Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Don't forget to let us know how you are getting on, and of course if you have any questions, we will be pleased to answer them for you.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
56% should not necessarily be a problem if there are good reasons for the secured debts being so high. Are you on a repayment or interest only mortgage as a matter of interest?
And if as you state your DI is only £180 how on earth on the fees your IP has quoted they are prepared to suggest an IVA.
Melanie to answer your earlier post about a 10p dividend - well if it is protocol compliant and is (a) affordable, (b) achievable and (c) represents the debtor's best interest - then yes I would put it forward.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
As David has highlighted - those fees are ridiculous in this day and age. They will never be accepted by creditors, and I suggest that you change your IP firm!!!
You would be better using one of the IP's who post on here who come highly recommended. If you click on the experts link on the left hand side of the page you will find their details on there.
Give one or two a ring and get their free and impartial advice. It will be much better than that which you have currently been given.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I don't want to give the wrong impression about the advice DFD have given us because it is based on what we have said in discussions with them and if it is our only route, we will have to take it.
They wouldn't put a proposal forward with £180. They said the creditors would not accept the 56% mortgage payments and would we consider renting to release more money for the IVA. (Our secured borrowing was based on 125% of property value 5 years ago. Interest rates on second secured loan are much higher now than they were when we took the loan out.)
However, the proposal that they have prepared is for us to hand over our house keys for a voluntary reposession (not quite what we discussed!). Creating an extra creditor due to the estimated shortfall of £30,000 but giving us £980 to pay into an IVA which covers their fees and gives a dividend to our creditors of 40p/£.
It definitely doesn't feel right to us to create an extra debt of £30,000 from a secured creditor so we have contacted both secured lenders, explaining the situation and asking them to extend the term of our loans. Previously our second secured lender had been less than helpful but I have pointed out that it will be much worse for them if they don't, so they are thinking about it. Our first mortgage is repayment + interest. When we asked, they said they no longer do interst only mortgages. We are awaiting their decisions.
If they agree, we feel we will be able to achieve aprox 25p/£ if we go to a low cost IVA provider. Would either of you be interested in taking us on?
If we change, how easy will it be to get all our statements etc back from DFD? I have copies of evrything I sent them, could we proceed with those or would you need the originals?
"It's better to be in control on a small budget than to be out of control on a large budget."
Please don't agree to anything you're unsure about, especially when something as important as your home is involved.
I would recommend contacting Melanie or David as both will give you good honest advice, and I also know that David's firm has been successful in putting forward low repayment IVAs. It won't cost you anything to speak to them, and you can decide to go from there.
I don't know how long it would take to get your paperwork back from DFD, but there's no reason why it should be a problem.
David is proposing my IVA at 22p in the £ and I think it comes down to what you can afford along with if it gives the best return possible to the creditors. I am sure David and Melanie will advise though.
IVA.co.uk The best place for debt advice. Thanks to Melanie Giles, David Mond, David and J (Elv5) Kallis, Dand, Skippy, Andy Davie
Don't worry, I definitely won't sign anything until I'm happy that it is our best (or only) option.
I'm waiting to see what our secured lenders say. Once I have their decisions, I will have a better idea what our options are. In the meantime, I'm finding out as much as I can.
This site is brilliant. I've never been involved in a forum before - coulnd't really understand why people wanted to talk to strangers - but now I know. Everyone is so helpful and supportive. I can't help myself from coming back.
"It's better to be in control on a small budget than to be out of control on a large budget."
Angel, our mortgage and secured loan come to more than 50% of our monthly income, and nothing was ever mentioned about selling our house.
As Skippy says, phone David and Melanie. David does do a lot of low DI IVA's.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Our secured is about 48.8% of net income and approx 41.2% of gross, Melanie, David, Andy and Jan have all told me not to worry - Andy said the rule is very flexible. I don't know if the rule is applied to net or gross or both
I am trying to understand alot of what is written on here as I am new to it. Can someone tell me what a low cost IVA is, how it differs from the standard and why is it so specialized. Also, what are debtors expected to do if there are simply no houses/flats to rent. In this area there are over 4000 on the housing list - some have been on for years. Do creditors understand that it may be impossible for some and accept the obvious?
