Is it for me ?

Mkennedy1047

Hello everyone

Im looking for some help deciding whethere the IVA route will work for me.

First and fore most, I am very ashamed of what ive done and the mess I am in. Debt is a nasty thing, but I didnt think like that when getting top ups on my loan and punching those four numbers into the pin pad in the shops.

I have managed to amass £23k of debt. I cut my cards up a long time ago, and untill recently was paying in full every month the minimum payments required, grave mistake I know.

My situation changed in that I was living with my nan who is an angel :A for whats she's done. But she is getting ill, and I felt like I wasnt helping living with her. I also have a partner who we have a 2 and a half year old boy with.

At this point I spoke to Gregory Pennington, who suggested a debt management plan, as it would help reduce my outgoings, and maybe help me and my partner get our own place, while paying the debt off.

I did manage to get my own place which is great, untill the realisation of bills etc kicked in. I have reduced my monthly management plan to £240, after originally starting at £300.

I have litreally just got off the phone with them, and they are suggesting an IVA for me. I understand the 5 year term, and how it works but I just cant make my mind up if its for me .

The pro's are that all the debt will be payed off after 5 years, and among other things means that creditors will stay off my back. BUT I work for a high street bank ( I dont have anything owed with them by the way) and I obviously rent.

I am worried that in the future that having an IVA will stop me getting another job in the Financial industry, as I am good at my job and the chances are looking likley by the day. I am also worried that if we need to move flats/houses then any letting agency that does a credit check will just say no, even though I pay my rent on the nose every month.

I dont want to let my family down, especially my little one.

Can anyone help ??

Mark

Mkennedy1047

Has anybody got any words of advice at all?

Anyone in a similar position ??

Gragory Pennington are calling me at 6 tonight to talk about it.

danieln_2

Hi Mark,

There is another forum on the web which is purely for IVA's, it is lots busier and im sure you will get a response in a matter of minutes... plus many IP's post on there...

Not sure if I am allow to post links to other sites? Google for iva uk forum and you will find it!

I am in an iva and have found this site invaluable, im 11 months in.

thanks

churchrat

hi
you do know that will charge you for the IVA and that many people on this forum have had bad experiences with them? I am not saying that an IVA is not right for you, only that you should be very careful. I do understand the wish to be debt free and the wish for it to happen quickly, and an IVA can seem to be a quick answer, but please take the time to look around.

From what I understand, and IVA is very helpful for those with equity to protect in the home that they OWN. As you rent, I am not sure that an IVA is best for you. It may be best for GP tho, who will make a great deal of money from you.

Also, a lot of sites on the web giving "advice" about IVAs are run by the very companies that charge you for them.

Have you gone over to the debt free wanabe board? There are some very helpful people over there who will give you free advice.

One last thing, have you contacted any of the free advice givers about your debt?
These include ---
CAB
Payplan
CCCS (be careful if you google this, because a fee paying company has a similar name)
CAP (christians against poverty) these are REALLY helpful, and do not push any religion at you at all.

I dont think that an IVA will impact on your job, although if it fails then the bankruptcy which follows will. Have you asked GP how much of the money you have paid them has gone to service the debt and how much has gone in fees? If you go with a free company then ALL of that money would have gone onto your debt.

good luck with it all, I hope it goes well.

Mkennedy1047

I dont quite understand what you are sayin, although I appriciate your reply.

Are gregory pennington bad ??

I dont know where else to go now, becuse ive got everything with them !!!

Argh its all confusing who does what, who's good and who's bad !!


There isnt a charge for setting up the IVA, it just comes out of the monthly payment, but if the IVA clears after 5 years then it shouldnt matter ?

althas

Hi Mkennedy1047

First off, don’t panic

Secondly. Give yourself a BIG pat on the back for facing your problems. I know what it feels like to be in your position, I was there a year ago. So WELL DONE

Thirdly. Trying to clarify churchrat’s reply (I hope I get it right but will put it in my own words). Essentially, like anything these days, you need to shop around. Although technically and IVA is an IVA is an IVA, the important differences, is the company and team who do it for you. There are a couple of “types”

One will be like a lot of the NoWinNoFee accident companies. Where in your will talk to a “somebody” in a call centre, who essentially is an admin/sales person. They will take your details, and pass them on to the actual Insolvency Practitioner (IP) (Who is legally the ONLY person who can arrange the IVA). In the main, these call centres are just sales shops, they will make rash promises, throw figures around, seem like your best buddy. All to get you to sign on the dotted line and they get their commission. Now I must say that I have never had any dealings with Gregory Pennington, so I can not say if they are like this. I will leave that to anyone who has used them

Now what will generally happen with this type of company, is they will ask for a fee upfront to refer you on to an IP. This is generally 2X the proposed monthly payment. Now the kick in the pants for YOU, is this is paid WHATEVER. If the IVA is declined by your creditors, you still have to pay. So my advice, if ANYONE mentions a fee like this, then say bye bye there and then

The other, and my option, is a specialist company who just do IVA’s. They are ran by the IP’s themselves, so will not refer you on to anyone else, and so usually work on the basis that if your IVA is not agreed, you don’t have to pay any fees. They are infinitely more knowledgeable about IVA proposals, how different creditors work, what they like, don’t like etc. I went with a firm like this, and I can not praise them enough. From the very start they were kind, friendly, not pushy, efficient, not judgemental of me and my situation. They made the whole process very smooth and easy. I spoke to the IP herself to finalise the proposal. She rang me at 7pm one night because that was the only time I was available. You can not argue with that kind of service

The important thing is to get a feel for the company. You will be dealing with them for potentially 5 years, so you have to be comfortable with them in all aspects. The after service is vital, as you will have questions during the IVA’s life, annual reviews etc

Just because you have a DMP with GP, you do NOT need to stay with them for an IVA. A DMP is just an informal agreement between you and your creditors, they can go back on this at ANY time. An IVA is a court agreed legally binding agreement. So if it is agreed, that is it. As long as you hold up your end, the creditors are bound by it. So just make sure in your own mind that this is the right option for YOU in YOUR circumstances. A good IP will talk through ALL options with you to make sure you understand EXACTLY what you are agreeing to

Finally as to fees. You will pay for the IVA, after all the IP is a professional. BUT, the fee is all incorporated into the IVA agreement. You will not (apart from the up front rip off company fees) have to pay anything on top of the agreed figure. SO, on fictional figures:

Your Income is £1,000
The allowances for food etc is £800
Left to pay the IVA £200

IVA Payments = 60 X £200 = £12,000
IP Fees £2,000
Remaining to pay creditors £10,000

You owe £40,000
Creditor return £0.25 in the £1

That is it. You pay £200 a month that is all. The IP fees are agreed between the IP and your creditors. They may accept the IVA but insist that the IP reduces their fee to £1,500. Whatever. You pay £200. Simples!!

Sorry to go on and on, but I hope it all makes sense for you

Ok so to a generality

Visit www.iva.com

That is the sister site of iva.co.uk. On there you will find a list of IVA firms and IP’s, along with reviews and ratings from the customers. Now I hear rumours that some companies post reviews about themselves under false names, to make themselves look better. So read through ALL the reviews (not just the last 10), and I think you will soon get a picture of them all. Call two or three different companies and talk to them all. You are not agreeing to anything at this stage, but you will be able to get a feel for them

This is what I did, and this is where I found my IP. The IP is also a very prolific poster on the www.iva.co.uk web site, always answering questions from people, whether they are clients or not. That is what decided it for me. I will not name names on this post, incase people think I am really advertising for that company, but if you want the name feel free to PM me for it

If you feel your job may be affected by an IVA, ask an anonymous hypothetical question of your HR department, see what they say

For me, the IVA was not the CHEAPEST option. I rent also. But for me it was important that I pay back as much as I can to my creditors. After all, they did not force me to take the loans out and spend on the cards. That was my decision to do it. Now everyone is different and feels different about this, so that is something you will have to make your own mind up about. But do it AFTER you have talked to someone and gotten all the information about all your options. At the end of the day, it is your choice if you stay on a DMP, propose an IVA or declare bankrupt. Just make it an informed choice

Ok I have gone on long enough. I hope it has cleared up some of your worries and concerns and I wish you well in whatever choice you make

Mkennedy1047

A big Bump for this thread !

I did plum to go for the IVA, and it was approved by all creditors on the 9th December !

Its taken a big weight off my shoulders !. There have been no up front fee's, and its being handled by Freeman Jones ( part of Greg Penn)

Seems like its been the right thing, and the payments are manageable. I know its going to be hard, ie any work bonus/payrise will have 50% put towards the IVA, but its going to do me the world of good getting back on my feet!

Many thanks to the people above who gave me the advice

FoggyBrain_2

Well done Mk ! At the end of the day, you now have an "end point" to look forward to, and it's got to be better than all that juggling with debt. Hey ... you can even answer the phone again :-)

Best of luck with your journey.

sizzler

well done and good luck:j

Mkennedy1047

Yes , I can answer the phone again

And the end point is definitely something to look forward too !

I even got a month off over Xmas which was even better

I think I am paying a third of my debt off at this rate without any increases in payments