I am new to this forum and have already tried to make this post but I can't find it so I apologise now if I am duplicating myself.
I am currently on a DMP but am researching the possibilities of an IVA.
Aside from the DMP I am currently repaying a loan to my mother who helped me out at a difficult time before I had the DMP in place.
I pay her £250 per month and have about another 15 or so months to pay.
My question is whether I could still do this if I was in an IVA or would she be treated as one of my creditors and receive a lower monthly payment.
I don't want her to be penalised because of me and be short of money - she is a pensioner and would find it difficult to live without this monthly payment.
Also I don't really want to cause her worry and stress over my financial difficulties since she was so good to help me out in the first place. Any clarification or advice on this would be most appreciated.
Also I would like to say that although Ihave just joined the site Ihave been a regular read for quite a few weeks and found great comfort here in my low times since I am a single parent and really don't have anyone to talk to about this. So this site is a life saver.
Hi Silverlining and welcome from me too.
Your debt to your mother would have to be included and you could not pay her outside of the IVA unless creditors agreed.
It may be possible that creditors would agree to this depending on your mother's personal financial situation and your IVA payments could then increase once she has been repaid. You could take some free advice but even in a DMP you should not be treating creditors differently although I can understand why you are doing so.
Thank you both Sometimes Tina and Skippy for your replies. I figured this was the case although one IVA company said it could be excluded so wanted to seek clarification.
I guess then the best route for me would be to continue paying my mum and then perhaps consider an IVA in a year or so when I've paid her everything I owe. In that time she will have sold her property and downgraded so she will have a little nest egg to survive on.
I just don't want her to be involved in my mess I would feel ashamed to do to her in her 70's. Just don't understand why this company told me differently.
My DMP is running ok and I would be prepared to stick with for another year as long as the creditors keep the interest and charges frozen which so far they have. I just don't know how long they are prepared to do this for - if anyone can shed any light on that it would help.
Thank you Michael I totally understand. My aim was to repay my mum quickly but unfortunately my bonus payments at work dropped drastically overnight and at the same time my working tax credits went from approx £800 to zero overnight because they said they had over paid me by £6,000. So at the time I thought I would be able to repay my debt to my mum very quickly which didn't happen so we agreed this payment plan instead. But I would like to get her paid back asap so that she doesn't get penalised further down the line if anything else happens. She was so good to bail me out.
An IVA may be an option whereby your mother could be paid. Creditors would want to see evidence that your mother would suffer hardship if the payments stopped full disclosure to them would be the best option.
It is certainly worth investigating because if creditors accept the IVA you will have a definite date to be debt free and if they refuse you can continue on with your DMP. Nothing to lose by getting a bit of advice.
Many thanks Michael it certainly is - although it would seem I have been advised incorrectly by one company already! But I am going to speak to a couple more as well to get a bigger picture.
I really don't want to involve my mum any further so it may well be that I will just have to wait until I've repaid her what I borrowed and maybe then look at other options as well a little further down the line.
Im certainly glad I found this forum - companies can be so convincing on the phone and it's only when you read around on this forum you really do get a better understanding of the process involved in an iva and realise the real depth of thought and consideration you should put into before entering into such a legal agreement. Im not sure how I found this site but I am so grateful I did :}
You're right, there is some conflicting advice around but you will find the IPs and experts who post on here come highly recommended for a reason. Michael's right, if an IVA can be put in place taking into account what you have highlighted, then it will be a much more secure arrangement for you and give you better peace of mind.
Regards,
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
If you’re looking for effective debt related information, articles and news, then go now to our on-line advice service at www.debtadvicetv.com
If you’re ready to ask us for specific advice or help, then get in touch at www.call-me.debtadvicetv.com so you can start to free yourself from the stress and anxiety of overwhelming debt.
Though my concern is that my mum would not like people delving into her financial situation - it would upset and stress her very much. The only proof I can provide is the money leaving my bank every month and going directly to her bank - that has happened since February 2010 - however any scrutiny that would involve her I couldn't go through with - it would cause a lot of upset and resentment from her which is want I want to avoid.
I don't mind waiting until I've repaid her as long as the creditors don't start charging interest - at the moment all is quiet and a review will probably be due towards the end of the year. At the moment we are on a very tight budget but I have made cutbacks and we are just about managing.
I completely understand - we all want to protect our Mums and the last thing you want to do is upset the applecart.
I think all that Michael and I are suggesting is you have nothing to lose by seeking further advice from an IP to see if something is possible within the contraints you say. If it is then your Mum stays happy and unaffected and you have secure certainty in your arrangement. If it isn't then your Mum will be none the wiser and you can carry on as you are.
Obviously it is completely up to you and if you'd rather stay as is for now then thats absolutely fine.
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
If you’re looking for effective debt related information, articles and news, then go now to our on-line advice service at www.debtadvicetv.com
If you’re ready to ask us for specific advice or help, then get in touch at www.call-me.debtadvicetv.com so you can start to free yourself from the stress and anxiety of overwhelming debt.
I definitely agree - I have put a request through to a couple of companies one of which is Melanie's. I think the company I have spoken to obviously gave me some incorrect information. And I have checked and they are not listed on this site as a company which makes me a little more dubious. But yes forewarned is forearmed as they say and I am seeking some more advice so I can make the right steps at the right time. Many thanks Tina
The way that creditors are voting at the moment, I would have to say that I would not hold out muchhance of this happening - although I did get a case accepted last week where a client's husband was sending money to support his family in Africa, so you could be lucky.
Did the firm who told you this would be OK suggest that the debt be excluded completely from the IVA and not mentioned, or excluded with an explanation to creditors of the need for the repayments?
The company who told me this advised that it would be declared and it would be accepted provided that after I had repaid my mum my iva payments increased by £250 - they also suggested I could extend the repayment to my mum to keep my iva payments low. They also made a few other suggestions which to be honest I think were a bit suspect. They said that case officers worked for you and not the creditors. After spending many hours reading through this forum I don't have much confidence in what they said really. Although they reiterated it was entirely my choice and there was no pressure I did feel a little pressured by their over optimism that this was much better than my current DMP.
