Rather nervous!

katevw1

Hi, just woundering if anyone might know what might happen. I will do my best to explain:

My partner is in an IVA. I have stumbled upon some paperwork this morning about him claiming PPI back from a First Plus Loan. Fine - I don't have problem with this. Underneath this was some Consumer Action paperwork about his extraction from his IVA and going bankrupt. There was a payment plan set up for £210 a month, a payment slip filled in for his first payment.

Now, I'm a little baffled about this. He has not discussed any of this with me (I'll deal with that when the time is right). We are not behind with mortgage payment, loan payment (which is secured against the house) or any bills what so ever. His IVA payment as far as I know is up to date. Money is tight but we are managing.

1.If he goes bankrupt will we lose the house?
2.Will the loan go into the bankruptcy? - This is my main concern - My Grandpa signed for something on this loan application back in 2006. What will the consequence be for my Grandpa?

Bit of a long post, apologies. I want my facts straight before I try to persuade him not to do this. He is half way through the IVA. The company are money (blood) sucking greedy people but he will pull through the effects of the IVA sooner than starting bankruptcy now, surely?

Thanks, in the hope anyone can help!

NeverAgain_2

Your partner's liability for the First Plus loan will go into his bankruptcy, but your grandfather's will not.

Assuming, as is likely, the 'something he signed in 2006' was a guarantee of some sort.

Losing the house is by no means certain in the event of your partner's bankruptcy.

The likelihood of that will depend on his overall financial situation and particularly the amount of debt secured against the house in relation to its value.

Ineedaname

II can't help any with advice, but am a bit confused.

You say you found a payment slip for £210 for his first payment, yet he is half way through his IVA. Can you just confirm that payment slip is the first payment for his IVA and not something else?

If it's related to the IVA then I'm overthinking and it's irrelevant. But if it's for something else then I'm concerned he may be paying someone for advice which isn't necessary.

tigerfeet2006

katevw1 wrote: »

Hi, just woundering if anyone might know what might happen. I will do my best to explain:

My partner is in an IVA. I have stumbled upon some paperwork this morning about him claiming PPI back from a First Plus Loan. Fine - I don't have problem with this. Underneath this was some Consumer Action paperwork about his extraction from his IVA and going bankrupt. There was a payment plan set up for £210 a month, a payment slip filled in for his first payment.

Now, I'm a little baffled about this. He has not discussed any of this with me (I'll deal with that when the time is right). We are not behind with mortgage payment, loan payment (which is secured against the house) or any bills what so ever. His IVA payment as far as I know is up to date. Money is tight but we are managing.

1.If he goes bankrupt will we lose the house? No, you will not necerally lose the house. The OR (official reciever) will wait 2 yrs 3 mths aftr BR (bankruptcy) and look at how much the house is worth. If it is in negative equity then he will pass his interest back you. If there is equity and you have a joint mortgage then he will want your OH's interest ie: £10k equity, so OR will want £5k to pass his interest back to you.
2.Will the loan go into the bankruptcy? - This is my main concern - My Grandpa signed for something on this loan application back in 2006. What will the consequence be for my Grandpa? As it is secured against the house it will not fall into the BR and will still have to be paid as normal.

Bit of a long post, apologies. I want my facts straight before I try to persuade him not to do this. He is half way through the IVA. The company are money (blood) sucking greedy people but he will pull through the effects of the IVA sooner than starting bankruptcy now, surely?

Thanks, in the hope anyone can help!

How much is the mortgage and secured loan a month? Is it comparable to renting a similar size house privately? That is another thing the OR will look at.

Please get him to phone some one like National Debtline (will get you a link.) and have a chat with them about your options.

Main recommended sources of help:

• Consumer Credit Counselling Service - Website: CCCS Telephone: 0800 138 1111
• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)

Others:

• Business Debtline - Website: Business Debtline Telephone: 0800 197 6026
• Christians Against Poverty
• PayPlan
• TaxAid - Help with tax debts.

Also have a read of the sticky marked 'Look Here First-Bankruptcy Help.' https://forums.moneysavingexpert.com/discussion/1056083

You need to understand all the implications of the IVA and BR.

katevw1

Thanks for your replies, much appreciated.
The payment slip is something to do with the bankruptcy, a fee of £1250, I think, "split into installments as agreed". I don't know what he's agreed but it's not to do with the IVA.
I thought that everything was OK but maybe I'm wrong. He doesn't talk to me much about problems, particularly money. I have my own problems with money, I'm not in a position to advise him what to do but I am reading through as much as I can on here. It's very helpful stuff. I'm just a bit thick as I don't understand much of it!

tigerfeet2006

Right, you need to talk to him. He shouldn't be paying anyone to go through the BR process.

Both of you should be talking to the debt charities about your money problems. If you are a couple then you really should be talking to each other about finances as well.

ANYTHING YOU DON'T UNDERSTAND PLEASE ASK AND SOMEONE WILL BE ALONG TO HELP WHERE THEY CAN.

Ineedaname

I didn't say anything earlier because I was in shock as I can't think of anything to do with BR which would cost that much in instalments. Surely even the charging agencies fees wouldn't be that high?

But thank you Tigerfeet, you've prompted me out of shock.

Kate - please STOP hiding your finances from each other, it's not healthy for the relationship or your ability to live within both your means.

Oh, and you're not thick at all, it's a whole new language to learn on here. Keep reading and please, please keep asking questions so we can try to help.

katevw1

Oh I'm not hiding mine. He knows all about it. In fact, everyone I know knows about my debts! I've got my debt free date this time in 2013. It was better for me this way. My partner on the other hand did a web search which landed him in the IVA. He'll tell me when there's no going back. We lead very separate lives, he tells diddly squat about everything. I vented my frustration on facebook (oops) once, his mum saw it and all she said was the men in her family were like that, never been able to change them. I asked him last night if everything is ok. He said yes and then said I was being wierd so what was wrong with me?! Im up at silly o'clock 'cos clearly it's bothered me, I also am thinking about one of my pupils as she is burying her cousin today. Life could be worse!

I'm going to read all this either as:
1. The mortgage payment has gone up with the interest rate rise and he cannot afford to pay the IVA
or
2. He's come to his senses (slim chance!) and may possibly think he may have been mis-sold the IVA.
The latter being a thought I may have suggested at least a year ago as I'm sure if he had contacted one of the FREE charities then he may have been advised to do a DMP.

I've just had a look at the consumer action website and it says nothing about extraction from an IVA. Maybe this is info they tell you when you contact them but the letter says quite clearly " we would like to welcome you to the IVA extraction programme". It goes on to say "various stages and procedures needed to complete the bankruptcy process".

Maybe bankruptcy is the only route out now. Damn them. Thats an addional 3 years until the credit file is clear.

Thanks for you help and support. You are very patient people.

Ineedaname

Morning Kate, I'm still extremely concerned that he is paying an extortionate amount for advice unecessarily. If he goes BR there is no need to be extracted from the IVA as BR over rides the IVA and all debts are wiped out.

In fact, I believe he can just default on the IVA to save up for the BR fees of £650.

Please, please talk to him about this.

katevw1

Panic over. All sorted. Evidently my OH had a phone call from consumer action. He got the info (an agreement of somesort & a contract to sign!) sent to him to get them off the phone. He's not doing it. I explained that you dont pay for the privilidge for someone making you bankrupt. He had no idea about court fees etc so whoever they were didn't really do a very good job of explaining it all!
Anyway, I am thinking again now. I think it might be a kind of trick. The consumer action logo on the letter is sort of blurred and looks a little dodgy. I'm going to phone CA myself and see if this is the advice they give out. Also, isn't CA a charity based organisation - which i would of thought WOULDN'T call people out of the blue?

Thanks for your assisstance. I do have terrible panic moments don't I!x

tigerfeet2006

Noooo! the Consumer Action Group are a completely different entity to Consumer Action, the people your other half has had dealings with. These people are vultures who prey on the weak and screw money out of them for doing b*gger all.

Please get him to ring someone like National Debtline and have a chat with them. Or if he has not got to that stage yet get him to come and chat with us.

Just out of interest who is your DMP with?