IVA - Barclays is my biggest debt

snowy789_2

Hi
I've contact Payplan regarding my finances, and they have recommended me doing an IVA, as DMP would take me 12 years to pay off!
Abit dubious about going down this route, but 5 years is better than 12 !!

My debts have built up mainly due to my ex, and his spending habbits - he couldnt get credit, so we got them in my name. We've split - im left with the debt!

My question is, my biggest debt is Barclays - how likely are they to accept my IVA application? Its really upset me as i took a loan out about 18 months ago for £12,500 - paying £309 a month back (over 84 month - with the payment protection). My balance with them is currently over £20k. Its really upset me. I've tried to get the payment protection off - but they want me to take a new loan out with an APR of something stupid like 20.9%.:mad:

Can anyone help?

Thanks

dancingfairy

Hi. I don't know how likely Barclays are or aren't to accept your proposal. However you could pop up an SOA an we can see if we can save you some money to pay back your debts. Also hopefully someone more knowledgable than me will be along shortly.

Good Luck

df

Lucy1982_2

Hi

I took out a loan for my ex (We were getting married so it seemed like a good idea :rolleyes: ) and when we split 3 months before the wedding I was left with the debt :mad:

But you are in the right place to sort yourself out. Have a look at the sticky thread called first time posters and it will show you how to give us the best info so we can help you.

Good luck and you are not alone

snowy789_2

My outgoings are as follows:
£100.00 Food
£150.00 Petrol
£394.00 Mortgage
£72.00 Maintenance/Gas/Electric/Water/Buildings Insurance
£60.00 Council Tax
£11.00 TV licence
£20.00 Contents Insurance
£38.00 Car Insurance
£10.50 Phone Line
£40.00 Mobile Phone
£10.00 Car Tax (£120ish a year)
£905.50 Total

Debts
Barclaycard £2459.00 (£55.00 a month)
Alliance & Lecister Loan £1236.30 (£123.63)
Barclay Loan!!! £20,703.00 (£309.30)
Dorothy Perkins £788.00 (£31.52)
MBNA £3028.00 (£65.00)
MBNA £3528.00 (£82.00)
Overdraft £410.00
Totals £32,152.00 (£666.45)

I currently pick up about £1242 after tax.
Any help?

CCCS_Emily

Hello Snowy789,

Your creditors will be looking to see how many pence they will be getting back for every pound that you owe them, and different creditors accept different amounts. When your Insolvency Practioner works out how much you can afford, and therefore how much the creditors will be getting back, they should know the percentages different creditors go for, and therefore be able judge the feasability of your IVA being accepted.

IVAs are individual so what a creditor accepted for one person may differ from what they accept from you. Sorry to be vague, but your IP is the best person to ask.

You are not tied into an IVA until everything is agreed and signed. You need to be happy with the arrangement as much as your creditors are. Most importantly you need to make sure that you are happy with the budget and feel you can sustain it for 5 years. It needs to be realistic from your point of view as much the creditors.

Good luck

CLAPTON

How much is your property worth and how much is the mortgage?

snowy789_2

Thanks for advise.

I've only just bought my property. Its worth £70k. I put a 5% deposit down, but with the fee's etc they add on i probably owe about £68k on it - not enough to remortgage with.

At least i realise now i got problems with my finances and am trying to sort it all out. Just need to win the lottery really!

CLAPTON

At the moment and depending upon the cost of the IVA (lets say £6-8k) then the return to the creditors will be about 40-44% which is reasonable. .. although there are no certainties.

However, I dont think your SOA is realistic for 5 years ... however you present it to your creditors (and it may need some disguising) you will need to spend some money on e.g. clothes, car repairs / servicing /MOT etc, socialising (you can't stay in for 5 years), house emergency fund (appliance brerakdown, boiler repair or whatever), something for xmas/presents amnd 100 for food is quite modest too. CCCS /Payplan can help you with 'acceptable' figures for allowable expenses. Do not be tempted to cut down on theses because a lot of IVAs fail because people are too keen to get the IVA accepted but then find the budget just isn't robust enough for 5 years... just think of all the things that can go wrong over that time (car packing up completely maybe).
Try to work out all the things you need to spend including all those yearly / one offs that crop up in real life.