on way to IVA ?

MURPHY29

Hello All, After a few years of trying to manage my credit card debts, I finally know I need drastic help. I am considering an IVA
I am not sure if I will be allowed one, is there a limit for the amount of debt ? Is there a % of your debt that you have to pay monthly - what if you can only afford a minimal monthly payment, I know I will need advice to find out how it actually works.
I think I am 2 pay dates (months) away from default , at the moment I have never missed a payment but I can't see that continuing, as my employment may now be at risk.
I am terrified of letting everyone down, I have been trying to keep the payments going and moving money around with 0% deals etc. but I am not being offered any of those now and the interest alone is a killer.
I have joint bank accounts with OH
Our main current account is always overdrawn with LLoyds - I have a LLoyds credit card debt in my name
I also am named joint on a LLoyds account with 1 other which is a family Christmas savings account with 7 family members paying in monthly, it's not a huge amount saved in there but what would happen if I default on my main bank account and my credit card - can the bank take their money from these accounts would all these people lose their savings ?


I am also named on my mother's bank account however this is a different bank - and is all her money!
My OH also has credit card with LLoyds but he is managing his, he does not know the extent of my debt
We also have a joint mortgage
I am so disappointed, there have been many contributors to my situation, however without going into detail I am to blame, it is my debt and my family do not deserve this


I am not sleeping with worry, everything churns around in my head at 3am I feel very pathetic and so very sad, I could have had the best life I have such good people around me and I have let them all down. Sorry if this is too depressing but thank you for reading x

National_Debtline

Hi Murphy


I'm sorry to hear about your situation, but rest assured you are not alone. Many people have been in similar situations and you'll find lots of support on the forum. It's too soon to say whether an IVA will be a suitable option, the first thing you need to do is complete a statement of affairs (SOA)
http://www.stoozing.com/calculator/soa.php


If you post it back on the forum we can be more specific on your options. You'll need to format it for MSE. You can also get impartial advice from one of the free debt advice agencies.


With regards to your banking situation, you must only bank somewhere you have no debt. This includes not having joint accounts somewhere that you owe money. You could consider having your name removed from the account, rather than everyone having to open a new account elsewhere if that's easier. I hope all goes well.


Susie
@natdebtline

fatbelly

MURPHY29 wrote: »

Hello All, After a few years of trying to manage my credit card debts, I finally know I need drastic help. I am considering an IVA
I am not sure if I will be allowed one, is there a limit for the amount of debt ? Is there a % of your debt that you have to pay monthly - what if you can only afford a minimal monthly payment, I know I will need advice to find out how it actually works.
I think I am 2 pay dates (months) away from default , at the moment I have never missed a payment but I can't see that continuing, as my employment may now be at risk.
I am terrified of letting everyone down, I have been trying to keep the payments going and moving money around with 0% deals etc. but I am not being offered any of those now and the interest alone is a killer.
I have joint bank accounts with OH
Our main current account is always overdrawn with LLoyds - I have a LLoyds credit card debt in my name
I also am named joint on a LLoyds account with 1 other which is a family Christmas savings account with 7 family members paying in monthly, it's not a huge amount saved in there but what would happen if I default on my main bank account and my credit card - can the bank take their money from these accounts would all these people lose their savings ?


I am also named on my mother's bank account however this is a different bank - and is all her money!
My OH also has credit card with LLoyds but he is managing his, he does not know the extent of my debt
We also have a joint mortgage
I am so disappointed, there have been many contributors to my situation, however without going into detail I am to blame, it is my debt and my family do not deserve this


I am not sleeping with worry, everything churns around in my head at 3am I feel very pathetic and so very sad, I could have had the best life I have such good people around me and I have let them all down. Sorry if this is too depressing but thank you for reading x

It's worrying that you are considering an IVA yet admit you do not know how they work - that is a recipe for disaster.

I work at CAB and am now seeing people who have been missold these things and got into problems, on a weekly basis.

It is true that an IVA would be the only form of insolvency you should consider if you are a homeowner with equity but do you really need insolvency?

Why not complete an soa for us and then we have some detail on which to advise.

You should not feel that you are letting people down. I see people with problem debt on a daily basis and everyone on this forum will understand the situation you are in, many of them having been (or still being) in the same situation.

sourcrates

I too would urge caution here, you are a long way off any action been taken against you, you have plenty of time to whey up your options here.

An IVA may be appropriate, but you must research the subject like you would any major decision, lose all thought of letting folk down, things happen in life, as I know only too well, you need a clear and business like head to take this forward.

You have not said how much you owe, so we need to know that first of all, then complete a statement of affairs so we can see what may be suitable for you.

Link here :
http://www.stoozing.com/calculator/soa.php

MURPHY29

Thank you for your replies,


I am looking at my soa now and will post here soon,
I agree I need to approach this without haste
I had completed an online remedy and it came back with IVA as a solution
I think my debt total is 42k
Can hardly believe I have just typed that

MURPHY29

HERE GOES...
mbna credit card is 4.9% until 2022
the others I'm not sure of




Statement of Affairs and Personal Balance Sheet[/b]
Household Information
Number of adults in household........... 4
Number of children in household.........
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1295
Partners monthly income after tax....... 1600
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2895
Monthly Expense Details
Mortgage................................ 660
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 151
Electricity............................. 125
Gas..................................... 0
Oil..................................... 0
Water rates............................. 50
Telephone (land line)................... 57
Mobile phone............................ 95
TV Licence.............................. 13
Satellite/Cable TV...................... 24
Internet Services....................... 0
Groceries etc. ......................... 350
Clothing................................ 50
Petrol/diesel........................... 175
Road tax................................ 31
Car Insurance........................... 42
Car maintenance (including MOT)......... 20
Car parking............................. 5
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 20
Buildings insurance..................... 15
Contents insurance...................... 0
Life assurance ......................... 45
Other insurance......................... 20
Presents (birthday, christmas etc)...... 40
Haircuts................................ 30
Entertainment........................... 100
Holiday................................. 200
Emergency fund.......................... 25
Total monthly expenses.................. 2363

Assets
Cash.................................... 0
House value (Gross)..................... 185000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 185000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 130000...(660)......0
Total secured & HP debts...... 130000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
MS CREDIT CARD.................8833......221.......0
mbna credit card...............14852.....253.......4.9
newday credit card.............2195......23........0
LLOYDS overdraft...............2500......0.........0
LTSB c.card....................11786.....218.......0
barclaycard c,card.............3654......83........0
next store card................1045......53........0
Total unsecured debts..........44865.....851.......-

Monthly Budget Summary
Total monthly income.................... 2,895
Expenses (including HP & secured debts). 2,363
Available for debt repayments........... 532
Monthly UNsecured debt repayments....... 851
Amount short for making debt repayments. -319
Personal Balance Sheet Summary
Total assets (things you own)........... 185,000
Total HP & Secured debt................. -130,000
Total Unsecured debt.................... -44,865
Net Assets.............................. 10,135
Created using the SOA

anna_1977

MURPHY29 wrote: »

HERE GOES...
mbna credit card is 4.9% until 2022
the others I'm not sure of




Statement of Affairs and Personal Balance Sheet[/b]
Household Information
Number of adults in household........... 4 - is this 2 adults & 2 older kids?
Number of children in household.........
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1295
Partners monthly income after tax....... 1600
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2895
Monthly Expense Details
Mortgage................................ 660
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 151have you spread over 12 months instead of standard 10?)
Electricity............................. 125
Gas..................................... 0
Oil..................................... 0
Water rates............................. 50
Telephone (land line)................... 57 this is very high - if not in contract change immediately
Mobile phone............................ 95how many phones is this for? again very high
TV Licence.............................. 13
Satellite/Cable TV...................... 24if not in contract cancel - luxury
Internet Services....................... 0
Groceries etc. ......................... 350I'm sure this could be reduced, someone else will advise on this
Clothing................................ 50
Petrol/diesel........................... 175essential trips to work only?
Road tax................................ 31
Car Insurance........................... 42
Car maintenance (including MOT)......... 20
Car parking............................. 5
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 20
Buildings insurance..................... 15
Contents insurance...................... 0I hope this is combined with building - it is an essential
Life assurance ......................... 45
Other insurance......................... 20
Presents (birthday, christmas etc)...... 40
Haircuts................................ 30
Entertainment........................... 100you can't afford this at the moment - cut it out or reduce significantly
Holiday................................. 200not affordable at the moment - cut out
Emergency fund.......................... 25
Total monthly expenses.................. 2363

Assets
Cash.................................... 0 if you're paying an EF of £25 there should be something in here
House value (Gross)..................... 185000
Shares and bonds........................ 0
Car(s).................................. 0you have 2 cars ? ?
Other assets............................ 0
Total Assets............................ 185000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 130000...(660)......0
Total secured & HP debts...... 130000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
MS CREDIT CARD.................8833......221.......0
mbna credit card...............14852.....253.......4.9
newday credit card.............2195......23........0
LLOYDS overdraft...............2500......0.........0
LTSB c.card....................11786.....218.......0
barclaycard c,card.............3654......83........0
next store card................1045......53........0
Total unsecured debts..........44865.....851.......-

Monthly Budget Summary
Total monthly income.................... 2,895
Expenses (including HP & secured debts). 2,363
Available for debt repayments........... 532
Monthly UNsecured debt repayments....... 851
Amount short for making debt repayments. -319


Personal Balance Sheet Summary
Total assets (things you own)........... 185,000
Total HP & Secured debt................. -130,000
Total Unsecured debt.................... -44,865
Net Assets.............................. 10,135
Created using the SOA

Please see my comments in red - you can save about £400 a month cutting out things like your holiday fund, reducing phones etc.....

Well done on facing but I think you've gone into panic mode with the IVA

Both fatbelly and sourcrates are amazingly knowledgeable and I am sure will come back with their comments shortly

Good luck

MURPHY29

Anna1977, thank you for reply and questions


2 adults 2 older kids - both students
Yes that council tax should be 126 over 12 months


in contract with BT until June and will change the landline then
we pay for 3 mobile phones me, hubby and youngest son


yes the home and contents are combined


I try to save the holiday and emergency fund but end up transferring it back into the overdraft on current account most months that's why there is no balance at the moment


Ah, I've missed off the HP on both cars, comes to £319 total monthly - OH pays both, however I wasn't thinking it should come out of his income at the top - not sure how I amend it now

anna_1977

Hey,

I would repost the SOA - I'm assuming you saved it on the website? Add in the extra HP payments. They really need to show to have a true reflection.

Do you mind me asking how old the kids are?

Well done for posting, it's a hard thing to do

MURPHY29

thanks I will change the soa


Not at all - 2 fab kids aged 21 and 18

MURPHY29

added the car payments


Statement of Affairs and Personal Balance Sheet[/b]
Household Information
Number of adults in household........... 2
Number of children in household......... 2 older
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1295
Partners monthly income after tax....... 1600
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2895
Monthly Expense Details
Mortgage................................ 660
Secured/HP loan repayments.............. 319
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 151
Electricity............................. 125
Gas..................................... 0
Oil..................................... 0
Water rates............................. 50
Telephone (land line)................... 57
Mobile phone............................ 95
TV Licence.............................. 13
Satellite/Cable TV...................... 24
Internet Services....................... 0
Groceries etc. ......................... 350
Clothing................................ 50
Petrol/diesel........................... 175
Road tax................................ 31
Car Insurance........................... 42
Car maintenance (including MOT)......... 20
Car parking............................. 5
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 20
Buildings insurance..................... 15
Contents insurance...................... 0
Life assurance ......................... 45
Other insurance......................... 20
Presents (birthday, christmas etc)...... 40
Haircuts................................ 30
Entertainment........................... 100
Holiday................................. 200
Emergency fund.......................... 25
Total monthly expenses.................. 2682

Assets
Cash.................................... 0
House value (Gross)..................... 185000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 185000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 130000...(660)......0
Hire Purchase (HP) debt ...... 15000....(229)......0<
HP van.........................3000.....(90).......0
Total secured & HP debts...... 148000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
MS CREDIT CARD.................8833......221.......18.9
mbna credit card...............14852.....253.......4.9
newday credit card.............2195......23........0
LLOYDS overdraft...............2500......0.........NaN
LTSB c.card....................11786.....218.......18
barclaycard c,card.............3654......83........18
next store card................1045......53........18
Total unsecured debts..........44865.....851.......-

Monthly Budget Summary
Total monthly income.................... 2,895
Expenses (including HP & secured debts). 2,682
Available for debt repayments........... 213
Monthly UNsecured debt repayments....... 851
Amount short for making debt repayments. -638
Personal Balance Sheet Summary
Total assets (things you own)........... 185,000
Total HP & Secured debt................. -148,000
Total Unsecured debt.................... -44,865
Net Assets.............................. -7,865
Created using the SOA calculator
Reproduced on Moneysavingexpert with permission, using other browser.[/font]