Chances of IVA being accepted?

mrcactus

Hi all.

I am contacting a company tomorrow to have them look over my finances to see if an IVA is right for me. I've been trying to do lots of research myself on it to see if it is something I should consider.

As you can see by my list of debts further down that I do have a lot of pay day loans. I used them to pay off each other, then before I knew it im in this mess, and no one to blame but myself.

I have contacted the payday loan companies to ask to go on payment plans, and all of them except Fernovo and 118 Money have been helpful. Even still with those payments reduced, combined with my bank loan payments and credit card payments, it is eating at all of my wages each month.

I am supposed to pay my parents £300 rent each month, as only one of my parents is working and they aren't exactly rich so I understand that this money I pay them goes towards rent, council tax etc. I haven't paid them this for 3 months now which prompted me to come clean about my situation.

This is what I owe in total:
LLOYDS LOAN £3,938.23 (£134.70 p/m)
LLOYDS CREDIT CARD £982.54 (£40 p/m) (defaulted and am on informal payment arrangement)
CAPITAL ONE £175.35 (£6.50 p/m)
CAPITAL ONE PLATINUM £182.74 (£6.50 p/m)
VANQUIS £471.25 (£25 p/m)
AQUA £1,421.77 (£60-£70 p/m)
BARCLAYCARD £794.63 (£25 p/m)
VERY £494.06 (£25-£35 p/m)
PHONEBILL £245.00 remaining on contract (£35 p/m)
ARGOS £303.11 (£13 p/m)
SAFETY NET CREDIT £587.63 (£30 p/m)
118 MONEY £1,042.02 (£115.78 p/m)
UNCLE BUCK £271.20 (£35 p/m)
MYJAR £117.70 (£25 p/m)
LENDING STREAM £437.30 (£109 p/m)
POUNDS TO POCKET £45.92 (one payment left)
FERRATUM £121.26 (£50 p/m)
PIGGY BANK £61.40 (£45 p/m)
PEACHY £149.54 (£50 p/m)
FERNOVO £585.08 (£65 p/m)

So my minimum payments are totalling around £900 p/m now, leaving me with £100 odd left as I get paid after tax usually between £1000 - £1050 per month. So if I give that £100 odd to my parents then I have nothing left for myself. Nothing to buy clothes with, nothing to put away for Christmas etc. I gave up smoking a while back so spend around £40 per month on vaping supplies as before I was spending £400 a month on cigarettes (I know some people see vaping as smoking but £400 to £40 is a huge success in my eyes)

I don't drink or socialise much outside of work so I save money there I suppose :rotfl:

Sometimes just to save money, I only have something to eat in the evening when I get back from work.

So anyway, back to my original point. Does anyone think an IVA is right for me? It's alot of creditors to deal with individually as well. May be worth pointing out that I am currently up to date (exception of the defaulted credit card) on all payments, purely as I borrow off one lender to pay the other....a very quick descent into chaos I might add.

Should I cancel all CPA's with my bank before I call this company to discuss? I have a payment coming out in a weeks time but have nothing left in the bank. Or should I wait until the company advises me?

Please, any advice would be great. I like this forum as the people on here are 99.9% genuine and helpful, I just hate the comments I get from friends and co-workers like "just don't pay the debts, what's the worst that can happen?" or "there must be something you can do to get yourself out of this mess".

Thanks in advance! Sorry for the long post

sourcrates

Hi,

A debt relief order would most likely suit you better, IVA’s are really for people with massive debts who can’t go bankrupt for some reason, don’t be using fee charging debt management companies either.

Ring stepchange or one of the other free debt advice agencies in my signature, better still check out their website first, stepchange have a debt remedy tool, you put in your details, it pops out a solution.

An IVA would not be suitable for you with such small debts, do your research carefully and get as much info on your options as possible.

I would stop paying everyone and let them know your seeking advice on your situation.

Years_of_debt

You have lots of creditors but not much actual debt.
Don’t IVA that not worth it.
DRO - if you want to clear it all.
If you don’t want your credit rating to be shot, consider paying it back as most of them are low amounts of £100/£200 In 3 months all of those bottom 6 are gone.
It looks daunting as you have so many, but most of them are for small amounts and with 3-6 months of continuous payment will be gone.
But if not get a DRO to clear them all off.
Or DMP if you want to pay them back.

mrcactus

Thanks for the replies Sourcrates and Years of debt.

I filled out Stepchanges' debt remedy tool and DMP and IVA were the two suggested solutions for me. I considered a DMP but I thought it would be really difficult to get it put in place as I have lots of creditors and would likely to start to receive phone calls etc. That's why I was looking at an IVA because as long as the proposal was accepted by my creditors, I would be 'legally protected' and then just make one single payment to the IVA company....or maybe it was just looking like the easy way out for me I don't know haha.

Looking at the DRO's, it says a person has to be on a low income? I earn around £1k per month after tax, but the minimum payments I have to make to all creditors take up the majority of that. Add the rent I have to pay my parents, then it's pretty much all gone.

Maybe I'll give stepchange a call and see what they suggest. Don't really want to make any snap decisions then regret it further down the line. Thanks again peeps

DorisTrousers

Make your own mind up, it isn't for me, or anyone else on here, to tell you what to do.

For a DRO you have to have less than £50 left BEFORE you make a payment to debts, not after. If you have £951 of legitimate expenditure before debt repayments, then you qualify.

An IVA and a DMP will ask for what you can afford, again legitimately, so a lot depends on what you can actually afford. It always amazes me on here that anyone gives advice or opinions before seeing a SOA. Rule of thumb between IVA and DMP is that if it is going to take longer than 10 years, Stepchange will recommend IVA, less than 10 and they will recommend DMP. Creditors, conversely, are more than ok with an IVA if a DMP is going to take longer than 6 years.

There is always the option of a full blown BR as well, and there can be something to be said there. As ever though, make your own mind up.

mrcactus

I have decided to go with an IVA. I have signed all the relevant documents and am currently awaiting the creditors decision. I get paid end of next week and that's when all the minimum payments on all my debts would be due. The minimum payments were taking up nearly all of my wages and as it's been so long since I've paid my parents rent, I will have to start paying them £200(ish) per month so there would be no way I could pay that and meet all the minimum payments on these.

I have changed bank accounts so my wages don't get touched by the creditors. Should I call them all up and ask them to freeze my accounts until I know the outcome of if I am on the IVA or not? I have already called LLoyds to tell them why my recent loan payment bounced, but they just said wait until it goes to the Central Collections Department and then have a chat with them.

The Insolvency company were giving me lots and lots of information that was so overwhelming, I may have missed crucial bits they were telling me. Obviously, if I miss next weeks payments then my bank account will go further into arrears, along with the debts with all the companies and then my overall debt would increase so don;t really know how the IVA would work then (if I'm accepted at all for it).

Anyone in an IVA or successfully completed one? I'm not worried about my credit rating at the moment to be honest - I just want to clear the debts and start again. If it takes me 5 years, then so be it.

TIA.

PrettyKittyKat

Don't make the payments. If this increases the debts to be included on the IVA slightly this is ok and totally normal. Creditors are given time to confirm the actual balances of the debts after the IVA is accepted. The only time it is a problem is if they are significantly different (usually 10% increase overall).

mrcactus

So I emailed all of my pay day loan lenders to inform them that I had submitted an application for an IVA and they have all placed my accounts on hold for 30 days ( which is good ). But they've all asked if my Insolvency Practitioner can get in contact with them to work with them/discuss my accounts going forward.

I'm a bit confused as I had an email from my IP today saying:

"Dear ********

This is a reminder that your meeting of creditors is due on the 22/10/18 at 11am.

It is important that you are available for us to speak to you about the outcome of your Meeting of Creditors.

If you are unable to receive a call, please confirm an alternative time that day.

Regards"

So is this my MoC and then my IP will discuss the outcome or has the MoC already happened and they want to discuss it next week? I'm a little confused as to how this process works. Thanks

PrettyKittyKat

The meeting of creditors is on 22/10/18, it says so in the email. The reason they need you free that day to discuss the outcome is incase the creditors put any modifications on your IVA that they need to discuss with you, and of course if it's accepted to confirm what happens next.

Are the payday loan companies listed on your IVA? They will have received the IVA proposal if so, so the email response you have received will be templated no doubt.

mrcactus

PrettyKittyKat wrote: »

The meeting of creditors is on 22/10/18, it says so in the email. The reason they need you free that day to discuss the outcome is incase the creditors put any modifications on your IVA that they need to discuss with you, and of course if it's accepted to confirm what happens next.

Are the payday loan companies listed on your IVA? They will have received the IVA proposal if so, so the email response you have received will be templated no doubt.

Thanks for your reply PrettyKittyKat.

Yes, all my payday loan lenders are listed in the IVA, I double checked the IVA proposal as well before I signed it...strange. Just had another email from another payday loan lender saying:

"We have acknowledged that you have enrolled with an IVA. Please be informed that we have not received the documents from your debt adviser. So, we request that you please ask your debt adviser to send us a letter from you authorising them to work with us, along with required documents within 30 days.

As soon as we have received these documents, we will work with your adviser to settle your loan."

All replies from the payday lenders have pretty much said the same thing. It's like the IVA proposal hasn't even reached them :eek:

Like you said, maybe it's all templated responses and probably what they are required to send out. I did also read that with some lenders etc, it can take a while for the certain departments within the organisation to be aware that a customer is on an IVA/enrolled into one? I don't know haha.

All new to this IVA stuff so I'm just paranoid something isn't going to be done properly and it will all fall apart :rotfl:

PrettyKittyKat

It's likely their internal departments are still processing the proposals. However you may want to email your IVA company to say which companies have contacted them and said that they are yet to receive the proposal so you just wanted to make them aware. Or you can reply to the payday lenders to say the meeting of creditors is on 22/10/18 my IVA company is X and their contact number is X, please contact them for a copy of the proposal if you have not received this.

You have done your bit, whether they claim they received it or not they are bound by it anyway if it is accepted.