IVA support and discussion thread

gb00353

I'm hoping you can help me with general advise and thoughts in advance of a potential stumbling block with my IVA

Currently with Stepchange on month 20 of my IVA and all going well. Never hear from Stepchange and they reply swiftly to emails if I need them

Basically, at the moment I live with my parents, however due to a personal matter I won't be able to from May this year. This means moving out. My rent will stay the same, but i'll need to pay for bills.

Basically the £500 rent I pay my parents includes all bills and food. So when I move out i'll have to pay more, which will mean reducing my IVA payment which i'm terrified about talking to Stepchange

I know about variation meetings etc as i've researched, but I was hoping those experienced IVA members here could advise me on a few things first

* How generally supportive of things like this are people like Stepchange?

* Do I have to ask their permission to move, agree to a specific rent etc? I'm not going to move into a palace obviously!

* What documentation will they need?

Also - to complicate things! - My parents have suggested offering a lump sum to settle this of £7000. What are your thoughts of this being accepted in the climate?

My IVA debt is 32k
I'm currently forecasting to pay 42p in the pound
This is from a monthly payment of £180 and an additional £186 a month from October when my car HP finishes

In the first review period i've paid in £1700 all of which was swallowed up by fees

Thanks for your help, and sorry for rambling!!

emmapieland

Another question;

Although it is my husband who is doing an IVA, I have debts myself on credit cards on 0% deals. I have about £6000 that I keep shifting when the 0% deal ends. Should I maybe try and shift the debt where the deal is ending soon before my husband enters into the IVA. In other words, will his IVA make me less likely to be offered 0% deals by my existing cards.

I did the eligibility checker on MSE for credit cards and it looked really positive, like I would be likely to get most cards. Is this likely to change once my husband's IVA starts?

Thank you in anticipation

UpToMyNeckInIt

...You may find (as my Wife did), that because she is 'financially associated' to me by way of a joint mortgage, she too struggles to get credit.

So your best bet is to be as financially separate from your Husband as possible. But if you are in a joint mortgage/tenancy, I'm afraid you may experience some issues as well.

Anyway, learn your lesson now, and don't get really badly into debt like a lot of us.

Switch to a good deal prior to the IVA as you suggest, and pay it off within the 0% timeframe.

It's the switching between 0% deals where it all started for me, and they also give you a higher and higher limit each time you switch (I had £18,000 on a 0% deal at one point). After a while you find that your credit line is over-extended, and there are no more 0% deals left - then the swines ramp up the APR - often way over and above the original APR because, as they say: 'your financial situation has changed', and that's it - you are trapped! That £18K of mine at 0%, became 22%, and suddenly there was around £350pcm in interest.

longtermplanner

emmapieland wrote: »

In other words, will his IVA make me less likely to be offered 0% deals by my existing cards.

I did the eligibility checker on MSE for credit cards and it looked really positive, like I would be likely to get most cards. Is this likely to change once my husband's IVA starts?

Yes. As you have a joint mortgage you are financially associated.

Take advantage of your good credit rating NOW whilst you still have it.

Find_The_Real

As it's been a while just bumping up this thread a bit.

It's been interesting to see all the DFD issues coming to light on both here and the other side, with a whole range of opinions on this. It is a shame that PPI has had a negative effect on those who are especially coming to the end of their IVA and that there are still not set processes in place to deal with this.

I am still waiting for the outcome of mine to be closed off but as it has only been six months from the start of it, I certainly can't complain of any delays - I am just like everyone else a little impatient to get that certificate which is certainly no reflection of my IVA company.

Depth_Charge

Find_The_Real wrote: »

As it's been a while just bumping up this thread a bit.

It's been interesting to see all the DFD issues coming to light on both here and the other side, with a whole range of opinions on this. It is a shame that PPI has had a negative effect on those who are especially coming to the end of their IVA and that there are still not set processes in place to deal with this.

I am still waiting for the outcome of mine to be closed off but as it has only been six months from the start of it, I certainly can't complain of any delays - I am just like everyone else a little impatient to get that certificate which is certainly no reflection of my IVA company.

Hi

There does still seem to be a fair amount of debate around concerning PPI & perhaps an increase in discussion and questions regarding the secured loan issue.

More to come on the secured loan issue & the 2014 IVA protocol I am reliably informed.

My opinion is that the secured loan issues including the 12 month extension clause need full clarification ASAP.

Those currently subject to an IVA deserve nothing less that full consistency and clarification on a very important area.

The issue is becoming a definite talking point amongst the debt advice sector with questions being raised

DC

Find_The_Real

Hi DC

From what I have read DFD have always seemed to favour secured loans as an option for the equity release issue and now seemed to have come up with the idea to change current IVA customers to the new 2014 one that includes that option. It has certainly sparked an interesting debate even amongst other IP's. As yet they seem to be only the ones trying to use this.

I am guessing until someone challenges this and goes through the formal complaints process so it can be taken it further there is going to be a lot of concern from people as to whether this kind of tactic should be allowed.

From a personal perspective I would be pretty hacked off if my own IVA firm wanted the change from my protocol (which fortunately wouldn't happen I don't think from the comments my own IP has made about this situation) but you do start to wonder if other firms will consider this to be an option.

It will be interesting to see how things pan out over the next few months as more and more people get these letters from DFD.

I think the new 2014 protocol does need a lot more clarification and I think it is unfair that some companies out there seem to think it is reasonable to keep moving the goalposts of those in an IVA. You are constantly told that once you sign the forms you are bound by the terms in your IVA but it would seem that this does not mean your IP is also and I think an awful lot of people are mis-informed when signing up for this.

I still think I have made the right decision but then I do not have the problem of owning my own home, I think if I had then I would have considered all the options very carefully before deciding on an IVA. With the right company they can be a stress free option but as we are seeing more and more people are having issues, especially those that are the end of their terms.

Depth_Charge

Find_The_Real wrote: »

Hi DC

From what I have read DFD have always seemed to favour secured loans as an option for the equity release issue and now seemed to have come up with the idea to change current IVA customers to the new 2014 one that includes that option. It has certainly sparked an interesting debate even amongst other IP's. As yet they seem to be only the ones trying to use this.

I am guessing until someone challenges this and goes through the formal complaints process so it can be taken it further there is going to be a lot of concern from people as to whether this kind of tactic should be allowed.

From a personal perspective I would be pretty hacked off if my own IVA firm wanted the change from my protocol (which fortunately wouldn't happen I don't think from the comments my own IP has made about this situation) but you do start to wonder if other firms will consider this to be an option.

It will be interesting to see how things pan out over the next few months as more and more people get these letters from DFD.

I think the new 2014 protocol does need a lot more clarification and I think it is unfair that some companies out there seem to think it is reasonable to keep moving the goalposts of those in an IVA. You are constantly told that once you sign the forms you are bound by the terms in your IVA but it would seem that this does not mean your IP is also and I think an awful lot of people are mis-informed when signing up for this.

I still think I have made the right decision but then I do not have the problem of owning my own home, I think if I had then I would have considered all the options very carefully before deciding on an IVA. With the right company they can be a stress free option but as we are seeing more and more people are having issues, especially those that are the end of their terms.

Hi

Very interesting and balanced post as usual

In my opinion the PPI & now the secured loan issues have and will put people off going down the IVA route.

The idea of a debt solution (especially a formal one) is for clarity and an affordable CLEAR end result.

Can the IVA industry honestly say with hands on heart that the above is the current situation with IVAs?

Huge amounts going out of the arrangements and into the pockets of the PPI claim companies and now the secured loan issue.

Clear your debts in 5 years, write off huge percentages of your debts with one affordable monthly payment!.

Maybe some of the adverts & claims need looking at again along with the marketing and sales as some aspects of it are looking a little dated now or out of touch even!

My take as always & all comments very welcome

DC

UpToMyNeckInIt

Glad this thread has been bumped up, and good points from FTR & DC as usual.

My view is that, whilst I broadly agree with what you have both said, I think there is far too much wild speculation and 'scaremongering' over the 2014 protocol at the moment. Everyone seems to associate it purely with secured loan equity release, when I suspect it also contains a lot of other beneficial stuff - like allowing IVA completion with PPI investigations still ongoing.

I am not dismissive of the secured loan issue: It is apparently far easier to get a SL, rather than a whole remortgage, so clearly the equity release provision will now ensnare more IVA homeowners than it does at present. Perspective IVA customers will have to factor this in before deciding on proceeding, and indeed consider taking out a secured consolidation loan as a possible solution. (I know I tried to and failed).

You would also need your head examining if, as a customer looking for a debt solution, you did not first look at recovering PPI.

'Caveat Emptor' is the phrase that springs to mind. Clearly though, customers don't always properly research all their options, and get pressured into / mis-sold the wrong solution (be it an IVA, or a never-ending DMP).

I've got to agree though, that more people will understandably be put off IVA's (homeowners at any rate).

But there are debts that cannot be included in say a DMP, which can be included in an IVA (HMRC debt for example).

Personally, I would still prefer a 5-Year IVA, and a 15-Year affordable secured loan, (with a restored credit record after year 6), over a 20-Year DMP (with credit rating restored after 26 years). We must not forget as well, that strict affordability criteria apply to SL criteria/qualification.

At least in year 6-7 of the IVA/Secured loan combo, a customer is free to shop around for an even cheaper loan product.

Ah well, time will tell.

UpToMyNeckInIt

...Just following on from my previous comment, a reputeable IP on another forum posted the following comment which helps put into perspective how much impact 'secured loans' will or will not have:

'My own view is that this is a storm in a teacup, as the ability to get a secured loan based on the other resttrictive criteria of the protocol - affordability, length of term etc will make it quite diffiult for anyone to get a secured loan.

We have recently done a back review in my portfolio of cases where equity release is relevant over the last 13 months, and on only one occasion would it have been possible.

As an IP in practice, I have to work with what I am given, and if the Insolvency Service choose to amend the rules then so be it. Personally I don't see protocol DMPs growing at the expense of IVAs - but it is vitally important that clients be given the full facts to enable them to make appropriate choices at the outset.'

...just another opinion of course, but seems just as reasonable as any other.