Feeling Hopeless and Desperate..

formidablelady

I am in the process of applying for an IVA. I am with Melanie Giles since the middle of May. The IVA is a joint one for around £60000 debt. Its complicated as all of my hubbys debt is with LTSB. My advisor has told me there may be a problem because of my mortgage of £1200 and secured payment to firstplus of around £550 we owe around £186000 on the mortgage and £60000 to first plus. She has said that when it goes to the creditors meeting they may reject it and say why don't I move out and rent in the area instead for around £800. I said I may as well go bankcrupt as the whole idea of the IVA was to avoid losing the house. She said they will say they have heard this before and no one ever actually does it and may reject the proposal altogether. Leaving me with a potential DMP which I am scared of as there is no security. Also I am getting loads of letters and as the proposal hasent gone ahead yet I have no ref number. I have had to unplug the phone as it rings constantly. I suffer from severe depression and I feel unable to face it. Hubby is supportive but useless. Feeling hopeless..

sunnyface

Sorry I don't really know anything about this but wanted to give you a hug anyway.
Nothing is ever as bad as it seems

FoggyBrain_2

Hello and welcome. Mel doesn't use reference numbers AKAIK, preferring to treat her clients as people, rather than numbers. If the creditors insist on one give then a combination of MG and a few random numbers!
She is an excellent IP and takes a very sensible and realistic approach, and I would say if anybody can get the proposal accepted, she can. Rest assured she will give it her best shot.

Best of luck.

formidablelady

Thank-you for the hug Sunnyface. Not normally this bad but it does get you down every now and again. And FoggyBrain thats very reassuring I was told she was good. I just wasn't expecting them to factor in the house. We worked really hard to get up the property ladder from a tiny terrace and I really would be heartbroken to lose it. It represents 20 years of scrimping to get into it. With hindsight I am not sure I would have stretched ourselves so far but my parents tought me that I would never get anywhere without a leap of faith sometimes. I am wittering now.I think they are offering 31p in the pound which is supposed to be not too bad?

debt_doctor

Hi,
I think you make a very good point. Why have an IVA if you will have to give up your property to get agreement?

How much equity is in your house and is it jointly owned?

DD

FoggyBrain_2

31p in the pound is good ( mine was accepted at 32). I have seen as low as 9p accepted in the last year (must admit I was surprised). Not that many get rejected, but creditors are fickle creatures!

If they refuse, they can't force you to sell up at the moemnt and a DMP, whilst not ideal would allow you to regroup and get a little more breathing space.

But, as said before .. if anyone can, Mel can! (I might add she is not my IP, having "discovered" her too late, but, if I could go back in time .......... actually, If I could do that I'd go back before the debts in the first place !!!! ).

milliemonster

Mel is a fantastic IP and you are in great hands with her, if she puts your proposal forward then she is very confident it will be accepted.

headstuckinsand

If I can make a suggestion - it's probably worth you dropping a post on the iva.co.uk forum as Melanie reads the posts on there and will be able to help with your concerns.

I was in the same position as you in that the only alternative to the IVA was bankruptcy or an unending DMP. My proposal was accepted at 22p in the pound.

Hang in there - it will all work out in the end!

adyj73

If there is little equity in the property they would be mad to reject the IVA with the state of the housing market at present!! Hugs for your stress

FavDaughter1

Hi, Mel is our IP,she has a very good reputation.

creditors may well have, "heard it all before" re BR,but that said it is a reality for some - we were just the same,if our IVA hadn't been accepted we really would have had to go the BR route,it wasn't a bluff!:(

but,she did get it through for us. have you got a date yet or had your meeting?

we've got our own house with a big secured loan which is a millstone around our necks,BUT,if we hadn't got the secured loan we'd have been forced to sell up, it feels like a no win situation!:(

it does get you down sometimes,you'll get there,big hug x