64k unsecured debt as homeowner. Terrified

sourcrates

Full and final IVA`s are rare, on the face of it, with you being unemployed, you may have good reason for your creditors to accept what you are proposing, but 15k on a 64k debt would mean very little in the way of return, especially when you take into account the IP`s fees will swallow most of that lump sum.

The IP`s fees will be around the 6k mark, there will be other costs too, the amount left to disburse to your creditors would be in the region of around 7k possibly, and you have to consider the fact that they could make more or equal to that by simply selling your debts and writing the rest off to tax.

I would say that was a non starter, see how others feel about it, but I would say my initial advice would still stand, by informing them of your circumstances, you can avoid the worst of the collection activity and the threat of possible legal action, wouldn`t worry about defaults, as they will happen in due course anyway.

Ruralkarl

https://forums.moneysavingexpert.com/discussion/comment/82173715#Comment_82173715

yeah I think the IVA idea may be dead in the water. My main concern with even proposing it was a risk to the help to buy loan due to the clause in the contract.

I think I will do as you said, is it better to contact them as you mentioned or just go non contact until after a default?

I’m hoping to be well enough to start some casual supply work after Christmas and then build up to looking for a full time position later in the year. So could start a dmp then

ManyWays

What is the problem you see with a full and final IVA? If this is accepted by your creditors, how is your house at risk? It looks like a good option for you if stepchange can get it approved.

Can you copy in here he clause you feel is a problem?

Stepchange's fees are unlikely to be more than 5k, so 10k upfront on 64k may sound a lot better to your creditors than a DMP with someone who is unemployed.

Ruralkarl

https://forums.moneysavingexpert.com/discussion/comment/82173813#Comment_82173813

in the help to buy loan terms and conditions it states they can trigger a full recall of the help to buy loan if you enter insolvency.

I think it’s one to discuss in depth with the stepchange drafting team when they finally call me back. I think moving away from it is also my tired brain looking for problems that may not exist.

Although I’ve only just started posting on here I’ve been stressing heavily about this for over a month since realising that my self employed business was in dire straits. I’ve since closed that down fully but the first couple of weeks were horrendous, I lost 2 stone in 3 weeks as I couldn’t eat anything, and anything I did I would just vomit back up and had to get sleep aids prescribed.

I’m feeling a lot better now, it’s just early days and I’m still trying to wrap my head around everything to make sure I’m protecting my family whilst dealing with this horror show

ManyWays

I agree you should discuss it with the Stepchange team. That clause doesn't say it WILL happen, just that it CAN happen. I can not think why they would want to do it in an IVA, where the mortgage/house is unaffected. And this would be even less likely with s single upfront payment IVA.

Stepchange may well have seen IVAs with a Help To Buy before.

RAS

In the short term, try to concentrate on getting your living costs down. If you can't work, there may be days/evenings when you could walk to a supermarket and look for heavily discounted foods? Or batch cook fridge soup?

Check how much you can save on petrol by combining journeys?

You all need an SOA that you can live with within your actual budget. And hopefully save a bit in case the cooker packs up.

Another small thing might be to look at what is no longer used? That might be for a car boot sale in the spring but sorting takes time.

Ruralkarl

https://forums.moneysavingexpert.com/discussion/comment/82174450#Comment_82174450

I would love to try and get it down. But almost all of these are fixed costs.

300 a month for a family of 4 is already doing discount shops and batch cooking on food, complicated by the fact my youngest has a wheat allergy so all of her food costs a fortune

RAS

I wasn't suggesting £300 was high for food, it's probably too low. More that you might find the good value items at a low cost, perhaps to boost protein, and fruit and veg and provide variety.

It may be worth trying Sky etc. If they know you're in trouble they may allow you to reduce your bundle, but watch for "termination" fees.

And it may be worth double checking if you can get additional benefits? Sometimes difficult if you've been self-employed, but turn2us might be worth looking. Eligibility might click in after some months on UC.

And checking if you have any local facilities that offer support? I know many employers now expect electronic applications, but for those needing paper ones, our local libraries will print some for free. Or there may be reduced offers for children with parents on UC?

ManyWays

300 a month for a family of 4 is WAY too low. Do not try to reduce this. A minimum budget would be allowing at least twice that amount and a debt adviser would not be surprised at a lot more.

Ruralkarl

https://forums.moneysavingexpert.com/discussion/comment/82174534#Comment_82174534

update:

Had a NOSIA from Zopa today, straight into the spam folder…..

also have been accepted by the stepchange drafting team to look at the full and final IVA. It might be a massive dream scenario but it’s one worth investigating so long as my help to buy stays safe, now have their direct number so I’ll give them a call in the morning