Can anyone advice please? im desperate.

[LoneRanger]

Hi
I have a question that in mot sure how to word so i hope this is not confusing.

Myself and my partner are in the process of setting up an IVA, today we had our draft proposal. Intitially we were told we would be looking at payments of £500 a month. To my shock the offer as it stands will be £750 per month. WE CANT AFFORD THAT!
Basically when phoning the company they said we are 80 grand in debt, we are not we are 45 grand in debt between us. But they said because we have a joint debt with HSBC of 25k, we are both liable for so we both owe 25k which is why we owe 80k -EXCUSE ME FOR BEING CONFUSED!! the proposal is saying i pay 37p to the £ and my parnter 40p to the £ with a total injection over 5 years of 77p to the £, which to me is wrong cus the total figure they have come up with is:

Injected by me £21,300
Injected by my partner £23,533.30
Total paid back £44833.30

I make that pretty much 100p to the £

We cannot afford this, if we had £750 to pay to our creditors then we would never have fallen behind and be in this mess etc, Can anyone advice please? im desperate.

[Moneystinks]

Who is your IP?

If you feel you can't afford it then don't sign it untill you fully understand what you are signing.

Goodluck we have just had our proposal and I too am confused but I am confident that after a phonecall everything will be ironed out.

Melanie e mail on way [:I]

[luluj]

I have a joint IVA with my husband - we owed our bank over £30K - it was counted only once in our total but listed as a joint debt......go back to the IP and ask them to confirm this accuracy - if they still say yes then I would start again with another firm of IP's

[chris.g]

Hiya and welcome. If your gut reaction is that you can not afford it, don't sign any paper-work! If the proposal is unrealistic the IVA is doomed to fail. Contact your ip, not the advisors who tend to clients and ask how 1 debt can be counted twice for a start and explain your concerns about the payment amount.

[Sarah]

I am really confused by this why would it be 25k bor both of you when you have only borrowed the 25k..... i would question all of this and if they dont come back with a full expliation then it is not too late to switch firms

[LoneRanger]

hi

thanks for the responses. We are using cleardebt. I have since spoke to someone else and they have confirmed that this is the correct way they have to deal with it. It is to prevent the creditors chasing the other person for the remainder of the debt.
Aslo they had my average monthly income higher than it is due to 2 counts of minimal overtime that is very rare so averaged it over this. the proposed payment has dropped to £671 interlinked, still steep but i forget about the fees they ip will be getting so the 77p to the £ is correct. working it out we can pay this but it will be tight providing nothing goes wrong over the 5 years, my only question is where the hell has this amount of disposable some from because its never there at the end of the month at the moment.

[LoneRanger]

im not sure why mu oh will be paying more to the £ than me when i earn about £400 more than she does!!

[luluj]

Sorry - I am still confused as to why the debt is counted twice in the total. Ours was listed on both proposal documents but was only counted once in the total amount we owed ----I still say this is wrong and would question.....also do not just rely on one company - get advice from a second one!

[Beans on Toast]

Hi tryingtohelp, something doesn't seem right about this, have you tried any other companies to see if they come up with a different proposal, you may want to try and contact Melanie Giles who posts on here regularly.

As others have said, DON'T sign up until you are sure about this - the double debt thing does not ring true somehow.

[LoneRanger]

its not counted twice-the woman i spoke to didnt know what she was talking about but i emailed Melanie and she phoned me and explained everything. very kind of her to do so

[Moneystinks]

Ring somebody else and see what they suggest.........

[LoneRanger]

as clear debt have all my paperwork i.e payslips, loan agreements etc, how would i be able to get another proposal from another company?

my name is Steve by the way [:)]

[Moneystinks]

Hi Steve by the way!!!


I'm with Melanie and it's nice to know she is about on here all the time!

[MelanieGiles]

Size 5 works for that company and may be able to help out here if he is on line this afternoon.

[Moneystinks]

Oops this is where I delete my posts lol!