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suziq5001

Hi, I've posted on here before but it's been a while so I hope I'm doing this in the right place! I'ts all a bit complicated ... here goes:

I'm in a DMP with Payplan and have been for a few years now, since getting into really bad debt which I am slowly sorting out. Recently they have rung me and are trying to persuade me to change from the DMP to an IVA. They claim that my monthly payments won't increase and I can see the sense in doing this in one way as - if what they say is true - I will pay this debt off much more quickly, they say it will be paid off in four years. I have two concerns though - the main one is that it sounds like with an IVA there is some part of it at the end that involves releasing equity from my house. I have a mortgage of 87,000 but also another debt secured on the house with a charging order for £26,000 as the result of a CCJ four years ago; the value of the house is only approx £115,000 so I'm not really sure where they think the equity will come from.

The second concern is that I don't really want an IVA on my credit file for another four years - all the defaults that form part of the DMP will be over six years old soon and I thought that meant they won't show up on my credit file anymore. But Payplan say that any of my creditors can, at any time, issue another default notice which then becomes more current than the original one on my file. They say that this happens 'quite often' - is that true as far as you know? If it is then fair enough but I feel a bit like they are trying to put pressure on me to change to a IVA and I wonder if there could be anything in it for them?

So I guess, in a nutshell, what I am asking is (a) what are the implications for the security of my house with an IVA and (b) what are the implications for my credit file in relation to an IVA as opposed to the DMP?

The reason I'm concerned about my credit file is that I'm a single mum and my daughter is now 10. At the moment we live in a pretty rough part of town which hasn't been a problem so far but I'm worried about a couple of years down the line, when she starts maybe going to the shops etc. on her own and would really like thinking about moving to somewhere a little bit nicer at that point. The way things stand on my file at the moment there's no possibility that I'd get a new mortgage but I thought that in a couple of years, when the various defaults no longer show up, maybe there'd be a chance. That's why what Payplan said about the defaults has concerned me so much.

OK, well I hope this all makes sense! Thanks in advance for any advice ...

Mrs_Impatient

Hi, first post on here and hope someone can offer some advice please.

In October 2009 my husband and I took out a joint IVA as my husbands business was failing and creditors were beginning to get anxious and threatening bankruptcy on my husband which would have meant we would lose the house.

The IVA company handling then was Blair Endersby and last year with no warning or explanation this company was taken over by Grant Thornton. We are still in the process of agreeing payments with them and trying to change a few bits and bobs.

My main question is that initially when we were talking about an IVA Blair Endersby (BE) said that I would have to be included in the IVA because some of the debts (not related to the business) were in joint names. My debt oversall is probably about 5,000 and that is including the joint ones with my husbands. My husbands is more like 30k, so what I would like to do is pull out of the IVA, take my single debts and the joint debts and pay them under the hat of a debt management scheme and keep my husbands debts in the IVA. I have briefly spoken to Grant Thornton who have said an account manager will have to call me back to discuss, but they don't think this is possible. Now I have been told there is no such things as a joint IVA.

What do you think the possibility of this might be.

My other main concern is that at the end of the IVA the house will have to be remortgaged (which is doubtful because of credit score) or if there is no equity in the property we are being told then that will be it, we have no equity therefore won't be able to pay anymore and thats it no more IVA no more debt. Is that correct?

Many thanks.

Mrs_Impatient

cluelesskerry wrote: »

Thankyou would that be the same for bright house then i am in arreas with them also for £160 4 weeks worth. but they dont listen i told them i will have the money on the 19th jan as thats when we get paid next and told them after this payments will return to weekly as before which they will but they do not seem to give up they are calling at the house around 7pm ish which i told them is un-sociable as this is when my children go to bed they call day and night sometimes as late as 9.30pm! are they allowed? also the manager of the store called round while i was out the other night and discussed the whole account with my partner who has no responsibility to this debt are they allowed to this? i had a go at them anyway telling them if they discussed it again with my partner i would take them to court, (dont know if i can do this i was just sick of them , i told them when i would pay so thought i would give him some of the mouth he was giving me back) im not afraid of the debt collectors i like to stand up for myself, my partner is back at work now and ive told them when first wage comes in they will be first to get it. The manager at bright house is such a (cant say it) when he rang the other night i asked him for head office number to complain about him ringing late at night and his response was ' o i thought you might say that try answering your phone and we wont have to ring late at night' i couldnt believe what i was hearing i told him i answered the phone told them when i would pay so therefore have no need to answer the phone to them again until the date i said i was paying! sorry for the rant but they have really annoyed me!

anyway back to my question is this normal practice to behave like this and are they allowed?

Hi, I had the same problem with Asda Credit Card (as it was then) we had a guy come round our house to set up an agreement and because I wasn't in (my husband was and told him when I would be back) he walked around the field out the back of house and stood looking through our back windows to watch when I came in, was there about an hour in the cold (ha ha) because I believe he didn't believe I wasn't in! Anyway, enterered into an agreement with him for every Friday at 6pm, couldn't pay one day, so everyday he called back even though I said he would have to wait till pay day, told him date etc etc. This he agreed to, but still came round "just on the off chance", got so fed up complained to the head office about him, calls and visits stopped straight away and set up standing order direct with company, no more hassle. You sound like me, not scared of these people, so get onto head office complain about them and say you want to set up a standing order. Hope you get on OK.

System

Redman1977 wrote: »

Ok got myself into some difficulties and could do with some help.

I have 2 credit cards
1/ RBS Visa with £4700
2/ Capital One with £900

I also owe my tax bill at the end of the month which is £1600.

Im self employed and have work coming in, but i need any advice possible on managing this debt before it becomes too great to handle, have tried to get a 0% balance transfer card but was declined i think because of a low credit rating. I also have my own property which is mortgaged.

Any advice will be appreciated.

Hi Redman1977 and welcome to the forum.

As you are self employed and we have a specialist team that deals with this I’d recommend that you give us a call on our free Helpline on 0800 138 1111. We’re open Monday to Friday 8am - 8pm.

If you phone us it may be possible to refer you directly to a counsellor for immediate advice. Alternatively, we will arrange for an appointment to be booked at a time convenient for you.

We wouldn’t normally recommend taking out any further lending as this often makes the situation worse further down the line.

I hope this helps.

Kind regards,

Mat

System

MummySaint wrote: »

Hi there

We have credit maxed out but have an excellent credit rating on experian, I wondered if I would be able to apply for a new 0% credit card deal to tranfer some of the debt if our total available debt has been reached even though the transferred debt card would be stopped and really isnt any new debt. I not sure I've explained this very well but wondered if somebody understands what I'm trying to say whether it's possible to be accepted by a new 0% card Thanks

Hi MummySaint and welcome to the forum.

We don’t usually give advice regards 0% deals and you would need to independently check the market and the terms and conditions of any deals you look at.

If you are struggling with your payments you might want to come back to us for some more advice. Or try our online debt counselling tool Debt Remedy (http://www.cccs.co.uk/ref/drcu) to help you find a solution to your debt problem quickly.

I hope this helps.

Kind regards,

Mat

StepChange_Pavan

PG82 wrote: »

Good morning, wonder if someone can give me advice regarding my current situation ;

I currently have approximately £ 30,000.00 of unsecured debt in various forms - ie. credit cards, loans, overdraft etc.

I have previously been in a DMP (Payplan) - but recently decided to 'go alone' and deal with creditors directly, which has largely been successful.

However, I keep thinking the best solution would be to get an additional overall loan to pay off my existing debt, and then just manage one substantial monthly payment which I would not / will not default on (some of existing debts have been defaulted in the past and therefore incurred interest charges).

Can someone give me advice / point me in the direction of a loan company that would be sympathetic to these circumstances - and offer a loan of this amounut ??

Thanks in advance.

Hi PG82 and thanks for your post.

We don’t usually recommend consolidation loans as they can make your situation worse in the long term. You may find this article useful which explains why and what you should consider if you do look for a loan provider: http://moneyaware.co.uk/2011/04/to-debt-consolidate-or-not-to-debt-consolidate/.

Kind regards,
Pavan

StepChange_Pavan

suziq5001 wrote: »

Hi, I've posted on here before but it's been a while so I hope I'm doing this in the right place! I'ts all a bit complicated ... here goes:

I'm in a DMP with Payplan and have been for a few years now, since getting into really bad debt which I am slowly sorting out. Recently they have rung me and are trying to persuade me to change from the DMP to an IVA. They claim that my monthly payments won't increase and I can see the sense in doing this in one way as - if what they say is true - I will pay this debt off much more quickly, they say it will be paid off in four years. I have two concerns though - the main one is that it sounds like with an IVA there is some part of it at the end that involves releasing equity from my house. I have a mortgage of 87,000 but also another debt secured on the house with a charging order for £26,000 as the result of a CCJ four years ago; the value of the house is only approx £115,000 so I'm not really sure where they think the equity will come from.

The second concern is that I don't really want an IVA on my credit file for another four years - all the defaults that form part of the DMP will be over six years old soon and I thought that meant they won't show up on my credit file anymore. But Payplan say that any of my creditors can, at any time, issue another default notice which then becomes more current than the original one on my file. They say that this happens 'quite often' - is that true as far as you know? If it is then fair enough but I feel a bit like they are trying to put pressure on me to change to a IVA and I wonder if there could be anything in it for them?

So I guess, in a nutshell, what I am asking is (a) what are the implications for the security of my house with an IVA and (b) what are the implications for my credit file in relation to an IVA as opposed to the DMP?

The reason I'm concerned about my credit file is that I'm a single mum and my daughter is now 10. At the moment we live in a pretty rough part of town which hasn't been a problem so far but I'm worried about a couple of years down the line, when she starts maybe going to the shops etc. on her own and would really like thinking about moving to somewhere a little bit nicer at that point. The way things stand on my file at the moment there's no possibility that I'd get a new mortgage but I thought that in a couple of years, when the various defaults no longer show up, maybe there'd be a chance. That's why what Payplan said about the defaults has concerned me so much.

OK, well I hope this all makes sense! Thanks in advance for any advice ...

Hi suziq5001 and thanks for your post.

Firstly, we can’t say whether one would be better than the other without looking at your situation in more detail. There are many differences between the two and IVAs vary from one individual to the next so it would depend on what was written in the terms of your agreement. You might find this article useful as it goes through the differences of the two options: http://moneyaware.co.uk/2011/07/12-differences-between-an-iva-and-a-dmp/

Your house would be secure in an IVA (as long as your repayments to the mortgage and any secured debts are maintained), and if there is no equity there would be no need to remortgage.

With regards to your credit file, creditors should only ever issue you with one default for any particular debt, although it isn’t uncommon for them to do it more than once. Either way, it will take time for you to rebuild your credit rating no matter which solution you decide.

I completely understand that it must be confusing and you may find it useful to get some independent advice to see what solution is recommended for you. You could try our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu) to get a second opinion and there’s obviously no obligation to transfer to us – it might just give you piece of mind that you’re going for the right solution for you.

I hope this helps.

Kind regards,
Pavan

DFW2012

Hi,

I have gone through my debt issues with CCCS and had a call booked today to speak to an advisor regarding a possible IVA, I have been given the option of that or a DMP, but when the advisor called I didn’t realize that they then make another appointment for an IVA advisor to call you back to discuss. Anyway, the first appointment I
can have is Monday 23rd January.

I just wondered if you could answer a couple of questions until then please?


From reading the information that was originally sent it contained details about IVA’s and a DMP:

The IVA would just be in my name

Why would an IVA affect my job?
What happens to my credit file at the end of 5 years?


I have been trying to open a new bank account and they did ask if I had any IVA etc. and I said no as technically I don’t – is that ok?


Will an IVA affect my husband in anyway?



It mentioned a joint debt and that creditors will expect the other person to make up the difference - we do have a joint loan but it has been included in full on my statement of affairs


Also mentioned was equity by remortgaging 6 months prior to the end of the IVA - I don't really understand what that means.



Thank you for any advice you can give

dlongmore

Hello,

I hope someone can give me some advice.
I have 2 ccj's on my credit report dating back to late 2008. I am now able to pay both of these off, except a company which is dealing with one of them can not find it on their system. Is there anything I can do to rectify this?

Thanks
Dave

StepChange_Pavan

Mrs_Impatient wrote: »

Hi, first post on here and hope someone can offer some advice please.

In October 2009 my husband and I took out a joint IVA as my husbands business was failing and creditors were beginning to get anxious and threatening bankruptcy on my husband which would have meant we would lose the house.

The IVA company handling then was Blair Endersby and last year with no warning or explanation this company was taken over by Grant Thornton. We are still in the process of agreeing payments with them and trying to change a few bits and bobs.

My main question is that initially when we were talking about an IVA Blair Endersby (BE) said that I would have to be included in the IVA because some of the debts (not related to the business) were in joint names. My debt oversall is probably about 5,000 and that is including the joint ones with my husbands. My husbands is more like 30k, so what I would like to do is pull out of the IVA, take my single debts and the joint debts and pay them under the hat of a debt management scheme and keep my husbands debts in the IVA. I have briefly spoken to Grant Thornton who have said an account manager will have to call me back to discuss, but they don't think this is possible. Now I have been told there is no such things as a joint IVA.

What do you think the possibility of this might be.

My other main concern is that at the end of the IVA the house will have to be remortgaged (which is doubtful because of credit score) or if there is no equity in the property we are being told then that will be it, we have no equity therefore won't be able to pay anymore and thats it no more IVA no more debt. Is that correct?

Many thanks.

Hi Mrs Impatient and thanks for your post.

There is such a thing as a joint and interlocking IVA but we can’t advise you in more detail. An IVA is a legally binding solution so you can only discuss your situation with your provider.

It’s really important that you speak to the account manager and put your questions to them. If you’re not happy with their response you can ask to speak to the Insolvency Practitioner directly, and they should explain the circumstances fully.

With regards to the equity, you’re right in saying that if there is no equity available you won’t be in a position to release any. Again, you can speak to your IP for clarification on this.

If you’re not satisfied with the way that your case has been dealt with, you may find this leaflet useful as it explains the complaints procedure: http://www.bis.gov.uk/assets/bispartners/insolvency/docs/publication-pdfs/ipcomplaint.pdf.

I hope this helps.

Kind regards,
Pavan