Creditors Meeting Looming

headstuckinsand

Hi everyone,

Just thought I'd update you on my situation. Went with Payplan for IVA.
Unsecured debt approx 55k, proposed payment over 5 years £360pm.
So roughly 29% being paid back as opposed to sweet fa in bankruptcy.

Creditors meeting is set for April 12th so keep your fingers crossed.

Cheers

scouselad1974

Hi

The very best of luck, I hope your IVA is approved.
Do you mind me asking how you found the inital set up of the IVA and what it involved, as I am also considering an IVA as an alternative to my DMP.

headstuckinsand

To be honest it's been fairly straight forward. It's taken about 8 weeks in total to get to this point.
I rang payplan who took my details and arranged a call back.
The advisor called back when they said they would.
an income & expense check with me and ran through all my options, DMP, IVA or Bankruptcy. I opted for the IVA as a DMP would have taken 13+ years to pay off.
They then request all your information, for the last 3 months, e.g. payslips, statements, V5, mortgage details, insurance details, etc and a brief statement about how you've found yourself in this position. (Mine was more like war & peace by the time I'd done!)

Owning up to my problem and preparing to go into the IVA has involved a complete mindset change though. You might find some of the things I've done to change my ways useful.
I set-up a cashminder account with Co-op and got my wages changed to pay into the new account. I changed all my essential direct debits to come out at the beginning of the month from the new account so that after they'd been paid I know exactly how much I've got left for the month.
I'm keeping a spending diary, jotting down exactly what I spend ever day, and on what.
At the end of the month, what ever money is left I'm transferring to a savings account in my Brothers name so he can look after it. This removes the temptation to be able to spend it and ensures that there is some money available for the one-off bills later in the year such as car insurance, mot, etc.

Hope this helps. Good luck with your decision.

Oh, and the biggest piece of advice I can give is, talk to your family. I've told people about my situation and they've all been very supportive and understanding. You wouldn't believe how much of a weight that lifts!

scouselad1974

Thanks for been so open about your experience, I hope it all works out well and after 5 years you can start a fresh.

I to am doing similar to you whilst in my DMP, it has taught me to value money and that I can live without credit and don't need to keep spend spend spend on stuff that I don't need.

Good Luck

Max_1066

'Scouselad' I hope you can work out an IVA rather than a DMP. I was persuaded to enter into a DMP by CCCS however with hindsight (or better knowledge) I should have gone for an IVA earlier. It would have saved me £4k !!

I agree with the above post ... my family and friends have been great so do talk about it with yours. My brother has funded the one off IVA and provided a car for me to use. I now know the value of money .... and cash in particular.

Good luck.

scouselad1974

Hi

I spoke with CCCS yesterday in the hope of applying for an IVA but they have told me that I am not suitable at the moment and to continue with my DMP for the time being.

althas

Hi Scouselad

There are more people than CCCS to talk to about an IVA. They can not say you can not have one, only your creditors can do that. When I got an apprasal off them they said I should do a DMP. But I did not, and went to the IVA path and was accepted. I do not regret my decission at all

Have a trip over to www.iva.com and get the names of a few IP's to talk to (that is the important bit, shop around a little). Avoid ANYONE who asks for a fee before they will do anything, and generally anyone who act as a "referer". Have a chat through with them, they are the professionals in the matter and will have a better idea in their experience if the iva would stand a chance

Good luck

icecube2009

headstuckinsand wrote: »

To be honest it's been fairly straight forward. It's taken about 8 weeks in total to get to this point.
I rang payplan who took my details and arranged a call back.
The advisor called back when they said they would.
an income & expense check with me and ran through all my options, DMP, IVA or Bankruptcy. I opted for the IVA as a DMP would have taken 13+ years to pay off.
They then request all your information, for the last 3 months, e.g. payslips, statements, V5, mortgage details, insurance details, etc and a brief statement about how you've found yourself in this position. (Mine was more like war & peace by the time I'd done!)

Owning up to my problem and preparing to go into the IVA has involved a complete mindset change though. You might find some of the things I've done to change my ways useful.
I set-up a cashminder account with Co-op and got my wages changed to pay into the new account. I changed all my essential direct debits to come out at the beginning of the month from the new account so that after they'd been paid I know exactly how much I've got left for the month.
I'm keeping a spending diary, jotting down exactly what I spend ever day, and on what.
At the end of the month, what ever money is left I'm transferring to a savings account in my Brothers name so he can look after it. This removes the temptation to be able to spend it and ensures that there is some money available for the one-off bills later in the year such as car insurance, mot, etc.

Hope this helps. Good luck with your decision.

Oh, and the biggest piece of advice I can give is, talk to your family. I've told people about my situation and they've all been very supportive and understanding. You wouldn't believe how much of a weight that lifts!

If you dont mind me asking what happened re your mortgage with the IVA? I was under the impression that you cant go on an iva with a mortgage, I know a few people on IVA's and all told me to do the same (48k debt, my DMP will take at least 16 years :eek:) but they all rent. I was under the impression that I could loose my house on an IVA, and I cant do that to my kids, that has always been my one big worry!!

Max_1066

Icecube an IVA is def still an option if you have a mortgage. Whether its the best option needs careful consideration and expert advice however.

The complication comes in the final year when the creditors will require you to release equity in your property. If paying a DMP for more than 5 years I would seriously look at the other options. Its def worth having a chat with a few IVA companies asap to see what they recommend.

Just out of interest who is running your DMP ?

icecube2009

I am with the CCCS, its gonna take at least 16 years to be debt free if I continue at the rate I am now

how would you release equity in your property?

Charco_2

Sixteen years! Another life sentence handed down by the CCCS!

It's kind of funny (not ha-ha funny - funny quirky/strange) that you would be of the impression that an IVA is not for you because you have a mortgage, when most people on here would tell you that unless you have a mortgage then an IVA is not for you - which is not really true either!

The IVA wont deal with your Mortgage, it is only for UNSECURED DEBTS... but it will allow you to protect your asset.

There are a few way to look at releasing equity i your property in an IVA and they each depend on how much equity you have to release:
1. Remortgage
2. Secured Loan
3. Payment from third party (wife or brother or mother or cousin or best pal...)
4. A one year extension to your IVA from five years to six
5. Sell your home

They are all farily self explanatory but the first thing really is to consider how much equity you would have. Firstly take the estimated value of your home and multiply it by ".85" to find 85% of the value of your home. Then subtract the amount of your current mortgage. (Half it if the home also belongs to your wife/husband/partner). THIS is the amount of equity you have for the purposes of your IVA. (No mortgage lender will lend you more than 85% of the value of your home so you cannot be expected to release more than 85% of the value of your home... your IVA will also stipulate that you will not be forced to sell your home - you can decide to sell it yourself if you want but then you might have to bring in more than the 85%. Also if you're going to sell, then why would you do an IVA?)

Your IVA will probably be extended for an extra 12 payments if your equity is less than £5k. Also if you CANNOT get a remortgage or secured loan then the IP/creditors may ask for an extension.