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Hi, I am a new member and I have got a interview booked in for tomorrow morning to go through the IVA process for the first time. I have spoken to CCCS who have said I may be able to get a lump sum IVA and still do not understand exactly what that means? My disposable income is not very much in comparison to the debt(about 8%) and then in one years time I will be receiving a lump sum of 25% to give on todays figures a total percentage of 33%. Is this something that will be looked at favourable in your opinion? If a DMP was suggested instead, how many years could this go on for? I have worked it out if my finaces never changed, it would be 46 years - very worrying! I so wish I dealt with this sooner and any advise or answers to my questions would be very much appreciated before my call tomorrow.

Thanks

Hi Cadman and welcome to the Forum.
IVAs do not have to run five years and lump sum IVAs are common. What you are proposing seems perfectly acceptable although I am curious as to where the lump sum is coming in twelve months. If this is anything to do with a pension you should serious consider speaking to someone else as this could affect your retirement and can be avoided.

Michael, thank you for responding. The lump sum in question is from a PPP with First Plus and it will be paid to me by cheque June next year. To date I have not missed any payments or made any claims.
If my IVA is approved, would I make payments upto the point of the lump sum or would I continue to pay for the full term of 60 months?

If there still is a surplus available the IVA would run five years. However, if interest rates for example increased and you had little or no surplus, then the IVA would cease. If your current surplus is quite low it would only be worth taking the payments until the FirstPlus payout as it would be uneconomical to go on afterwards.

Remember though, that the rebate has to be claimed within a set period otherwise you will not receive the rebate. Overall sounds like good grounds for an IVA and I would certainly recommend such an offer to creditors.

Thank you Michael, I may well be in touch as I like your confidence and I want to be confident all the way through this . I

am at fault for the borrowing but do feel that each of my creditors have not done anything to assist me over the past 3 years except for raise all of my interest rates to 30% plus and then when I have paid them large sums, they then reduced my credit limits without informing me. This then made me rely on my cards and other credit to get by.
I have always been happy to pay back what I borrowed, but enough is enough and before I get into a serious bad way I am now dealing with the problem.

You have run the debt up and the question now is how to resolve the problem. Hindsight is wonderful but ultimately people get into debt and an IVA is good way to return money to creditors while avoiding bankruptcy. The problems you mention are not unusual and most people in financial trouble have similar stories but you are able to get money back to creditors and restart your life so I see no reason why your IVA would be rejected.

Hi Cadman and welcome from me as well.

We all feel the same about the borrowing, but I do agree that creditors could have said no as well. We've all been in the situation of relying on the cards too much as well.

Michael does come highly recommended on here.

Hi Cadman

Just wanted to say hi. I've only just started too. This forum has been really helpful, everyone's really supportive. Good luck.

M80 x

A big thank you to everyone! and it is great to finally be able to off load to others who understand the situation

Cheers
Cadman

Hi and welcome from myself too. We're all in or have been in the same boat at some point here (professionals excluded) but we do all understand. Hope it goes well for you x

Hi there, welcome to the forum and good luck with your interview. Let us know how you get on xx

A lump sum based upon the return of your PPI money seems on the face of it a sensible solution. Was the PPI sold to you in good faither - or were you advised, either directly or indirectly that the loan would not be granted unless you agreed to take out the insurance. If so, you may also like to consider a mis-selling claim as - if successful - you would get your secured loan repayments reduced which could leave you with sufficient money to pay a sensible ongoing contribution to creditors - whilst then benefitting from much lower secured loan payments once the IVA has concluded. This is often worth looking into as an alternative solution.

Hi Cadman, I am new on here too. Have just missed the first round of payments and starting to get the calls but it's worth it. There's only so long you can go ith sleepless nights and sticking your head in the sand.
Everyone is lovely on here and very very supportive and full of great ideas.