IVA Question

scandy

Hi,

Ive been looking into an IVA with a company as im currently around £25K in debt with CC and loans. After working out my Income and Expenditure with them it seems I have £360 a month to offer to my creditors.

Im hoping that the IVA is sucessful as im loosing sleep, and have literally no money to do anything. Im currently in a house with no central heating as the boiler has broken and needs replacing which is adding to my worries. Ive cut back on all expenditure, and trying all money saving techniques but ends are not meeting at the moment. I pay out over £700 a month to my creditors, on a flat month I have a short fall of £220 a month. Ive been using credit cards to fund the shortfalls since my salary reduction a year ago, which has been the big issue in my debts spiraling out of control.

I do own my own house, well its a shared equiry property with a housing trust, the equity is next to nothing so a remorgage isnt possible.

Bankrupcy was discussed as an option but I chose the IVA as I do not want to loose my house, and it could cause problems at work if I was made bankrupt.

Ive been told by the IP to cancel my direct debits to my creditors this month while the IVA is going through, and offer a token payment. Im confused what I should be offering, do I just break down the £360 I should have to give to my creditors between them all equally or does the one with the most debt get a larger share??.

What should I say to the creditors??

MBNA has written to me already saying they know Im seeking advice on IVA and as an alternative I can make reduced payments instead of the IVA. I called them to discuss it and the sent me a income and expenditure form, ive looked at it and do not realy want to complete it as it wants me to list household goods, which is worrying me in terms of bailifs and bankrupcy.

By doing this now and as payments are due it will surely show as defaults for this month, mind you my credit file is wrecked now and the IVA will register anyway.

An IVA seems the best solution for me I think. i discussed a DMP and bankrupcy but felt that the IVA was better option.

Does anyone have experience of IVA`s that they could share. Ive read loads of leaflets and websites about them, but would really welcome some real human advice. Im at the stage int he IVA where the company im using is organising a meeting with my creditors, and its all moving along ok, im hoping that the time scale now will not be too long as ive been paid this month today, and hope that by next month i may be under the IVA .

Sorry for the long post. Its my first post, and im at my witts end with the worry the debt and where the next penny is comming from, just wanted to share it with someone.

Scandy

bigmac2020_2

scandy wrote:

Hi,

Ive been looking into an IVA with a company as im currently around £25K in debt with CC and loans. After working out my Income and Expenditure with them it seems I have £360 a month to offer to my creditors.

Im hoping that the IVA is sucessful as im loosing sleep, and have literally no money to do anything. Im currently in a house with no central heating as the boiler has broken and needs replacing which is adding to my worries. Ive cut back on all expenditure, and trying all money saving techniques but ends are not meeting at the moment. I pay out over £700 a month to my creditors, on a flat month I have a short fall of £220 a month. Ive been using credit cards to fund the shortfalls since my salary reduction a year ago, which has been the big issue in my debts spiraling out of control.

I do own my own house, well its a shared equiry property with a housing trust, the equity is next to nothing so a remorgage isnt possible.

Bankrupcy was discussed as an option but I chose the IVA as I do not want to loose my house, and it could cause problems at work if I was made bankrupt.

Ive been told by the IP to cancel my direct debits to my creditors this month while the IVA is going through, and offer a token payment. Im confused what I should be offering, do I just break down the £360 I should have to give to my creditors between them all equally or does the one with the most debt get a larger share??.

What should I say to the creditors??

MBNA has written to me already saying they know Im seeking advice on IVA and as an alternative I can make reduced payments instead of the IVA. I called them to discuss it and the sent me a income and expenditure form, ive looked at it and do not realy want to complete it as it wants me to list household goods, which is worrying me in terms of bailifs and bankrupcy.

By doing this now and as payments are due it will surely show as defaults for this month, mind you my credit file is wrecked now and the IVA will register anyway.

An IVA seems the best solution for me I think. i discussed a DMP and bankrupcy but felt that the IVA was better option.

Does anyone have experience of IVA`s that they could share. Ive read loads of leaflets and websites about them, but would really welcome some real human advice. Im at the stage int he IVA where the company im using is organising a meeting with my creditors, and its all moving along ok, im hoping that the time scale now will not be too long as ive been paid this month today, and hope that by next month i may be under the IVA .

Sorry for the long post. Its my first post, and im at my witts end with the worry the debt and where the next penny is comming from, just wanted to share it with someone.

Scandy

Scandy,

a DMP is just as good as an IVA and you would actually be paying everything back, even tyhough it may take longer. From a credit point of view a DMp is actually viewed as and IVA anyway. If you speak to the CCCs they will arrnage this for you at no cost and they will ensure that you have sufficient funds to pay for essentials like food, mortgage, utilities etc. Beware the MBNA, they will allow you reduced interest until you have reached a sum that means your payment to them meets their minimum payment criteria, at that point they will return you to full interest payments. If you use the CCCS or a n other party then they will deal with ALL your creditors at once and you will only have one fixed payment to make to them, whereas if you try and go it alone with each creditor then you will have to make the arrangements, I think the CCCS have slightly more pulling power than us mere mortals.

As far as your token payment is concerned, when I started with the CCCS they advised to make a payment of £2 to each one by postal order, then the following month the full agreed payment of my DMP was made to them. Your IP should advise on the amount they suggest.

Good luck with whatever you decide. :rotfl:

james32_uk

MBNA are just using their usual tactics to try and get higher payments than everyone else. Ignore them and make your decision on what you want to do with CCCS. Token payments can be as low as £1. There is absolutely no point in making payments any bigger. Best to save up some cash now for when youre in your IVA/DMP.