Applied for IVA. Sick with worry

FoggyBrain_2

The crux is to come up with a repayment that is affordable to you --- the dividend this produces is secondary, as long as the creditors like it. I have seen 19p in the pound being accepted ---- if you went BR they know they would get a lot less (in many cases, nothing at all!)

GT wouldn't put it forward if they thought it wouldn't be accepted. However, as always, creditors are fickle creatures.

poorgrad

FoggyBrain wrote: »

Rules have recently changed regarding houses .... the OR will now keep a charge on the house for 2 and a bit years, in the hope that some equity materialises --- if, at the end there is equity -- the house could be sacrificed for the benefit of creditors. Grant Thornton should explore all avenues with you before you commit to IVA.

Is that 2+ years after the IVA has finished?? And if no equity materialises then what happens??

FoggyBrain_2

Poorgrad -- that's the situation regarding equity in bankruptcy. (2 and a bit years). In IVA the equity is looked at half way through the final year. What happens depends on the terms of the proposal --- modern (protocol compliant) IVA's ask you to attempt to release any equity (if it is over £5K). YUsually this cannot be done and the IVA extends by 12 months. If less than £5k equity it's usually forgotten. Older IVA's have different terms individual to each IVA.

judojub

Yes FoggyBrain. I have questioned GT repeatedly due to my slight obsession with worrying about things that have not even happened nor are likely to!
GT quite rightly said that they wouldn't waste our time, their time or anybody elses if they didn't think it stood a good chance!

BudgetDude

Thanks for the helpful advice everyone.

gpxbiker wrote: »

Have you spoken to them about BR or reconsidered it? As other people have mentioned you may still be able to keep your house and you would be debt free sooner than an IVA. Is it likely that with your home repayments that your property will gain equity again in the next 2.5 years? If it isnt likely I would probably take a step back and look at both options cloesely again.

To be honest it's not just about risking the house, there's a possibility that I may be considered for Directorship in the future and I'd hate to scupper that opportunity with a bankruptcy unless we really had no other choice.

We're okay with paying over a few years into an IVA, we got ourselves into this mess so it probably wouldn't do us any harm to learn to live without credit for a good while, providing the payments are realistic and affordable.

FoggyBrain_2

Dude -- that retraining is one big plus to the IVA process. Since starting mine I have never been so financially organised (never had savings before either - but am managing to save a little each month from the allowances .... I am sure something will blow up or disintegrate before the IVA is done! ).

strugglebunny

Dear Judojub
I fully understand your worried stated - the only things that kept me vaguely sane were the posts on this Board! The wealth of information helps so much, whatever stage of the process you are at.

I have 51k of unsecured debt and the creditors were offered £231 per month. I was told that the IP wouldnt put forward this amount if they didnt think it would be accepted - to my utter relief it was accepted by all, and the only thing to be changed on the proposal was the amount of fees the IP could charge - max £2000. I hope this gives you a glimmer of hope if you decide on the IVA. Good Luck to you and keep reading the Board, there's so much support and advice to help you get through!

judojub

Thanks so much everybody!
@ Strugglebunny. You are so right. This board has been great 'therapy' for me! I can read fact and info sheets until the cows come home. I can talk to my IP til I am blue in the face (she is probably sick of my constant tears!) but to read other peoples experiences and give myself some sort of idea of what I am about to put myself through is somewhat comforting:o

Now, I do have a question. I applied for a new bank account last week (probably left it a bit late I know). I still haven't heard anything from them yet. My worry is this. All my priority debts and unsecured debts all come out of the same account. I doubt I will be able to shift all my priority debts before next pay day. I am just concerned that once Lloyds get wind of what I am doing they will close my account resulting in my priority debts not being paid!! Is there anything I can do should this happen?

FoggyBrain_2

I doubt Lloyds could act that fast !!! In any event I am sure they have to give you adequate notice to enable you to make any alternative arrangements.

Which bank have you applied for ?

judojub

Haha Foggybrain. ) I have applied for the Natwest Step account. I took my forms of ID into my local branch last Thursday, they sent off my signed form for me internally, I phoned Natwest today and they said it hadn't been processed yet!!! Might take up to 10 days! Grrr.