Repairing credit rating after IVA?

RAS

love2learn wrote: »

The only fee they mentioned was £500 to protect her house, as she has a mortgage on it.

As mentioned previously "If you have any equity, this is usually released in year 3 or 4 of the IVA (remortgage/sale). "

This means that if she keeps up with the mortgage and makes a profit, they can use it to pay her creditors.

RAS

The right people to go to

You need non-profit debt counselling help, in other words a one-on-one session with
someone who is paid to help you, not to make money out of you. This is different to ‘free’: many commercial companies say they’re free as you’re not charged directly, but you’ll still pay somehow. The three places I'd recommend are:

[FONT=arial,helvetica,sans-serif]Consumer Credit Counselling Service - Website: [/FONT][FONT=arial,helvetica,sans-serif]CCCS[/FONT][FONT=arial,helvetica,sans-serif] Telephone: 0800 138 1111[/FONT]
[FONT=arial,helvetica,sans-serif]National Debtline - Website: [FONT=arial,helvetica,sans-serif]National Debtline[/FONT][FONT=arial,helvetica,sans-serif] Telephone: 0808 808 4000
Citizens Advice Bureau - Website: [/FONT][/FONT][FONT=arial,helvetica,sans-serif]Citizens Advice or visit your local CAB centre (find nearest)[/FONT]

backontrack_2

Hi there,IVA's are similar to a Scottish trust deed. I have just finished (HURRAH!!) a trust deed. This lasts for 3 years and they will wipe out a lot of the debts. They contact your creditors and if the majority agree they will enter into the trust deed. It then becomes protected which means they cannot claim for interest and cannot contact you after this. It is an informal bankruptcy. I finished mine yesterday and they say they will now contact the last two creditors who claim my debt is not settled (MAx Recoveries) who then wipe this off. On my credit report it says that all the debts less the max recoveries is not settled so for me this was a godsend. Mine was with Carrington Dean in Glasgow. Good luck..

love2learn

RAS wrote: »

As mentioned previously "If you have any equity, this is usually released in year 3 or 4 of the IVA (remortgage/sale). "

This means that if she keeps up with the mortgage and makes a profit, they can use it to pay her creditors.

Sorry, there's so much good information on my thread, it's hard for me to take it all in quickly. Does the above apply to the Scottish trust deed? And it does make common sense that they will use any equity in her home to pay the outstanding credit... what do you think that company were talking to her about then, protecting it only for a while? Then selling it?... thanks for your help!

love2learn

backontrack wrote: »

On my credit report it says that all the debts less the max recoveries is not settled so for me this was a godsend. Mine was with Carrington Dean in Glasgow. Good luck..

So on your report most all of the except one is "settled". Did you have a mortgage when you took out the deed? And if so, were you able to keep your home?

RAS

Hi

Just looked at a couple of other Scottish posts on here and some have trust deeds run by Payplan, so I would give them a call first then check the other agencies.

You need good independant advice on Scottish law and in your GF's situation it is really important that she gets it right.

Could you get her to post here as well?

danno_4

hi
read my thread before proceding.
danno

love2learn

danno wrote: »

hi
read my thread before proceding.
danno

I read your thread, and although the prospect of coming to an agreement with the companies may sound good and ethical in principal. In the real world, it's no good for us. She's 29, we are planning on having a kid... not with the amount of debt she has though... she's having to borrow from one company to pay another as well as basic living needs just for herself, (with exsessive interest and late charges) never mind a kid. And with me working, everything would go on bills... So it has to be the Scottish Trust Deed route. 45k of unsecured lending on a Debt Management Plan is like a life sentence of paying back debt, and would get in the way of basic life goals, like having a child.
Although I accept that she's no angel, she did have a problems with spending... and the "so called responsible lenders" added fuel to the fire, so it's time to call the Deed Brigade and put their fire out. The Scottish Trust Deed option sounds like it's for us. I'm going to gather as much information as possible for her first though. Thanks for your input