SHOULD I DO AN IVA? - (Scotland)

allybally1971

Hi, Im new to this. I have credit card debit totalling £16200 over 5 cards, and a £1000 over draft which Im never out off. 1 card has £660, another has £9150, another on interest free at the mo has £1100, another has £2900 and the last 1 has around £2550 on it. The biggest amount has not long been opened.
What I was wondering is, at the moment my minimum total payment is £210 per month, and I wondered if it was worth going for the above trust deed, as it seems I could clear my debt in 3 years, paying £200.65 + £730 admin fee and another £550 for some bond to secure any equity. Another company has said I would pay £164 per month for 3 yrs plus 1 extra payment of £164 for admin fee.
My mortgage is £146000 which includes a £15000 secured loan, with a further £49000 secured loan. My house at current is valued at approx £180000 but no more than £190000.
My mortgage(and secured loan) payment is £700, my seperate secured loan is £450, my council tax is £153, gas + elec is £110, my contents and building insurance is £28, life ins' £8, phone line + calls £25, broadband £13, tv £11. All of these are monthly except council tax. My wages after ni and in' tax is £2019.
Would this protected trust deed be of value to me, as it appeals to me but I do not want to hand over any equity on my house in 3 years time. Also, does anyone know what would happen if I went for the cheaper offer and was then knocked back, would I be able to apply for the other companies trust deed?

Can someone help me in this mine field as I have to answer this on Monday to the 2 companies who have offered me there 2 seperate quotes.

coolcait

Hiya Allybally!

Have you spoken to Citizens Advice or anyone else about your options? I'm a bit worried about the figures you've quoted for the Trust Deeds. One doesn't even mention the trustee's fees. The fees for the other one seem pretty low (I've heard that the fees are usually a couple of thousand if not more).

The companies also don't seem to have told you about the risks - you could still be sequestrated, you could lose your home etc. Have they given you a 'cooling off period', and how long was it for? These are all things that they should be doing now, because the laws changed on 1 April 2008 (apparently a lot of people in trust deeds didn't realise what they were getting themselves into, and didn't expect the trustee to charge so much, so the law got changed to try to sort this out).

I'm no expert, but from what you've said, you might be a candidate for the Debt Arrangement Scheme. From the figures you've mentioned, it would take a bit longer to clear your debts (about 6.5 years), but they would be clear - and your home would be protected.

There's a website about it here

http://www.moneyscotland.gov.uk/das/das_display_home.jsp;jsessionid=83D53E1526F82075BE89AD16E43F1D6E?p_applic=CCC&p_service=Content.show&pContentID=3&

But I'd really recommend you speak to the CAB, if you haven't already done so.

Good luck!

GeorgeUK

The Trust Deed is the Scottish equivalent of an IVA.
This is basically one step away from bankrupcy - are you really at that stage?

Post up a Statement of affairs (SOA) and we'll see if we can advise on whether this is really necessary. If you require additional help in deciding, lpease contact one of the free debt charities such as CCCS or CAB before deciding.

http://www.makesenseofcards.com/soacalc.html


(Taken from Fermi's signature)

Professional, free and impartial advice on debt problems can be obtained from several charitable and 'not for profit' organisations. They never make a penny from the advice they give, which means it will be given with only your best interests at heart. You can contact:

Your local CAB Office and ask to speak to a 'money advisor'
The Consumer Credit Counselling Service (CCCS) - Tel: 0800 138 1111
National Debtline - Tel: 0808 808 4000
Payplan - Tel: 0800 917 7823

allybally1971

Hi, and thanks for your replies.
What is a statement of affairs, is it all my monthly outgoings, including my minimum payments to my cards?

allybally1971

Hi, again, I meant to say I will put off any progress with any possible Protected Trust Deeds for the time being, and get in touch with the Citizens Advice first, and also look into the Debt Arrangement Scheme.

Thanks guys.

GeorgeUK

SOA is your income and outgoings - the link i supplied is a handy tool so that most things are included.

allybally1971

Thanks. I will check out that link tonight when I have all the figures to hand. I couldnt get hold of the citizens advice as they shut at 1pm today. I did however get in touch with the consumer credit counselling service who said someone will get in touch with me on Mon' July 7th, seems ages away!!!

GeorgeUK

To get more people to look at this thread it may be worth altering the title to something like
Should i do an IVA? (Scotland)

Just Edit your first post and you should be able to amend it. Not too many mentions of trust deeds of the site, but they'll know what an IVA is.

allybally1971

Thanks, AGAIN!!! I will see if that helps, and post my SOA over the weekend if not over the next 24hrs.