Panicky

joesaunt

I have been in touch with Payplan and an IVA has been suggested and initially I thought this would be a good idea. Now I am getting a bit panicky.

I have debts of £13000, mainly to Lloyds TSB (The others are to Egg, MBNA and Santander) Payplan said if my creditors don't freeze my interest I could be paying the debt off for 17 years in a DMP and in 5 I could be free with an IVA. With the IVA I would be paying £143 a month and have roughly worked out I would have paid nearly all of it off within the 5 years. I would be paying the same for a DMP.

From the call I had today from a lady at Payplan, I have started to panic. They want my car registration documents, incase the car is worth more than £2000, it is worth about £3500 and also, they want my ex-husband to sign a form re the equity in the house. The house (he lives in it, joint mortgage, which he pays) is at the moment in a break even situation. I cannot ask him to sign this, he is violent and this is the reason I left. I do not want him knowing anything about my life or even that I have just become financially challenged.

I need some advice, can Payplan take my car? Can they do the IVA without him signing the form or would I be better going down the DMP route?

The reason I chose the IVA instead of the DMP, is that if my creditors put "the black mark" against my credit status at the end of 17 years, I will never be able to get credit again! I am hoping in the the future I may meet a nice guy and maybe a mortgage with him this is why the 5 years of the IVA sounded better for me in the long run.

I haven't signed any paperwork at the minute, any advice you wondeful lot can give will be really appreciated!

Joesaunt

FoggyBrain_2

Hi and welcome. First of all I would suggest you pop over to https://www.iva.com and it's sister site iva.co.uk. Chat to a few IP companies ( it's free) and see what they advise.

They won't take your car, as long as it's not over extravagent ---- I know fellow IVA'ers who were allowed cars worth around £8k with no problems. Apart from anything else, insisting cars are sub- £2k means they are less likely to survive the 5 years without needing major repairs, therefore ... false economy!

House-wise I am not sure where you would stand, again, this is worth discussing with several IP's

Payments wise -- £143 per month in an IVA is £8580 --- a lot less than your total debt (which would be much more than £13,000 with interest and charges running!).

Payplan_company_representative

Hi

With reards to your car, the only reason why we need details of this is to check the value of your car. Your car is not at risk with the IVA so you do not need to worry about that at all.

With regards to the RX1 form that you will need to get your ex husband to sign is unfortunatly something that needs to be done. He is not at risk with the IVA and neither is his share of any equity. You would be better speaking to your case offcer about this as if you are not comfortable with doing the IVA she will be able to discuss other options that are available to you.

I hope this helps.

Lizzy.