cccs iva

p1w1

hi,

basically my girlfriend has been dealing with the cccs regarding an iva and just recieved her proposal. However i feel there are a few things on there that doesn't seem right.
1, her current debts are around £26k credit cards, loans the usual things. She also has a joint morgage with a friend that they took out a fews years ago and tied in with this morgage her friend also took out a loan of £17k that she pays herself and has nothing to do with my girlfriend and is paid seperate to the morgage. Now the cccs have said that my girlfriend has to include this £17k as if her friend was to jump ship or whatever then my girlfriend is responsible, if anything bad was to happen to her friend then thats all covered through life insurance etc. Does my girlfriend have to include this?? her proposal is basically debt= £43k including this £17k, payment is £435 per month for 5 years and any extra money she gets in between should be included plus her car is being returned in aug and they are saying the £86 she pays a month at the moment for it should then also be added making it £521 per month so basically the maths are like this £521x60 =31,260 which is just over £5k then what she actually owes is the first place, if she does the iva it seems she has to take on her friends debt too and pay it off for her. I want to see somebody independent as i just don't trust these people and as the cccs comes across as free they are actually charging £6k for there efforts :eek: is it best to see a finacial advisor or is there some other kind of organisation you can see the other option she has that we can see is to sell her flat of which she will make nothing from it and then settle the original £26k of debt she has by making her own offers to the creditors without having to do this iva or do the iva and only for the £26 she owes herself,
long winded i know but hope you understand what i'm getting at, any advice would be very greatful

paul

p1w1

hi charco,

thanks for the reply. you are right the £17k is an unsecured loan in both names and not attached to the property although it is somehow tied up in with the morgage (interest rates and length of the repayments). So they way i see it is she is better selling the property and instantly "legally" removing £17k worth of debt as she will not make any money from the property and renting a property will save a couple of hundered a month compared to her current morgage, this will also help her to be able for her to break away from her friend and not tie herself up with dealings as her friend will also have to sign a form stating that the property will not be sold for at least the 5 years of the iva (as stated by the cccs) and we can start a fresh ourselves. Can you recommened who she should get a 2nd opinion from just a normal independent financial adviser??

thanks again

paul

Charco_2

Northern Rock by any chance?

It would be a good idea to get the two separated quickly before your girlfriends IVA show up on her friends's credit rating... Well, not exactly but by being linked on a debt/account with your girlfriend there could be some cross over... even if the friend maintains all the payments and never misses a beat.

The form the friend signs wouldn't be to prohibit the sale of the property during the five years, it would be so that the CCCS can be informed if they try to sell the propperty. The IP at the CCCS would have an interest in any proceeds from the sale on behalf of your girlfriend and the creditors. They can sell the property so long as your girlfriend brings in her share of the profit (minus various costs including re-location costs if she has to then move - probably not very much then)

peachyprice

Charco wrote: »

She is paying back an awful lot of money - but if she can afford it then she should be paying it!

Except for the extra £17k her friend has benefitted from, surely.

If the whole of the £17k is being included, and the majority paid for, by op's gf's IPA surely the friend needs to stop making payments and should be paying OP's girlfriend instead, otherwise that loan is going to get paid twice the amount it's due, from op's gf and again fron her friend?

p1w1

no i believe it was with alliance and leicester, i think its best that the 2 try and come to some arrangement with selling the property.

thanks for your time

paul

p1w1

peachyprice wrote: »

Except for the extra £17k her friend has benefitted from, surely.

If the whole of the £17k is being included, and the majority paid for, by op's gf's IPA surely the friend needs to stop making payments and should be paying OP's girlfriend instead, otherwise that loan is going to get paid twice the amount it's due, from op's gf and again fron her friend?

thats what i was thinking and this is a point ive told my girlfriend to raise with them what actually happens to that side of the loan as they have not mentioned anything about her friend paying it they have just said my gf has to include it with her debt which to me looks like she is basically paying her friends debt for her?

debtinfo

The problem is that that the IVA must include all unsecured debts that the bankrupt is legally liable for. so even if she hasnt spent the money it is her debt legally and so must be bound by the IVA.

Charco, as you know IVA's better than I, if they sell the property and pay the £17K loan then surely that is a preference payment

p1w1

if she is to sell it then she would not enter into an iva untill it has been sold and that loan payed of by her friend or it gets put soley into her name which is another option she is going to look into having the loan transfered soley into her name and seperate from the morgage..also if they sell the property her friend can still keep the loan on as though its tied in with the morgage rates and time period etc it is a seperate loan to the morgage..

Charco_2

see this is why I was trying to clarify if it was joint and connected with the mortgage (which is an NR special). A&L dont have a track record for that so it could be different. DEBTINFO, if the girlfriend paid the £17k debt it could be preferential but there's nothing to stop the GF's friend paying her debts... If the debt was included in the IVA, the friend would be liable for the remainder anyway! I would hold off on signing anything, because this sounds confused and so do you. (i have a fair bit more to say, so i'll be back on tomorrow)

p1w1

yes it is all a bit confusing to me really but you are helping thanks..there will be no signing of anything at the moment thats for sure..

thanks
paul