Br ,iva ,dmp ?????

neylla

Hello, help please anyone

We got personal action plan from StepChange (they are brilliant)
They suggest BR ,but from many reason we try to avoid.
Second option is IVA or DMP.

The problem is the value of the flat we left to be reppo.
I gave the value to StepChange - 40k shortfall that what we thought will be.
Today I check the value online on many websites and the problem is the value is based on last sale and the last one it was our purchase in 2008 at 105k,so is still quite high.

Today value is 75k ,we still think is less.
At that case the shortfall at the moment is £20k instead £40k.
I am confused which value should I give does,any of this websites (zupla) gives the correct value of the property?

This is so important because that is the biggest chunk of my debts and monthly payment will be based on this.

any help appreciated

UpToMyNeckInIt

Difficult to advise without more exact figures. Don't rely on 'Zoopla' etc. By all means use them, but only as a rough guide.

How much are your Monthly repayments calculated to be?

Personally, assuming you are left £40k in the hole, a DMP is not a viable option, unless of course you fancy being in bad debt for the next 15-20 Years (I'm assuming you can afford £200-£250ish per Month). + 6 Years for your credit file to be restored AFTER your final payment.

So that leaves BR or IVA. With both, your credit file is restored 6 years from the START of the process.

With no assets / property to protect, I have to agree with Stepchange's Advice (that's a first I can assure you), that BR is the way to go. At least going BR is done and dusted immediately, or over a 3-Year IPA period, depending upon your exact circumstances.

If for whatever reason you cannot or don't want to go BR, then you are left with the IVA option I'm afraid, with will typically be a 5-Year contract in your case.

Please consider the ramifications before entering an IVA - speak to a few providers to see if it is the right option for you. Remember: Like BR, it is a form of insolvency, which in turn potentially puts all sorts of restrictions on everything from the ability to open a bank account, or even get a mobile phone on contract.

Saying that, there are fewer 'restrictions' on IVA customers vs those in bankruptcy.

Be aware: Stepchange, may refer your IVA to Grant Thornton. (Just google 'Grant Thornton Complaints' to see why that may not be in your best interests). They are all very competent etc. (Most of the problems seem to be associated with delays in closing the IVA, associated with reclaiming PPI). But with only a handful of IP's to cover their 20,000+ customer portfolio (nearly half the IVA market basically), one-to-one customer service is probably not their strong suit.

Google 'Insolvency Practitioner Reviews'. Contrary to what some might have you believe, many don't charge you anything 'up-front'. In any event, their fees are paid out of your monthly IVA payment (and agreed by your creditors).

I am glad that Stepchange have been good with you: I have a cynical view of the so-called 'independent' charities (Stepchange, National Debtline etc…) - they are all sponsored/funded by the banks/credit companies, and I can't help feeling that was who’s interests they were looking out for when they advised me. They tried pushing me towards a debt management plan (would have taken 10-20 years to pay off my debt + loads of interest).

Saying all that, I am sure that some private firms will ‘over-sell’ IVA’s to people for whom it may not be the best solution.

Whether you opt for BR or IVA, it is worth trying to withdraw what you can IN CASH, NOW. This is because many creditors, once they get wind of an IVA application, will freeze your account without warning. You may therefore need this cash buffer to tide you over. Your bank accounts WILL get frozen with BR.

Bank Accounts: If you still are in the pre-approval stage, and any of your debts are with your existing bank, you need to open a full current account with a non-creditor institution now! (less overdraft of course). Best not to reveal that you are considering an IVA or going BR though (no requirement to volunteer such information).

Important to do this before you are on the insolvency register, as you will then be limited to a handful of basic accounts.

Do not switch to HSBC/First Direct: when they find you on the insolvency register, (which they will), they will make you close your account.

Hope you get back on track financially soon as well.

neylla

thanks for that great reply,

Monthly repayments calculated by StepChange £243,
with DMP for 18 years :O ,based on wrong ?? value of the flat, still no idea what to do with this.
If I cant rely on Zupla etc. on who I can rely ,to get the right valuation ??
I know almost everything about BR,all ramification ,but it still scares me,so I am looking any other option avaliable

Do we need to be accepted to set IVA?

thanks for reply

UpToMyNeckInIt

... Your best bet is to call in a couple of Estate Agents for an accurate valuation.

What scares you about bankruptcy?

May be worth airing your concerns on the 'bankruptcy and living with it' board, and with Stepchange.

The CAB are very helpful as well.

Please bear in mind that whilst there are more restrictions with BR over an IVA, they are both forms of insolvency. I cannot help thinking that going BR is on balance a better option than an IVA, based on the information provided.

Furthermore, if you become one of the 35% of customers who's IVA fails, you are likely to have to go BR anyway (sorry if that sounds negative, but it has to be considered in your decision-making).

Do shop around if you are determined to go the IVA route (I am sure that many companies will gladly accept the business - no worries there), personally I would not want to end up a Grant Thornton customer.

It is up to you of course, and I hope that, whatever you decide, you are comfortable with it.

Best of luck.

FiatFan_2

I'm guessing from the figures above similar flats are being sold for £75k and you have/had £95k remaining when it was repossessed? Trouble with giving any IP a true figure would be the bank will sell it below market value just to get a quick return.

When we started discussions with SC we were going to keep our house, then realised the benefits of giving it up. Our iva was agreed on principle values which could be confirmed after the creditors meeting. IIRC our house sold for £25k below market value!

Just over a year on, SC haven't got a true figure for our total debt as some creditors haven't made a claim which I believe has to be done within 3 months of the creditors meeting.

Good luck considering your options

neylla

Thanks for yours all replies

Things against BR in our case:

- we will loose the car worth £2400 ,without we are unemployed

-we have surplus around £300 a month as far I know that will be taken (IPA) no much left to live really, I know that money will be taken anyway but still feel that OR can decided he can take more from us because for example we spent to much on food, or something.

-we are foreigners, husband older parents lives abroad in the house ,they want to put the house on his name, if that happen that mean this will be his asset?? If something will happen with this house he will have a heart attack ,because of the parents

-we know we can have £1000 back from OR for the car, but have car that value for the year of BR and after for 6 years (no loan to buy better) sounds like horror. And we not going to have much money for any repairs.

Any advice anyone ?:eek::(:eek:

UpToMyNeckInIt

Neylla,

You now make a slightly more reasonable case for an IVA.

I take your point about needing a half-decent car as well, but even a £2,400 car is going to need repair work over a 6-Year period, and I am sure you could get away with under-valuing it. (My IVA company told the creditors that my car was worth only £4,000, when it was worth an easy £7K).

If you are worried about budget allowances being too generous, you need to be aware that all IVA expenditure allowances are based around the Stepchange Budget Guidelines (worth a look) here:

https://docs.google.com/file/d/0B7LabJy69BP1M0gxeHQ1SDFiN1E/edit?pli=1

The only other thing to be aware of (and again, I suggest you have a chat with your nearest Citizens Advice Bureau), is that in an IPA (if you go BR), I am led to believe, that you may be given more generous allowances based on the 'Common Financial Statement' (not publically available though).

Hopefuly 'depth charge' will be along soon to advise on this point in more detail.

Therefore, you may find monthly IPA payments are cheaper than IVA payments.

All things worth considering, before you commit yourself.

Find_The_Real

My house was sold after repo for £25K less plus another £4k in fees so it is difficult to guess the shortfall figures. As I was having problems meeting other financial commitments at the time I opted for a DMP until the house was sold and I was given a shortfall figure and knew what my overall debts were until deciding to opt for an IVA, so this may also be something to consider. Due to waiting for the shortfall, SC put the mortgage account on hold for payments although they were aware of the debt.

It may also depend on who your mortgage provider is as mine which was NRAM generally insist on a 6 year IVA instead of 5.

I can only really advise if you can to take the time to research all the options available and speak to 2-3 IVA providers who will be able to advise on your own circumstances on what will be the best route for you.

Good luck.

neylla

Hello again ,thanks for all advice,

FTR ,I think that could be a something to consider ,as you said is to difficult to guess the value of shortfall.

Depth_Charge

UpToMyNeckInIt wrote: »

Neylla,

You now make a slightly more reasonable case for an IVA.

I take your point about needing a half-decent car as well, but even a £2,400 car is going to need repair work over a 6-Year period, and I am sure you could get away with under-valuing it. (My IVA company told the creditors that my car was worth only £4,000, when it was worth an easy £7K).

If you are worried about budget allowances being too generous, you need to be aware that all IVA expenditure allowances are based around the Stepchange Budget Guidelines (worth a look) here:

https://docs.google.com/file/d/0B7LabJy69BP1M0gxeHQ1SDFiN1E/edit?pli=1

The only other thing to be aware of (and again, I suggest you have a chat with your nearest Citizens Advice Bureau), is that in an IPA (if you go BR), I am led to believe, that you may be given more generous allowances based on the 'Common Financial Statement' (not publically available though).

Hopefuly 'depth charge' will be along soon to advise on this point in more detail.

Therefore, you may find monthly IPA payments are cheaper than IVA payments.

All things worth considering, before you commit yourself.

Hi

I have only just seen this:)

No, I will leave this one, others are doing a fine job, link below might be of some use however (the clothing & footwear allowance guidelines look interesting)

http://mymoney.nedcab.org.uk/moneyadvice/ipaipo.asp

Always best to get proper full independent advice on all options based on full circumstances before making any decisions.

Best wishes to the O/P