Iva draft-what do i check?

scared-sick

Hi,
I am about to get my IVA draft proposal through for me to check over and then i have an appointment on friday to discuss any questions.

Well my first one is....what do i need to look out for?

Are there any basics i should be making sure are included?
Is there anything i should be looking for that i need taken out?

Any small print i need to know about?
Any questions i need to be sure to ask before i sign?

Thank you

sourcrates

scared-sick wrote: »

Hi,
I am about to get my IVA draft proposal through for me to check over and then i have an appointment on friday to discuss any questions.

Well my first one is....what do i need to look out for?

Are there any basics i should be making sure are included?
Is there anything i should be looking for that i need taken out?

Any small print i need to know about?
Any questions i need to be sure to ask before i sign?

Thank you

Hi,
Just make sure you have all your creditors listed, that the payment you have agreed to is correct, and they have all your correct details, the document itself is likely to be a long one, with plenty of "small print", just take some time and read it from cover to cover, its an official legal document so make sure they have everything correctly recorded, that's about it really.

longtermplanner

You check EVERYTHING. Seriously. If there is something you don't understand, ask for clarification. Make a list and take it with you on Friday and work through it point by point.

What does your 'road map' for the next 5 years look like? What things might happen to you and how will this affect your ability to make IVA payments? Think about things such as:
- having a child
- children getting to 16 / 18 so you stop getting child benefit / child tax credit
- retiring
- mortgage rates increasing
- car dying

and talk through with the IP what would happen to your IVA in each of these cases.

Are you happy with the secured loan clause?

scared-sick

Thank you both.

I will definitely read it thoroughly and go through it with a fine tooth comb.
Are they not supposed to be 'transparent' though?
I mean surely they are not designed to trip you up and make you fail?

With regards to the secured loan side.
I have asked them several times and they got it confirmed from the iva practitioner (if thats what they are called) that they wil NEVER ask me to take out a high interest secured loan to release funds.
They state it goes against everything the iva is designed for.
Only thing is, i only have this verbally.
To be honest i wasnt too convinced as when i first mentioned it, they hadnt even heard of it.
I then quoted the iva protocol section that it came from and that when they went away and asked the actual practitioner.
But if my iva comes under 2014 protocol, this clause is automatically included, is that right?
How could i get them to put in writing what they have verbally stated to me?

I have considered things changing but to be honest i dont have much choice. Its a dmp for 26 years or this. Bankruptcy is not an option.

longtermplanner

scared-sick wrote: »

I will definitely read it thoroughly and go through it with a fine tooth comb.
Are they not supposed to be 'transparent' though?
I mean surely they are not designed to trip you up and make you fail?

They aren't designed to trip you up, no. However it is amazing how many people come on here saying "I'm 18 months into my IVA and I'me going to have a baby and stop work, what will happen to my IVA?" or not realising that if they can't remortgage then their IVA payments will probably be extended for for another 12 months. That's why you need to read it and think not 'is this good for me now?' but 'what could go wrong? how likely is that? Doesn it make sense for me to take this risk?"

With regards to the secured loan side.
I have asked them several times and they got it confirmed from the iva practitioner (if thats what they are called) that they wil NEVER ask me to take out a high interest secured loan to release funds.
They state it goes against everything the iva is designed for.
Only thing is, i only have this verbally.
To be honest i wasnt too convinced as when i first mentioned it, they hadnt even heard of it.
I then quoted the iva protocol section that it came from and that when they went away and asked the actual practitioner.
But if my iva comes under 2014 protocol, this clause is automatically included, is that right?
How could i get them to put in writing what they have verbally stated to me?

You ask them to put it in writing!

I have considered things changing but to be honest i dont have much choice. Its a dmp for 26 years or this. Bankruptcy is not an option.

why is bankruptcy not an option? do you have equity in your house? If you do, then is selling the house an option?

how large will your IVA payment be each month?

scared-sick

longtermplanner wrote: »

They aren't designed to trip you up, no. However it is amazing how many people come on here saying "I'm 18 months into my IVA and I'me going to have a baby and stop work, what will happen to my IVA?" or not realising that if they can't remortgage then their IVA payments will probably be extended for for another 12 months. That's why you need to read it and think not 'is this good for me now?' but 'what could go wrong? how likely is that? Doesn it make sense for me to take this risk?"

Yes i have thought about as many of these things as i can.
There are going to be changes in about 3-4 years time that will reduce my income but i have planned for this and i should always be able to make the iva payments.
My payment is set at probably the lowest they will accept on an iva.
There is always something unexpected that could go wrong but i figure that i have less chance of this happening in 6 years than in 26!




You ask them to put it in writing!


Am i actually allowed to do this?


why is bankruptcy not an option? do you have equity in your house? If you do, then is selling the house an option?


It may compromise my job.


how large will your IVA payment be each month?

It is the lowest they take.


I really think its the best way forward.
I have deliberated for a year and a half and i dont want to be here in another year asking the same questions.
It wasnt an easy decision and im still not 100% certain but im as certain as im ever going to be.

MikeRc

Hi, before you do anything !! Make sure you have spoken to at least four different IVA company's and choose the best one that will work and support you through the while process. I'm in an IVA because I was irresponsible with money and was never taught its true value. The hardest thing for me was learning to budget as this had never existed before. I looked at the IVA as a 60 month loan with a realistic view of not being able to re mortgage and so the possibility of another 12 payments. I personally feel it was the best thing that I have done. And i will be debt free and the end is in sight !

Also before i finish going on lol make sure that the budget planner is realistic and that you can afford the monthly repayments. Any decent IVA company, will juggle your budget planner to best suit your circumstances.

Good luck and please shop around for IVA company's
Another good resource is (iva.co.UK)

Anondebtadvisor

Congratulations MikeRc on taking control of your debts and your budget

I think you took the right approach by speaking to a few companies as we often see on here people go with the 1st company to offer them a solution only to find out later down the line they have made a mistake!

Sounds like you found the company that was right for you :-)

Scared-sick you still seem to have questions regarding your IVA? have your IVA company explained the IVA protocol 2014 to you??

scared-sick

Hi anon,

No they have not explained the 2014 protocol to me.
It was only mentioned because i learned about it on here and i asked them.
I have now received my draft and its definitely in there!!

The thing is now if that stays in, i dont think an iva will be right for me.
I would be better off staying on a dmp and then in 5 years sell my house.
Not because there is much equity but because if i had to take a high interest loan i would have a 5 year iva THEN a 5-10 year loan to pay off!!

I want to be debt free not end up in more debt for longer.

Also i dont understand about talking to 4 iva companies? Why?
What am i supposed to find out?

Mine seem fine, pleasant, easy to contact, answer questions, do things when they say they will etc what else do i need?

I appreciate all your replies.
I thought i had my decision made now i feel back to square 1!

Can i get the secured loan clause removed or is it law to stay in as thats the protocol?
Has anyone sucessfully had this removed?

Thank you all x

Anondebtadvisor

Not all IVAs are the companies are the same there are some out there that will propose an IVA under the sold protocol and so no mention of a secured loan only remortgage in month 54.

Seeking advice from a few companies helps you decide which one is right for you and to read reviews on your chosen company. If they are misleading you now imagine how you will be treated over the 5/6 years of your IVA.?

Ask your IVA company to propose the IVA under the old T&Cs if not find one that will

scared-sick

Thank you Anon.

I dont think this one is misleading me and with exception to this one point, they have been great.

Would ANY company be able to now propose an IVA under old t+c's?
Would this not go against current legislation or something.

My discussion appointment is tomorrow but i am going to ring them and see if i can bring it forward to today.
I will then ask them if they can take that bit out or put a bit in to say that although this is the protocol, as a company they will not ever as me to take out anything other than a remortgage.

Does that sound feasible?

I feel stuck to be honest.
Its like i dont have a lot of choice.
Lets face it, it wont bother the company if i say, if you dont take that line out i will pull out of the IVA!
They will just say, fine, stay on a 26 year dmp then!
That probably suits them better!!
Ive not got a lot to negotiate with!