposal!

ricardido

Good luck paul, im sure you will come out ok in the end!

wookie999

One of things i have found on this stressful situation is companies vicious attitude towards us just trying to negotiate some grace after years of good credit,none of them offered help in anyway shape or form.After 20 years with Natwest even they didnt care,so my point is you get into trouble they all make the matter worse immediatley lay extra charges,rude aggresive customer advisors in collection dept, even when you look at alot of debt solution most of them are going to cost you in the long run more money!!!,ive only missed three payments this month so i hate to think what it will be in 2 months time. This has been a harsh lesson in life for me.I can only try and improve my situation,this forum has offered good support and i lot of people i know are in similar situations.i wish you all well.

Choo_Choo_4

So your mortgage is £1080pm for your mortgage ... I know that there might be guidelines for the amount you should be paying on a mortgage (i.e. % of total household income spent on mortgage) but you can't change this ... as you've said it's fixed for 2 years so this must be paid ...

You've said that your partner had an interview and either way is actively seeking employment so this household income will increase when job found in turn increasing the viability of IVA proposal presumably?

If I were you I would seek a 2nd opinion .. ask another IP - it doesn't cost anything to find out your options ...make sure you don't pay anything for advice - there are a lot of reputable firms out who really want to help and do not have upfront fees.

Also, you could think about incubating your debts in a DMP until such times as your partner would gain employment and if you think that an IVA would then be the better option you could switch to this then ...