Money plus IVA help asap please

[Deleted User]

Hi,

My neighbour is on the verge of a nervous breakdown.I've been downstairs all day trying to sort this mess out.

Basically her outgoings are about £1200 and shes got about £1000 in-goings.Her debts are about £14000.

I've put a plan together for her to sell her car and get a runabout(car is worth about£3000) and off to the bank first thing Monday morning and CAB.

Now the major problem is that she has been cold called by 'moneyplus' and been put into a voluntary IVA.

She signed all the forms about a month ago.

They told her to close her account with lloyds and cancel all direct debits and open a new one with nat west.This she has done but hasn't put her direct debits back in place.She can't get any loans etc as she's just changed banks.
Now I know there is a 14 day cooling off period for loans etc but not sure about this IVA business.She needs out of this as her problems are manageable.

My plan is to get her old account back into place with lloyds on Monday and try and consolidate all her debts into one loan.She has £35000 in equity so could also re-mortgage.

Probably sell her car and swap for a runabout for quick cash.

Now I want rid of these 'Moneyplus' people and this IVA.

Any help much appreciated as she is at breaking point.

cheesedoffwithdebt

It sounds like you don't know what you're doing on so many levels that I am not inclined to start setting you right - the iva sounds just fine for her and cab will be able to help . She cannot get loans no but she doesn't have the means to repay a loan according to your figures / during an iva you're not supposed to borrow any more money anyway. I'd leave this problem to the experts frankly

[Deleted User]

cheesedoffwithdebt wrote: »

It sounds like you don't know what you're doing on so many levels that I am not inclined to start setting you right - the iva sounds just fine for her and cab will be able to help . She cannot get loans no but she doesn't have the means to repay a loan according to your figures / during an iva you're not supposed to borrow any more money anyway. I'd leave this problem to the experts frankly

Thanks but you're talking rubbish.Of course she's got the funds. She just re-mortgages the £45k deposit.Takes 15k out and leaves £30 in.

All debts paid off.
Her mortgage is now only £340 plus the £15k over 25 years(she's only just taken the mortgage out a year ago).
I guess that would bring it up to about £440.

She WANTS to pay her debts off.

Frankly

DorisTrousers

A typical IVA case will take longer than that to set up, but if you are unsure then you can check the online Insolvency Register, and search for your friends details.

You can withdraw from an IVA proposal at any time up to the creditors meeting, so you do need to establish exactly where she is in the process.

Taking equity may prove trickier than you imagine though, you have to factor in credit rating, loan to value and affordability criteria, which may prove to be a real stumbling block. Also, it is rarely a good idea to replace unsecured debts with secured ones, so that needs careful thought as well.