IVA and mortgage.

DEBT_23

not too sure what i do at the moment but if i was to go down the IVA route would it affect my mortgage when my fixed deal ends in 02/2009?
if so how? higher rates or my lender refusing to lend to me?


total mess my life is in, if only i knew best way of clearing my stupid debt..

GeorgeUK

If you were in an IVA, you probably wouldn't be able to go to another company to get a remortgage. You would be stuck with whoever you are with and at whatever rate they put your on. That's one of the problems with the IVA - if all your creditors don't agree to a reduction in payment so that you can cover the new mortgage payments, it may push you towards bankrupcy.

Have you posted up a SOA anywhere yet?
This format is quite handy for working out what you can afford and may allow us to see if there is anywhere you can make savings.
http://www.makesenseofcards.com/soacalc.html

DEBT_23

SoA
Income -£1200

outgoing-
404 mortgage
120 secured loan
20 tv/internet
65 council tax
60 Gas and Elec
13 water
14 tv licence
80 food
20 petfood/insurance
24 building and contents
6 life insurance
70 car insurance
50 petrol ** edited
30 car tax/service *

total -976
surplus- 224

debt outstanding ( from 5 years ago)
3000 halifax credit card
3000 halifax credit card
7500 halifax personal loan
4200 natwest personal loan

the DCA I recieve letters from have all the debt of halifax do you think they would allow me to arrange a payment plan with them?

the DCA in question is chase or robinson, way and co LTD

** edited

Shineyhappy

I can see car insurance but no petrol, servicing or tax allowances?

Do you have a spare bedroom you could rent out for some extra cash?

Sorry IVAs and DCAs arent my strong point.

DEBT_23

i have a spare bedroom yes tho i dont want to rent out to strangers, i work shifts and wouldnt like to share my home with someone.. tho i understand its extra money.
i do overtime each month usually adds between £200 -£1000 to my pay packet each month depending how many contract hours i choose to do.

GeorgeUK

WOAAAAH there.

Do you know when the last payment on the debt was made?

A debt will become statute barred after 6 years (5 in Scotland) if no payment has been made and no written acknowledgement of the debt. Do you know the exact date of the last payment made towards the debt?

DEBT_23

no i dont how will i find out when it was? i think it has only been 3 years or 3.5 since i last made a payment. would experian show when it was last payed?

GeorgeUK

Unfortunately not - you could request a Subject Access Request from Halifax, but if it's only been about 3-3.5 years then it definately won't be statute barred. I thought you meant payments hadn't been made for 5 years, not that the debt was about 5 years old

Have you tried reclaiming any bank charges or CC charges (not restricted by the current test case)

DEBT_23

i applied for my bank charges about 18months ago. i got a letter from my bank saying that it was all still on hold . i have heard on the news peoples reclaims are still on hold tho im not expecting to get them back

GeorgeUK

Yes, the bank charges are on hold until the test case is over.
OFT won the case, but the bankns have appealed so could take a while yet.

CreditCard charges aren't part of the test case so you should be able to claim these if you have any.

I'd do the CCA request and ask for notice of assignment and statement of account too. All it will cost you is £1 and it may save you quite a bit if the documents are not in order. If they do have the CCA and it is all correct, then you can arrange a repayment plan to hopefully clear the debt.

Have a read of this thread http://forums.moneysavingexpert.com/showthread.html?t=767025
Quite a few people are doing this with varying success. kel123 in particular.

10past6

I'm on a DMP, I've done a huge amount of research into IVA, I'm lucky enough in that I'm one of the few people who actually qualify for an IVA.

In view of that, I made an IVA application, I'm almost at completion stage for my IVA to commence, however, a few weeks ago I watched the money proogramme on BBC2, numerous customers were on stating they were experiencing huge increases in their mortgage after coming of their fixed deal, even though they had a perfect credit rating.

Based on that, I looked into how my mortgage would be affected as my deal is due to finish in 2009.

As I'm on a DMP, my credit rating is alread trashed, therefore there's every possibility my mortgage could increase by several hundred £'s, in view of that, I've decided to pull out of the IVA, I'm going to remain on my DMP until I remortgage next year.

I'm concerned about creditors' / DCA's obtaining a charging order whilst I'm on a DMP, but I'll have to cross that bridge as and when it happens.