Iva help needed

nogoodwithdosh

Hello we are in debt big time.My wife has a gambling problem.We have got debts with 3 companies.
I work but my other half lost their job and I suppose that put us on this downward spiral.
A couple of months ago our old car's engine blew up and I needed a car for work.Foolishly I bought a car on a credit card as it was the only way that I could get one for work as I work 60 miles away.
We havn't fallen behind with any payments yet but I know that either next month or the one after we will not be able to make the massive payments needed to cover our debts.
I keep looking at the bank account and each pay day it keeps getting worse
Do I wait until I fall behind or do I do something now? I am scared to try for an IVA incase they take my car and I need it for work.
My main debts are with hsbc and halifax and the car is on a barcley card.
I try and get in front by doing lots of work and overtime but find my wife has gambled ithe extra away
I really need advise
Should I do itnow or later?

RuthnJasper

OK sweetie. Stop panicking. You have come to the right place for advice and you are going to be OK.

IVA is not EXACTLY the same as bankruptcy. I am in my third year of an IVA and they allow for car expenses. They didn't take my car.

IVAs are not right for everyone - but, for me, it was the best thing I ever did.

Have a look at the Citizens' Advice Bureau page on IVAs - they guided me to the company who now look after my IVA. Here's the link: http://www.adviceguide.org.uk/index/your_money/money_management_index_ew/help_with_debt_index_ew/individual_voluntary_arrangements_ivas.htm

I have to go to bed now - and I'm sure more folk will be along with help, support, and advice shortly - but I will check back tomorrow to make sure you are OK.

It is a brave thing to face up to the fact that you have a problem and take steps to make things better.

You should be proud of yourself.

Good luck to you.
x

althas

I will echo Ruth's comments above. It was one of the hardest things I ever did, but the sence of relief..............

You do not have to wait before you look at an IVA, I was not behind in any of my payments, just a perpetual living on credit (getting bigger each month etc) and the felling of standing on the edge. I know exactly what you are feeling

My advice (as I give to everyone) is have a visit over to www.iva.com I found my IP from there

They have a wealth of information about IVA's and IVA firms. What you need to do is have a look through the names of some of the firms and Insolvancy Practitioners (IP's). They are all reviewed by the people that matter, their clients. So you will get the general idea on how they are, how they perform, aftercare etc. Get a few phone numbers

Gather ALL the information you can easily get now. This is the scary bit. You MUST have every single one of your debts on that list. I almost fainted when i did mine. But it is the best way (like ripping a plaster off). Then grab a cup of tea, and the phone, and call the IP's off your list. Talk to a few of them to talk the situation through, what you are thinking of doing etc. They will (if they are good), go through all the options available to you, and explain them all. Don't commit to anything then, just make notes and sit down the next day and look through them with a cool and clear head. Then take it from there

A few pointers for the call
The people you talk to at first will NOT be the IP's themselves. But don't worry. You will have an idea of things from the reviews on iva.com on their knowledge

Under no circumstances PAY ANYTHING at this point. If they say they want any kind of upfront fee, say bye bye

Be 100% open and honest with them, even at this stage. It is like any professional advice, they can only make a propper and correct assessment with all the information


Let us know how this goes, and do ask anything else you like, people here are a generally a good bunch and always happy to help

nogoodwithdosh

Thankyou so much for that.
I am scared to phone anyone at the moment because I fear that they will take my car and I won't be able to get to work.Then everyone will know that something has happened in my life, and it will all get worse if I have no job
Can you tell me do they go through your bank statements asking why did you buy this? Where did that money go ? Why did you buy that if you knew you couldn't afford it etc.I wish i knew where my money all went to and with my wifes problem cannot really say where it all has gone or what went wrong in our lives.
I am sooo scared .
I am trying to think rationally but I cant
Thanks for help, but I can't do it just yet

trudij

As long as your car is essential for your work (and not a bently or something!!) they wont touch it. Assuming you paid in full on the card - that will just be taken into the IVA - they didnt care what Id bought on my cards, they were only interested in the amount of debt I had.
I had to hand my bank statements over first of all, but only the last 3, and they havent asked for any since,nor did they ask me any questions about them. you will be asked how you got into debt - but honestly dont worry - you wont say anything they havent heard, and you wont be the worst story they will have had.
I know it feels like the most terrible thing in the world right now - but you are being really brave, youve faced the worst part, and you are taking steps to sort yourself out. Would it help to have a seperate bank account for your payments to come from?? you will need a cash only one when you are in an IVA anyway - and you can have direct debits coming from there - maybe get part of your wages paid straight into there so you can make the payments?? (sorry if this is a bit personal - but is your wife in GA or getting some sort of help for her addiction? Im just thinking that your situation might not be quite so favouably looked at if shes likely to keep gambling)

Ring them - they are there to help you, promise - and very very best of luck. keep posting too - theres a pretty good support network in here !!

xx

adfax

Just to echo what has already been said ... when you apply for an IVA they will ask to see your bank statements / card statements - but this is to verify how much you owe to who, and what your regular outgoings are. They won't go through and ask awkward questions, or be in any way judgmental.

As long as your car is essential, and is not excessive, then you will be allowed to keep it; after all, it is in nobody's interests if you can't get to work to earn money!

You will be asked to provide a background to your debt - be completely honest (I found this part quite useful to me as it helped me to understand how I had got in a mess).

You have done the hardest part which is to realise you need to do something about the debt.

Good luck.

althas

Aye, me also. Mine was from gambling debts from years ago (due to depression), which got me into a spiral

But also for me, they asked for statements to see balances etc. And I had to write a couple of paragraphs on the what, when, why etc. This goes into the proposal

I THINK, for the car, if it is of a reasonable value (over £2,000 sticks in my mind), they could ask you to sell it to realise some funds, and purchase another, cheaper, one. But certainly, they would not take it off you. You will be allowed travelling expenses for petrol, tax, insurance etc. All part of the allowances you can have. I could not say if it is on HP though, sorry

It is VERY scarey, no arguing with you on that. But at this stage you are only seeking advice from the IP's and are NOT signing up to anything. So they can not do anything as yet

Honestly, once you have gotten over that initial fear factor and made the call, the sence of relief is overwhelming. I slept like a baby the first night afterwards

I can recommend my IVA company to you if you wish as a starting point. They were superb and at no stage did I ever feel intimidated, nor were they condesending to me. If you would like the name and details, just PM me. I do not like to come out and name drop in a post, as it may be seen as me trying to sell them to you and your post locked or deleted for that

RuthnJasper

Just in case this helps - here is a link to the page of my dog Jasper's blog from my IVA-process Day of Days so you can see the sort of state I was in then.

Now I am SO much better, still in the IVA (two years to go....!), and financial terrors are a thing of the past. I learned my lesson well and still maintain that the IVA was the best thing I ever did.

http://jasper-thedogsblog.blogspot.com/2008/10/saturday-28-july-2007.html

Keep smiling. You'll be OK. xxx