IVA? Need help please, can't sleep.

Meow

Hi,

I am considering an IVA, have read Martin’s guide so posting my SOA hoping you can advise.

We accepted a very low offer on our house (just covering the mortgage) and were ready to move out tomorrow and into rented to save money. Our buyer has just pulled out. Our mortgage payments are due to increase by a further £300 a month in August. I have arranged a payment break with the Halifax, we can use the money we save to cover the increase until early next year.

My debts are:

HSBC Personal Loan £11,500 (£267 a month)
HSBC Overdraft £1500 (about £20 interest) not in use
First Direct Overdraft £450 not in use
Alliance & Leicester Overdraft £400 (this is my current account)
Egg Credit Card £3500 (£72 a month)
Natwest Credit Card £4050 (£100 a month)
Halifax Credit Card £2000 (£50 a month)

I pay £600 for household bills and my partner helps me out but he isn’t exactly flush himself.

My other monthly bills are:
Petrol £125
Car Insurance £35 (including breakdown cover)
Pets £15
Mobile Phone £25

I take home £1350 a month. Despite earning more than I ever had I only have about £50 cash to see me through the month and if anything goes wrong I have no way of paying for it.

I called the National Debt Advice line and was sent a starter pack from Debt Free Direct. The cost of the IVA would be included in the monthly payments.

I would like to go for the IVA because I can’t cope anymore and it is just getting worse. First Direct have sent me a final notice letter, even though the overdraft is within the agreed limit and I have offered to pay £30 a month.

I have reduced debt where I can by shuffling but my credit rating has had it, I was advised to get a basic bank account before applying for the IVA but this has been refused as well.

My main concerns are two things:
1. How will it affect my partner? We have two joint accounts, one with an overdraft of £500 which we no longer use but is at the limit and £250 overdraft with the Alliance & Leicester which we use. If I default does it affect his credit rating?
2. I have read about the ‘right to offset’, I am worried that the Halifax may look to get the £2000 back for the credit card by adding it to the mortgage or cancelling the payment break.

I know you guys are busy and look at a lot of posts but I would appreciate your advice. I have hit a real low and I don’t know what to do. Please help! x

churchrat

bumpity bump:j:j:j:j:j

lisabell

Hi

Just wanted to reply will see if i can help at all i have just started on the process of an iva i am curently on a DMP.
So you are struggling now to regards of the mortgage if you are still looking at selling then that is fine but if not and your payments are going to be included and going up then this will be factored into the DMP.
So you wont need to worry about affording payments with an IVA all your home bills, mortgage C tax, etc... are priority so when you go through your pack they are the most important thing you dont have to worry about making the minimum payments on your cards when in the IVA.
When you have done your statement of affairs whatever is left after your bills and money to live off is what will be given to the IVA and that will be given to your creditors.
If you and your partner are linked then yeah it will affect his credit rating too me and my partner are both going in to ours.
Now one of my biggest debts of £32,000 is with Northern rock wo we also have our mortgage with now as far as i know they cant take your right to offset of you.
The only way at the end of an iva the creditors can get some more money of you is to get you to remortgage but what i will add is that if you have a secured loan on your property then they cannot take any equity in your house as that has to be seucred for your mortgage and your loan.
Hope i have helped a little but PM me if you have any other questions
Lisa

Tigger1983

Does your partner live with you? How much does he contribute a month?
Also, if you post a detailed SOA with all your outgoings individually (e.g. split gas, electric instead of bills) the nice bods on here will help you to reduce your outgoings. The way you have posted makes it difficult to see where things can be reduced.

Tig x

Meow

Thanks for replying.

My partner doesn’t have any debts and he is older than me, so we don’t want him in on the IVA, especially if we sell and have to pass credit checks to rent somewhere. He pays £1400 a month into our joint account and I pay £600. Total joint outgoings are below so you can see we are a bit short. My partner recently increased his payment by £200 a month but can’t afford any more. It’s depressing me because I can’t contribute any more.

Can I leave out the joint debts so that he is not affected? We could probably scrape together the cash to pay off the two joint overdrafts.

Mortgage

£1,440.00

Maintenance Charge

£17.00

Coucil Tax (Band E)

£220.00

Gas

£40.00

Water

£35.00

Electric

£60.00

Curry's appliance cover

£2.99

TV Licence

£11.71

Sky

£40.00

Phone & Broadband

£30.00

Life Insurance (boys)

£14.00

Life Insurnace (joint)

£54.61

Contents Insurance

£35.00

Income Protection

£130.00

Mortgage Protection

£60.00

Grocery

£300.00

Total

£2,490.31

We really overstretched ourselves with the mortgage, which was stupid I know, but we are stuck with it now unless we can sell.

We pay a lot for income protection but need this because we work for the same company and it may be sold later this year.

Thanks

tasha999

My OH and I are just starting an IVA with CCCSVA, they've been good so far.

I've got two loans with Northern Rock ~(which are included in my IVA) as well as my mortgage with them, I'm sure that only your bank (where your wages go in) has the right to offset, It certainly can't be added to your mortgage

I just got my account number and card for my "safe account", with Natwest ~ I've just noticed that you've got a credit card with them so they're not a choice for you.
I'm sure someone here can point you in the right direction. x

edit ~ I'm not sure an IVA would be the best option if your company is likely to be sold later! You'd need to have a steady income and be committed to the payments or you'd risk bankruptcy.

I think that all of your debts would need to be included, I don't know how this would affect your partner though.

Meow

Thanks for that. I should be ok if the company is sold. I have income & mortgage protection and other job offers. I guess I better check if the income protection would pay out IVA repayments if out of work?

Merlot

Will your mortgage protection and income protection start to pay out within days of redundancy or loss of income, or do you have a three/six month wait before it starts paying out, mine did, so it was no use nor ornament in real terms, its just a thought, especially if you get a job through a temp agency or get other employment quickly.

Meow

There is a 30 day excess, so it would pay out on day 61 of the claim. I would get a months notice tax free so I would just need to make sure I kept enough to one side to make 2 months IVA payments.

Merlot

Meow wrote: »

Thanks for replying.

My partner doesn’t have any debts and he is older than me, so we don’t want him in on the IVA, especially if we sell and have to pass credit checks to rent somewhere. He pays £1400 a month into our joint account and I pay £600. Total joint outgoings are below so you can see we are a bit short. My partner recently increased his payment by £200 a month but can’t afford any more. It’s depressing me because I can’t contribute any more.

Can I leave out the joint debts so that he is not affected? We could probably scrape together the cash to pay off the two joint overdrafts.

Mortgage

£1,440.00

Maintenance Charge

£17.00

Coucil Tax (Band E)

£220.00

Gas

£40.00

Water

£35.00

Electric

£60.00

Curry's appliance cover - GET RID OF THIS

£2.99

TV Licence

£11.71

Sky - GET RID OF THIS

£40.00

Phone & Broadband

£30.00

Life Insurance (boys) - WHY ARE YOUR BOYS INSURED?

£14.00

Life Insurnace (joint) - THIS IS TOO HIGH, ME AND MY OH LIFE ISSURED FOR A £150,000 ONLY COST £39.00 PER MONTH JOINT.

£54.61

Contents Insurance - TOO HIGH

£35.00

Income Protection -MMM - COULD BE A WASTE OF MONEY IF YOU HAVE A WAITING PERIOD

£130.00

Mortgage Protection-MMM - COULD BE A WASTE OF MONEY IF YOU HAVE A WAITING PERIOD

£60.00

Grocery - HOW MAY FOR

£300.00

Total

£2,490.31

We really overstretched ourselves with the mortgage, which was stupid I know, but we are stuck with it now unless we can sell.

We pay a lot for income protection but need this because we work for the same company and it may be sold later this year.

Thanks

I have added some comments in above, I can see straight away where you can save some money, if you go for a IVA or DMP, some of those things above will not be allowed, some of the more experienced ones with more knowledge of IVA and DMP will tell you.

Merlot.x.

Merlot

Are you sure a IVA is the way to go, I would have thought a DMP, have you phoned the CCCS, get some other proffessional advice.