New to any of this

scirocco

A quick hello to everyone and thank-you in advance.

I have found myself floundering for some time now. A renovation project gone wrong, first builder dying a month into the work and subsequent builders ripping me off for my remaining capital (long, pathetic story).

I had savings and ploughed those into the project to keep it afloat. Eventually I was able to move in, but I was heavily mortgaged and my wife had been made redundant at work.

I put my house on the market as I knew it was unafforadble, but that was the same time as the housing market crash. I used credit cards to finish the house and live, hoping and praying that it would be sold. We dropped the asking price several times in keeping with market conditions, but it still didn't sell.

I used all my savings to keep up all payments to creditors and this month defaulted for the very first time. I owe £40k in total on unsecured debts.

My wife still doesn't work and I have worked out roughly £70 of surplus to service a DMP. PP will not put me on a formal DMP as they want me to have over £100 to play with. I offered to make savings, but still they said to wait until my circumstances get better. This confuses me.

I went ahead with the self help package, but some creditors won't deal with me unless I am in a formal agreement.

So I went to CCCS, who are advising a IVA based on a recalculated £185 surplus.

I am frightened by some of the stories. Can I be made to sell my house after 60 months? Am I 1 step away from bankruptcy?

What are the implications and advantages of IVA over formal DMP?

I know this question has been asked several times before so a pointer to the advise would be good.

Thanks again for reading.

althas

Hi Scirocco (loved those cars :-) )

I think you need to TALK to an IP directly to discuss all the options. Generally in an IVA, if you have property, they look at releasing a set amount of the equity in it in (say) year 5. If there is none, then the IVA goes on for 1 more year to cover that. But each IVA is individual and a good IP tailors it to YOU and not to what they want

SO, what I suggest is contacting a few IPs and talk the situation over, see what they advise. Then sit down and compare what they have said, build in the general impression you got from them personally (remember you will be dealing for 5 to 6 years with them, so you need to be comfortable). Have a visit to www.iva.com They have a huge list of IP firms and reviews from the people who use them, so you will get a good idea of their quality and performance. Then make a decision as to the course of action you want to go for

The only thing I will say, if, when you contact the IP's initially, they try to push your hand and talk about paying up front fees etc, then hang up and go somewhere else. There are (like all industries) the good, the bad and the ugly

But good luck on your choice

scirocco

Thanks for the reply, you have given me a good starting point. I have a telephone interview tomorrow with an IP. I didn't contact them but they contacted me through CCCS. Is this normal and above board?

I have a few things to discuss before opting for an IVA, although I believe I haven't really got much choice.

I pay pension contributions through work. Can this be stopped by my creditors in order to release more capital to pay into my IVA?

I have a corporate credit card, necessary for my work and expenses. Will Ihave to declare it and loose it with the result that I could loose my job.

I am really nervous that I am choosing the right option in an IVA.

althas

I can understand your trepidation on this. But IVA is not the only option, and a good IP will go through ALL the available options for you and explain them all and how each will affect you. If they do not, then again I would say they are only interested in getting your money and will not have the good afterservice

I never went through CCCS for my IVA, so I do not know the ins and outs of the referals from them to an IP, someone else could answer that I am sure

I guess the pension could be looked at by the creditors for that, but that is something the IP could advise on better. I just know that mine was not affected. I have a contributory one through work and it comes off my gross pay. My IVA was calculated on my NET take home pay so the pension was not affected

The corporate credit card. Is it YOURS or is it issued TO you through work (i.e they are the card holder and responsible for the bills). If it the former then it WILL have to go in the IVA as all debts need to be declaired. If it is the latter I would guess not, as you are not liable for the debt. But again, and sorry to keep saying this, ask the IP

The best thing to do is talk fully and openly with the IP. Be truthful and don't keep anything back or hidden. It would really only be to your detriment in the long run. And remember if they push, ask for money to do your proposal, do not answer your questions fully then try someone else. There are many good IPs out there. If you want the name of mine, I would be happy to tell you. Just pm me

Good Luck with the interview

scirocco

Thank you again althas. The interview was less tortuous than I had imagined. Thank-you for the offer of the name of your IP, I would be silly to ignore a recommendation. If you could PM me I'll hold it in abeyance.

The interview was to cover the circumstances and agree a surplus and I have another, more in depth interview next Monday with a 'senior collegue'. I have a load of paperwork to gather, but thankfully I'm quite organised (who would think it ? LOL)so I can put my hand on the stuff pretty quick.

This is the initial steps before I finally discuss the fine details of my proposal and I assume I'll be able to discuss my trepidation and queries with the more senior collegue.

Thank you again. Its been said many times before but I find myself in the company of, although unfortunate, like minded and genuine people.

althas

Not a problem Scirocco, I am glad it went smoother for you than you thought, it is such a weight off when it does

Good luck on whatever you decide to do

debtinfo

hi, just a thought, but do you have equity in the property. If you dont have you discussed all your options including bankruptcy with anybody

scirocco

Hi debtinfo, probably got about £50k of equity left in the property. I haven't discussed bankruptcy. I suppose in my ignorance, the word BR shares the....out of me. I work for a well known insurance company, and although I'm an engineer and not regulated, I don't think my job would survive a bankruptcy. I don't even know how I stand with a IVA, but certainly no worse if I don't tell anyone.

debtinfo

If you have equity, then IVA is probably best way to go, but do make sure that all options are explained to you before you commit to anything. You dont want to be in the position a couple of years down the line saying, well i never knew that

scirocco

Thank you for your swift reply debtinfo, although I have an interview on Monday, I will contact a couple of reputable and recommeded IPs. I still feel like I am holding back from an abyss and I know I must get over that hesitancy if I am to get on with repairing the damage.