Considering IVA

dalip

Yes totally agree with fermi. Oh and i tried to do an IVA with one of those factories(ignorance:o )which all went t**ts up when they discovered oh did not have enough debt to do one and i did not earn enough to pay their cut and my creditors. At no time until then did they reccomend bc even though all our debt was unsecured,we had no assets and lived in rented accomadation. Then all of a sudden they said bc was my best option:mad: .

10past6

Hi folks

Thanks for all the support and advice.

Choosing whether an IVA is right for us is a very difficult decision to make, I've read Martins' advice and not sure what to do for the best, this is our (me & oh) situation, between 10 creditors, I'm embarrassed to disclose this, we owe £91,500 in unsecured debts, something we are not proud of, whilst we take full responsibility for our own actions, we got into this mess by having consolidation loan, after consolidation loan.

All the debts above are unsecured, we do have our own property which is a joint mortgage, and thankfully our mortgage and utility bills are all up to date, regarding equity, we have nowhere near enough equity within the property to clear the above debts.

We've been on a DMP with Pay plan for 4 months,even at this early stage with Pay plan, we're still receiving grief from some creditors.

I've mentioned the advice and support offered, and I genuinely offer my thanks to you all.

debt_doctor

Hi,

How much do you pay to the DMP each month, and how much equity do you have ?

DD

10past6

debt_doctor wrote: »

Hi,

How much do you pay to the DMP each month, and how much equity do you have ?

DD

Hi DD

We pay £535.00 on our DMP, and I would guess we have around £30.000 in equity, but that's a conservative guess in today's climate.

If I can condense those creditors down, of the 10 creditors, I have an O/D & CC with 1 company, my partner has an O/D and loan with 1 company, we both have an individual loan with 1 company.

Scarlett.1974

Hi 10p6,

I can only echo the advice you've already been given and that's to definitely get further advice about this. Call CCCS as soon as you can; as fermi has said they will only recommend an IVA if it's the best thing for YOU and not for them.

Payplan recommended IVA for me and H, despite that fact that 1. H isn't working and 2. we were in huge negative equity in our house and this was highly unlikely to change for a long time, so we'd never have been in the position to be able to re-mortgage after the 5 years So, in the nicest possibly way, I would be taking Payplan's advice with a healthy dose of salt and getting a 2nd opinion.

Best of luck

debt_doctor

Ok so unless you can get a friend / family member to raise £ 30000 then you would almost certainly lose the house in BR. I dont know how you feel about the house or if the mort payments are affordable.

In an IVA you would probably pay £ 535 per mth for 5 years = £ 32,100 perhaps £ 25,000 would go to creditors plus in the final year you would be required to raise £ 22500 by way of re mortgage making a retun to creditors of £ 47500, approx 50%.

In BR the house would be lost, a rough guess of £ 250 per month in an IPA for 3 years, £ 30,000 + £ 9000 + fee's £ 485 = £ 39,485.

Have you considered selling your house and offering the proceeds to creditors as full and final of around 30% or a full and final IVA from house sale without monthly payments ?

All depends on how you feel about the house.

Best

DD

10past6

Thanks DD

OK, the house is our home, we have no interest in selling or moving, if it meant losing the house under BR, then BR is NOT an option.

Regards trying to raise £30.000 is near on impossible.

DD, your step by step help is of great assistance to me, which I'm greatful to you for.

Can I just point out, due to personal reasons, where we live now, has been the most psychologically secure we have ever felt, (following years of NHS psychological treatment) which is why we have no intention of moving or selling, to lose our home would create further added stress.

10past6

Scarlett.1974 wrote: »

Hi 10p6,

I can only echo the advice you've already been given and that's to definitely get further advice about this. Call CCCS as soon as you can; as fermi has said they will only recommend an IVA if it's the best thing for YOU and not for them.

Payplan recommended IVA for me and H, despite that fact that 1. H isn't working and 2. we were in huge negative equity in our house and this was highly unlikely to change for a long time, so we'd never have been in the position to be able to re-mortgage after the 5 years So, in the nicest possibly way, I would be taking Payplan's advice with a healthy dose of salt and getting a 2nd opinion.

Best of luck

Thanks Scarlett.

Seeking a 2nd opinion has been part of the best advice on this thread so far, and I thank you for your input.

debt_doctor

OK,

With what you say then an IVA seems right for you, and its very rare I say that ! The £ 22500 I mentioned in the final year is arranged through an associate of Paylan who will agree to lend you the money subject to satisfactory conduct of your IVA.
You wouild need to budget for this extra borrowing in 5 yrs time.

You say that there seems to be a charging order looming from a creditor, if you go for an IVA then act fast to avoid the charging order.

DD

10past6

debt_doctor wrote: »

OK,

With what you say then an IVA seems right for you, and its very rare I say that ! The £ 22500 I mentioned in the final year is arranged through an associate of Paylan who will agree to lend you the money subject to satisfactory conduct of your IVA.
You wouild need to budget for this extra borrowing in 5 yrs time.

You say that there seems to be a charging order looming from a creditor, if you go for an IVA then act fast to avoid the charging order.

DD

Hi DD

I value your opinion, and take on board everything you have said, and recommended.

If Pay plan recommend I do an IVA, with your advice combined, would I also need to seek further advice from another source?

As regards a creditor seeking a charging order, this is for one of my debts at £7.500, so far all creditors seem to be going through the standard process of issuing letters re our debts.

At this stage, we have not received any CCJ's or court action from any creditors, all correspondence so far seems to be system generated letters.

As you have recommended an IVA, I now need to see how this works, am I correct in thinking my home is NOT at risk providing I keep up with whatever has been agreed within the IVA process?

This whole situation has been stressful to say the least, albeit self inflicted, however, your explanation of the options available has reduced my stress level a little, and although I keep thanking you for your assistance, without people like you giving up your time and dedication, god knows what kind of situation some would be in.