iva/bankrupcy

j_d_2-2

hi can anyone help? i have got myself so stressed out with all the companies offering iva's and who to trust, me and my husband are in debt of 24000 on loans, credit cards and catalogue. we are currently repaying 815 a month minimum payments. we have a mortgage but our home is in negative equity of approx 5500, a car on hp oweing approx 4000 worth the same and we have more outgoings than incoming and i go on maternity leave next week. we got our selves into this mess when my husband had a 700 per week pay decrease and used cards etc til he found new job, please help!!

FoggyBrain_2

Hi JD .... and breathe ........

Pop over to https://www.iva.com where you will find a list of reputable companies, with reviews. It's best to speak to a couple, to see who you feel comfortable with.

There is a solution out there for you ... a useful place to chat is also https://www.iva.co.uk where many IP's also post. So, speak to a couple of companies and ask loads of questions.

j_d_2-2

hi there, i went to there website last night and got a call from an indra weight from vincent bond, she advised an iva at 200 per month for 38 then 315pm for 24months when my car hp ends, this all just seems too good to be true and the insecurity that they can up your payments or extend your agreement just puts me off. a bancruptcy seems safer when reading others posts..

confused76

Hi there
I would take some advice from one of the free debt charities to start with to see if iva/br are options for you
Www.nationaldebtline.co.Uk
Www.cccs.co.uk
Www.citizensadvice.org.uk

FoggyBrain_2

There are pros and cons to both. BTW .. Vincent Bond do come well recommended.

Anyway --- in BR you will be paying much the same as in IVA, but for up to three years as opposed to 5 or 6. You can fail an IVA, but not BR. With BR you might lose the house ( it is in neg. equity now, but the OR will hang on to the interest for 2 years 3 months to see if that improves). If the OR thinks your car is too expensive it might be sold. Oh -- and I believe the fee has just gone up to £700

In an IVA they can ( and do) up the payments, according to your ability to pay ... more disposable income = bigger payments, but it should remain affordable.

Have a browse around the forum on the iva.co.uk site.

judojub

j_d wrote: »

hi there, i went to there website last night and got a call from an indra weight from vincent bond, she advised an iva at 200 per month for 38 then 315pm for 24months when my car hp ends, this all just seems too good to be true and the insecurity that they can up your payments or extend your agreement just puts me off. a bancruptcy seems safer when reading others posts..

Hi. This is not uncommon at all. If you have a vehicle on HP then you will be expected to pay that amount towards your IVA when your HP ends. If you enter an IVA they will conduct a yearly review. If from that yearly review your have more disposable income then they will take some of it (50% in a protocol IVA I think).
Somebody will come along and help more but you really need to explore all of your options and speak to a couple of IPs. I am not with Vincent Bond but they do come highly recommended!

judojub

FoggyBrain wrote: »

There are pros and cons to both. BTW .. Vincent Bond do come well recommended.

Anyway --- in BR you will be paying much the same as in IVA, but for up to three years as opposed to 5 or 6. You can fail an IVA, but not BR. With BR you might lose the house ( it is in neg. equity now, but the OR will hang on to the interest for 2 years 3 months to see if that improves). If the OR thinks your car is too expensive it might be sold. Oh -- and I believe the fee has just gone up to £700

In an IVA they can ( and do) up the payments, according to your ability to pay ... more disposable income = bigger payments, but it should remain affordable.

Have a browse around the forum on the iva.co.uk site.

Foggy knows his stuff!!:)

neil277

j_d wrote: »

hi can anyone help? i have got myself so stressed out with all the companies offering iva's and who to trust, me and my husband are in debt of 24000 on loans, credit cards and catalogue. we are currently repaying 815 a month minimum payments. we have a mortgage but our home is in negative equity of approx 5500, a car on hp oweing approx 4000 worth the same and we have more outgoings than incoming and i go on maternity leave next week. we got our selves into this mess when my husband had a 700 per week pay decrease and used cards etc til he found new job, please help!!

First keep away from IVA COMPANIES, talk to companies who don't charge for their service, 24000 is not a bad debt, the good guys will be along soon

judojub

neil277 wrote: »

First keep away from IVA COMPANIES, talk to companies who don't charge for their service, 24000 is not a bad debt, the good guys will be along soon

neil. Can I ask why you say that?

judojub

Just to clarify. There are many IVA companies out there that do not charge initially. Of course they have to earn a living and their fees would be taken from your monthly IVA contribution. I personally would avoid companies that want fees upfront!

FoggyBrain_2

Neil. Hi ---- all ( yes, ALL) IVA companies charge fees (how else would they operate?). If you found one that didn't charge they would get crushed in the stampede for their services!!! CCCS and Payplan are run as charity organisations ... yet still get much the same fees as any other IVA company. All such fees are agreed between the IP and the creditors and effectively come out of the dividend and so are not paid seperately by the debtor.

Admittedly, there are a few rogue companies who will charge up front fees and do very little ( if anything) for the money .... these are DMP companies, and are slowly being forced out of the business. IP's, on the other hand, are highly trained and highly regulated.