Started the IVA ball rolling

[mattp83]

Im new to this site, but by christ am i glad to find it!!
I have just started the ball rolling for a joint IVA with my wife with Payplan.... total debt a staggering £63k between us, very embarassing indeed!!
I have couple of questions i hope someone can answer...

1. Obviously we are required to open a new basic bank account, but which is the best? i have looked at CO-OP for there standard current account which has an optional overdraft which we will obviously decline, is this one ok?

2. We have been stupid and got a couple of payday loans, which are becoming a struuggle to pay, do we declare these to the IP?

3. What are Northern Rock like at accepting a Iva proposal, as we have that ridiculous 'Together mortgage' where we have £25k in an un-secured loan with them, what will happen to the actual mortgage?

Any Help would be much appreciated!

[Michael Peoples]

Hi Matt and welcome to the forum. To answer your questions the co-op have a very good reputation here and they do not discriminate against those who are insolvent. Seems a good choice of account.

The Payday loans can be included so notify your IP and give them the details. The Together loan is different and N Rock do request that the IVA term is extended to six years and sometimes request that the mortgage is switched to interest only for the duration. It appears that this is not in all cases but decided by N Rock on an individual basis.

If the IVA is accepted your payments to N Rock will decrease to the amount of the mortgage only and the unsecured element will become part of the IVA. Good luck with your proposal.

[Declan at DebtFreeDirect]

Hi Matt
Welcome to the forum, you will find a lot of help and advice on here from all the regular posters.

In answer to your questions:
1) When opening a new bank account, the main thing to do is to open one with a bank whom you have no debts with. Generally speaking most high street banks offer the basic account (i.e. with no credit facilities). As long as you do not avail of any credit offered on your account this should be fine. In terms of who best to go with, I have heard good accounts of Co - Op but it may be best to look around.

2) Yes - all debts you have must be declared to your IP. Having debts outside the IVA could potentially fail your IVA as this would be seen as treating the Payday companies preferably over the rest of your creditors. Let your IP know about them as soon as possible.

3) With regards Northern Rock, it is best to speak to your IP and ascertain what their voting criteria is. In terms of the mortgage, payments will continue as normal but best to seek clarification on the unsecured part of it.

Hope this helps.

Thanks

[mattp83]

Thanks Michael and Declan..... With Northern Rock, I have made sure i have never missed a payment, and the majority of the time i have overpayed by atleast £5-10 p/m for the last 3yrs, hopefully this may go in my favour... I will keep you updated.

[Declan at DebtFreeDirect]

Hi Matt
Do let us know what happens.
Thanks

[Julie]

Hi Matt - welcome to the forum.

The Co-op account is used by a lot of the forum memebers. Its not unusual to be declined if you apply online, however you can apply over the telephone or at a local branch, no problems at all.

Good luck and keep us updated.

xx

[Shining]

Hi Matt - just welcoming you to the forum too and keep up dated how it goes for you.

Hope it's a smooth journey for you.

[Pennyless]

Welcome Matt...no pun intended.

Within 15mins of asking a question you get an expert answer...now where else can you find that sort of service lol?

Anyway good luck and you have made the right move by coming on this forum.

[mattp83]

Thanks for the support guys, its nice to hear off people who are in a similar situation as myself, makes the whole thing slightly less painless!! lol.... Anyway another quick question, maybe on for the experts

The payday loans i have 1 is due out 30/9, and the other 2 i have rolled over till the end of october, i cant cancel the direct debit online as there is no history of payment to them yet, but am scared to phone the bank as i have had to cancel the direct debit for a loan i have with them due out on the same day as the payday loans. HELP!!

[Michael Peoples]

Make sure and get a new account opened as soon as possible and have your wages transferred to it. Then it will not be a problem because the direct debit will bounce anyway. It is difficult to stop a DD from your bank account to your own bank as they will just take the money anyway but if your bank has cancelled the DD that is not so bad. However, they may still grab your wages if they think you in difficulty so a new account is your most pressing priority.

[mattp83]

Just applied for a standard current account with CO-OP and declined the option of a overdraft, hopefully this will be accepted, but they say it will take 5 working days for a decision!!

[mattp83]

Just recieved an e-mail from payplan with a lady called Doreen Briers introducing herself as my Case officer, is this my IP?, any of the experts know her?

[MelanieGiles]

She is unlikely to be an IP, but should be an experienced member of staff who will hopefully look after your case well into the future in order to remain consistent.

[kallis3]

Everyone with Payplan has a case officer. This isn't the IP, but she will be your point of contact at the firm. You will be able to phone her or email her with any problems or queries.

Once your IVA has been approved, you can sign up to Justabank, which is something Payplan operate and you can keep an eye on how your IVA is running.

[Shining]

Sounds like you're in good hands and I know other posters on here are very happy with the service payplan supply. Hope it goes well for you.