What next if iva not accepted????

stressedtothelimit

Heres my story so far. DH and I have £46k in unsecured debts. we have a house worth £185k with a mortgage of £133k.

We have been dealing with the cccs since DECEMBER and have been advised to go down the IVA route. They have had all paperwork from us and 10 weeks into dealing with us have turned round and suggested we now do a full and final settlement by releasing equity. We have no probs doing this what so ever!

so they referred us to another company, who have searched but come back to us advising they are not able to find a co who will release enough equity to do full and final settlement! so they are passing us back to the cccs!!!

I am stressed, angry and disappointed that everything is taking so long to sort out. The cccs basically said the IVA won't go through because of the equity, but no one will remortgage us to release it!!!

any suggestions?????

I was thinking about asking cccs to set up DMP to keep creditors off my back for a while, then selling house privatly and down sizing. Once I have the money I could approach the creditors myself for F&F settlement but not sure if thats an option.

Bottom line is we don't want to move but look like we are going to have no choice!!

i am close to tears typing this now!!:eek:

Faye449

I can't advise as I'm in a mess myself and in no position to do so BUT thought I'd just say you aren't alone in your stress and drama and being close to tears, I was up all night flapping about my situation so you are in good company x

stressedtothelimit

Does anyone have any suggestions??

LAMMESH703

We had a large amount of debts about £58,000 we were considering going down the IVA route but decided against it as we did not want to remortgage as this can cost more in the long run, we approached a company called PAYPLAN who work with all the banks card companys etc... they sort out all your finances and work out an amount that you can afford each and every month, there is no fees involved, so all the money you pay to them they pay to your creditiors. We have been with them for 3 years and it works brilliant. You can log on online whenever you want to see how much you have paid off your debts. but to be honest it best not to log on often as you dont see your debt go down as fast. We were worried sick with our debts, but we are still in our house and now stress free.

Tixy

Hi Stressed
Sorry to her you are having a bad time. I think your problem is not uncommon at the moment, no one will lend to you to release the equity and an IVA won't be accepted due to the equity you have.

I think that setting up a DMP sounds like your only realistic option at the moment, and should you decide to down size and release money then your creditors may well be open to F&Fs by then (as you will have defaulted on your debts and some may have been sold on.

The only thing you might need to think about is that if you downsize and then try to get a new mortgage that could be difficult due to the defaults you would have incurred.

Talk to CCCS again about the possibility of doing a DMP (at least for now). If you are not happy with CCCS there are other places you can do free DMPs with (including Payplan as Lammesh mentions).

LAMMESH703

Forgot to mention, we only pay £358 a month after all our household bills, eg. mortgage, council tax, water rates, food, clothing, school dinners, mobile phone, fuel for cars, car maintenance (tax, insurance etc), prescriptions. They ask you to be realistic about how much you actually spend within reason. They take your outgoings from your income and the surplus amount is what is paid to your debtors. We even pay some companies £1.89 Give them a ring they are really helpful. They are funded by all the big Guys, Barclays, Natwest, Abbey, Bank of Scotland, etc.. That way the banks and card companies etc get paid off in the long run. And yes once again, it is FREE no monthly fees like the other debt management companies.
Hope this helps.

Tixy

Lammesh

There are other free DMP organisations around, including charities such as CCCS that Stressed is already talking to. Glad you have been happy with Payplan though.

stressedtothelimit

I just find that the cccs are not really helping at the moment - they are taking longer and longer to do stuff, the iva proposal still hasn't been drafted and its coming up for 4 months since we first spoke to them!!!!

stressedtothelimit

UPDATED:
So last week we rcvd out IVA proposal to sign - it had errors on it so had to be returned. Then the revised one they sent out also had errors on it - so had to be returns. Then the final copy came yesterday....you guessed it - more errors.

I rang up FUMING at them for being so useless and they emailed me out the revisions that I needed and TODAY I have now signed all paperwork and returned it to them.

Will let you know when MOC is!!

stressedtothelimit

Just to let you know MOC is booked for 30/04 - will let you know what the outcome is.

The proposal says that the creditors will get back 69p to the pound if its accepted, but will get nothing if force bankrupcy on us - the cccs have said that they think it will be accepted but can't guarentee it!

fingers crossed

Tixy

Fingers crossed for you.