I have just recently took the first step to do something about my debt and have called around to speak with different companys about my options.
Now I am really confused as each company gives me different messages.
I am self employed and my husband works and we are both looking at doing the IVA we have a partial mortgage on a propety with only about 7k on this so not alot when our debts are around 45k
I first got told that I cannot do a IVA as I am self employed and as we have a mortgage. Then I got told I could not get a consolidation loan as I have a shared mortgaged. BUT.
I had a phone call this morning form a bank saying we have a loan in principle and just need to confirm who we are, blah blah, then I spoke with payplan this morning and the very nice lady told me that I can get an IVA and has started the process for me.
BUT....I am now confused and really worried that I cannot get this and what are my chances! Does any one have any advise with this type of application as it would be of great help and would any one recommend.
You can do an IVA if you are self employed and have a mortgage. I presume with a consolidation loan that if it is a joint mortgage it might need both of you to sign for it, but I'm not sure.
The 7k on the property - is that equity? If so, you may find that it isn't even that much now.
Payplan are a good firm, I am with them myself. I do recommend that you take a look at www.iva.com where you will find a list of companies and reviews. Some of the top rated companies post on here and you will get free and impartial advice as to all the options open to you. Give one or two a ring.
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
IVAs originally were meant for the self employed so you have no worries there. Appears your equity is less than your debts so you are insolvent so an IVA seems a perfectly viable option. Ensure that an allowance is made for future HMRC liabilities as this could cause seriuos problems if your IVA is not drafted correctly. Make sure your tax affairs are up to date as HMRC require the paperwork submitted even if you cannot afford the payments and if in doubt contact another firm of IPs for a chat. There is no charge and it could put your mind at rest.
Which firms have you contacted as a matter of interest? I would suggest that you try a firm that is experienced in putting forward self-employed cases.
I have phoned a few but the girl at gregory penningtons snapped at me saying IVA is not an option I only have DMP as a way to get. Being sucked in like a mug i listened more and I then raised concerns that I dont want to be chased by debt ollectors or CCJ and what can I do she then stated I wont get chased with any of these with a DMP and I am worrying about nothing.
Payplan this morning said the complete oposite which I am more inclinde to beleive as they said I will have a very high chance of getting CCJs and court summons etc and an IVA will be a good option for me and it is possible.
However I am looking about and now I am getting confused if I have to pay a lump sum to start an IVA?????????????????
Why would need a lump sum to start an IVA unless you had one lying around which is unusual for people in financial difficulties?
HMRC are not favourably disposed to a DMP and if you tried to include them you could find yourself with a CCJ, your goods seized or a bankruptcy petition. Some firms shy away from doing IVAs for the self employed so I agree with Melanie that you should speak to a firm with a track record in self employed IVAs before you commit to anything.
No, you don't have to pay a lump sum to start an IVA.
Some companies will ask for one months payment before the creditor meeting, others won't and Payplan are one of the those.
Beware of companies asking for two or three payments before they do anything. If they do ask for those, you want to know why and whether the money is refundable if you don't get accepted.
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
No I am fine with all my tax etc all our debts are in creditcards and a loan. For i have been b***** stupid and took my eye off the ball and some health issues and 2 kids I never regained being in control so juggling about has left me screwed and now I am paying for it.
I am still in panic mode so apologies if nothing is coming out in a clear logic or good spelling it is alot to get your head around and when you get so much different information it is so hard to find out who is looking out for your interest or just their commission.
also another thing that I am getting mixed messages about is that i have 2 bank accounts both over draw so these will go towards my debt which i understand but also with this bank I have my 2 kids savings accounts . Now there is nothing flash in them but it is there for them will my bank take money from them as they are linked to me to pay my debt?
If the accounts are in your name, then it is possible that the bank could take money out of them.
If they are in the kids names, then they should be ok.
You will need to open a new bank account for yourself as soon as possible - the Co-op and Yorkshire Banks are both recommended by posters on here.
I'd think about moving your kids accounts across as well if they are in your name.
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
Regardless what you decide there are a number of things to consider. Firstly, it is not a blame game and it is important to find the best solution for you and your family. Secondly, you must prioritise what you pay to ensure that there is a roof over your head and your family is provided for. If you owe money to your existing bank you should open a new account ASAP before anything adverse shows against you. This will improve the services given by the new bank [but do not accept an overdraft facility].
Do not panic as all situations can be resolved. It is true that IP firms do get paid from IVAs but we are very heavily regulated and if we give the wrong advice we are severly punished. No one should force you to take the wrong route just to make a fee.
i appreciate all your comments and NO overdraft or credit card will ever enter my life again.
I never appreciated my roof over my head till my last mortgage payment bounced and I had to juggle some funds about. They I had visions of kids on the street and allsorts. So thatnk you for the advice!
You may feel that you have no debt with HMRC - but actually all of the tax deemed to be payable for fiscal year 2009/2010 will be a claim in your IVA which will need to be calculated. Therefore HMRC may have some influence over whether you get an IVA accepted at the end of the day. I hope that Payplan will be able to discuss all of this with you, and don't forget that if you are self-employed you must have a face to face meeting with the IP or a senior member of his/her staff.
ah did not realise that. I am waiting for the to get back to me about meetings etc was not aware my pending tax will be added. I am in credit with them as I over paid so this may end up being just one big mess! Oh I am just confused again??????lol
Hi Thunder
Please don't start to panic, there will be a solution out there for you and Payplan should be able to talk you through all the options.
Alternatively contact one or two of the other firms on www.iva.com, you can speak to more than one and it won't cost you anything.
Good luck
