iva worry help please

emptyspaces77

I am considering a iva my situation is this I owe a total of 23k on credit cards and personal loan I am paying out in the region of £700 per mth just to service these £250 of the £700 is for a personal loan and £450 to credit cards and after tax I have a income of only £958 per mth. I have spoken to some iva companies and cccs seamed to be helpful. But my questions and concerns are as fallows.


If I stop paying my creditors and go for a iva and the iva is rejected I will have seriously damaged my credit rating for nothing so why take the risk of doing that?


The majority of my debt is with NatWest £8k on a loan and £4k on a credit card so this means if NatWest vote no to the iva I will have permanently damaged my relationship with them for nothing which seams silly to me.


My other creditors include mbna, Barclaycard , virgin, thomascook,bank of Scotland. All of which I have credit card debts totalling in the region of £11k


my other worry is that I have been keeping up payments and had 2 late payment fees in the last 18mts so why would any of my creditors 75% of my creditors vote in favour of my iva proposal as it would not be in there interest to surely?


I was advised by cccs not to take any more credit out from today but that is not possible I was paid on 1stfeb and am already into my overdraft and need petrol in car to go to work so how the hell can I not use any more credit?


My employer can not change my bank details to be paid into another account by the last working day of this mth.


I have tried to open another bank account but am finding it very hard to find a bank that will help they seam only interested in transferring my currant account and not letting me open just a basic bank account so what do I do??


these are my main concerns any thoughts or answers you may have on my problem would be very nice to see.
Sorry if I am asking silly and obvious questions but my head is about to explode!


I am beginning to think I may be best off carrying on as I am and not doing anything and just keep up my minimal payments and head for a financial disaster worse than what I am in now.

FoggyBrain_2

Hi there. Your first and second questions : Why take the risk? are answered in your last paragraph ---- you are heading for a worse financial disaster if you do nothing -- your credit rating will go down the pan anyway.

If the creditors see you are heading for a financial meltdown they will most likely agree -- yes, you have been keeping up payments so far ( probably by increasing your lending ) but, eventually that will not be possible.

Once you decide an IVA is for you, you stop making loan payments, this will give you a surplus to buy fuel without further credit.

If you start an IVA you will have a while before having to change salary to a new account, so it can be done in time for next month. Co-Op are very willing to give cashminder accounts ( as long as none of your debts are with them) Have to be opened on the phone or in branch. Takes 5 minutes.

If you have no assets to protect and your job doesn't preclude it, also think about bankruptcy.

Speak to a few companies to see who you "gel" with. A list can be found at https://www.iva.com.

bernard828

If I stop paying my creditors and go for a iva and the iva is rejected I will have seriously damaged my credit rating for nothing so why take the risk of doing that?

The mere offer of an IVA to creditors doens't necessarily get reported to credit ref agencies. And seriously, your current financial situation is more important than some credit ref scoring.

The majority of my debt is with NatWest £8k on a loan and £4k on a credit card so this means if NatWest vote no to the iva I will have permanently damaged my relationship with them for nothing which seams silly to me.

With respect, NatWest, like most banks, view you as a number. You don't have a 'relationship' with them in any real sense of the word. And there is nothing wrong with making a sensible IVA offer to them.

my other worry is that I have been keeping up payments and had 2 late payment fees in the last 18mts so why would any of my creditors 75% of my creditors vote in favour of my iva proposal as it would not be in there interest to surely?

Your creditors will want to know what income you have, and what essential expenditure you have. In other words, they will want to know what your actual ability to pay without supporting yourself with loads more credit is. They will view it as what it is - an insolvency situation - and they will base their decision against what they view to be a fair offer. Incidentally, your prior payment record is simply not going to be a factor in their decision making.

I have tried to open another bank account but am finding it very hard to find a bank that will help they seam only interested in transferring my currant account and not letting me open just a basic bank account so what do I do??

Most banks will try to get you to obtain credit cards and overdrafts etc - it's how they make their money. You have to be firm and demand their most basic, basic bank account.

Gimpsdad

Try a Co-Op Cashminder, call 08457 212 212 and press the # key to talk to a customer rep. Those accounts are fabulous (I have one myself and swear by it) and are even available to undischarged bankrupts so there shouldn't be an issue in getting one.

Incidentally, an IVA proposal will have nothing to do with your actual creditors themselves, the decision as to whether it will be accepted will be made by creditor representatives such as PWC, KPMG, Grant Thornton, TIX etc and if it is your best offer and would return them more than a bankruptcy would then they are highly likely to accept it. No IP firm would waste time and money preparing a proposal that they felt didn't have an overwhelming chance of success.

PRIDDY7_2

I have an rbs account called think banking its 100% approval as a basic account you can look at it on internet if you google think banking. I went from a debt management plan to iva and kept up repayments until it was granted so if you do that its not causing any further problems. Good luck with sorting your debt out x

Anondebtadvisor

Many people like the Think Banking as you always know how much money you have available and this helps with money management.

Some people run the Think money and Co op cashminder together

Gimpsdad

Whilst respecting personal choice, it must be remembered that think bankings set up fee is £25 and the monthly account fee is £14.95. Why anyone would want to pay that for an account when the Co-Op's account is free to set up and carries no monthly fee at all is beyond me.

This is a money saving site, not a money wasting site.

emptyspaces77

I would like to thank you all very much for taking time to read my post and the advice you have all given me as a new member to this forum I am limited to my posts so I am not want to seam to be rude by not answering you all individually. I am currently in the process of approaching iva and bankruptcy company’s to see if they can help me and will get back to you all in due cause with results of my research.


I am still deeply worried about stopping payments to cards etc until I have decided my action plan

FoggyBrain_2

As well as the info at https://www.iva.com there is a lively forum at https://www.iva.co.uk

Gen up on as much info as you can.

Gimpsdad

If you cannot afford them then don't pay them, simple. You are only really unsure of the final route, it is a given that you cannot afford the debts. You can only keep your head above water as it is by borrowing more money so stop borrowing.

You will feel a lot better when you have got out of the habit of borrowing.

emptyspaces77

hi all once again for your help here is a update i have chosen a iva company that the national debt help line advised. i have istructed the company to go ahead and start the iva ball rolling.
i am in process of opening bank acc with the co-op they have accepted me.
cancelled al dd to credit cards
and tommrow i am going to phone credit card companys to inform them of my situation is that the correct thing to do?
should i make a good will payment to them untill iva is in place
my main worry is that my iva is accepted i sincerly hope it is or it will be crash and burn time

thanks again you have all been so helpfull. is there a area of the web site i could keep a diary of my experiance that may be helpfull to others just a thought