IVA Advice

[Diasflac]

Back Story:
After university I had a £1,500 overdraft with Abbey National, the day my course finished I had a letter from them demanding payment in full as my course had ended. I had no job and couldn't possibly repay it, I made complaints eventually going to the ombudsman who... Looking back now they must work for banks, sided with Abbey National but said they would credit me £50.00... So unable to pay it and being too young and naive to know to do, I took out an Abbey National Credit card and put it all on that, but I only had a £1,000 limit so the rest went to DCA on an arrangement of £50.00 per month.

I got a job at Barclays and they gave me a very low interest credit card for being an employee with a £1,000 limit. 2 months after starting I was dismissed for gross misconduct, which was actually whistle blowing when I pointed out things their "High Value Lending Team" was doing was against regulations. Again too young and naive to take them to a tribunal, Barclays are horrendous, but I won't go into that. Now I had no job again and a dismissal against my name.

Struggling to pay things while looking for work I took out a few loans, one for a computer so I could actually look for work with HFC Bank and another to actually pay for food and rent, this built up a lot and when I did get a job it didn't pay anywhere near enough to cover the payments as well as actually survive.

As the debt mounted (was about £7,000 at this point) I had to get payday loans to cover additional costs, but then I couldn't afford them, I had to get more and more... 11 in total, then the bubble burst, I was in absolute turmoil, I had defaulted on so much I couldn't get more credit. I was £17,700 in debt making £17,000 per year, unaffordable.

I was threatened with court action and at one point was about to be taken to court after having a letter from a solicitor asking me to ring him to get some information because he was about to file the case against me. So I applied for an IVA:

The IVA
The IVA was set up in 2 weeks but I advised them some details I couldn't provide until after, I was told I could not include them to the agreement so they weren't, but all but £2,700 of the debt was included with very low payments. Since then after 6 month reviews I earn more and the payments have justly gone up, but now I have these external creditors hounding me to quite serious levels.

I owe Vodafone £2,000 apparently (I have a dispute with them so I might not actually have to pay them anything). Then I owe TalkTalk £121.00, Salford council £96.00 (I'm ignoring this, this gets its own thread), 3 mobile £700.00 and another company £13

Now if my dispute with vodafone fails, is there anything I can do about the IVA to include these creditors, the IP says it would have to be a new agreement which I can't afford. I was told today I could let the IVA fail and the creditors could push to Bankrupt me (saving me the £700 fee). However I have no assets and I can't see them pushing forth with that.

Is there anything I can do about these other creditors, after household and medical bills the IVA takes ALL my free income.

[SXGuy]

Re: IVA Advice

If you have no income after medical bills and household bills, then you cant pay them can you? if you have no assets, they cant force you to sell anything to pay them, therefore whatever they do is immaterial.

Others will suggest what to do better than me, but i wouldnt worry to much.

[Diasflac]

Re: IVA Advice

True I suppose but I would actually like to go bankrupt, the £700 fee is what made it unrealistic. However if the creditors did enforce bankruptcy I don't have to pay the fee, problem is they don't have to...

[SXGuy]

Re: IVA Advice

I see your point, i think there are some charities which will pay for the BR for you, but i think you need to prove serious hardship.

If BR is what you want to happen, they as far as i can see, you have nothing to lose, in which case, just dont pay them a penny, if they take you to court, the judge cant award a payment you havent got, at some point they are either going to have to give up, or bankrupt you.

Either way, you win, sooner or later.

[PlanB]

Re: IVA Advice

Back Story: After university I had a £1,500 overdraft with Abbey National ... So unable to pay it and being too young and naive to know to do, I took out an Abbey National Credit card and put it all on that, but I only had a £1,000 limit so the rest went to DCA on an arrangement of £50.00 per month.

I got a job at Barclays and they gave me a very low interest credit card for being an employee with a £1,000 limit. 2 months after starting I was dismissed for gross misconduct, which was actually whistle blowing when I pointed out things their "High Value Lending Team" was doing was against regulations.

. . . So I applied for an IVA:

Is there anything I can do about these other creditors, after household and medical bills the IVA takes ALL my free income.

I've just found this thread and it's the only one from someone actively in an IVA (none in the IVA section). I'd like to learn more about your experience as it goes along.

First things first, well done you for whistleblowing on Barclays It may have cost you your job and damaged your career prospects in banking but it shows you've got morals and principles which are in short supply in the financial sector. Turn this situation to your advantage and use what you know to provide information to the media - but make sure you get paid for it

I can't answer your question about adding debts to your IVA once it's up and running but maybe someone else can. It must be very stressful dealing with your debts in the IVA as well as dealing with other debts outside the IVA as in your diary http://forums.all-about-debt.co.uk/s...ad.php?t=10111

Maybe there's something in this sticky which helps your overall situation.

http://forums.all-about-debt.co.uk/showthread.php?t=172


I see you have medical bills and I wonder if health is an issue whether you've explored all the financial help you could be entitled to get?

Good Luck with all this

[Diasflac]

Re: IVA Advice

I've just found this thread and it's the only one from someone actively in an IVA (none in the IVA section). I'd like to learn more about your experience as it goes along.

First things first, well done you for whistleblowing on Barclays It may have cost you your job and damaged your career prospects in banking but it shows you've got morals and principles which are in short supply in the financial sector. Turn this situation to your advantage and use what you know to provide information to the media - but make sure you get paid for it

I can't answer your question about adding debts to your IVA once it's up and running but maybe someone else can. It must be very stressful dealing with your debts in the IVA as well as dealing with other debts outside the IVA as in your diary http://forums.all-about-debt.co.uk/s...ad.php?t=10111

Maybe there's something in this sticky which helps your overall situation.

http://forums.all-about-debt.co.uk/showthread.php?t=172


I see you have medical bills and I wonder if health is an issue whether you've explored all the financial help you could be entitled to get?

Good Luck with all this

I like the IVA, mine is for 6 years starting at £117 per month on just over £15,000 of debt. I don't know how it works on their side or what the creditors get but I can tell you my experience. It was very quick (up in 2 weeks) but you have to chase them and make sure all your documentation is correct, they need to see your bank statements, pay slips, letters from creditors currently with the debt (ones from who had it before are fine if attached as a letter explaining it all helps too). The more organised you are the faster it is.

You don't have to attend the meeting but mine was accepted as most creditors didn't attend and abstained and of the 6 that did 5 accepted and 1 rejected, so it was automatically accepted.

I kept receiving calls from creditors for a while but my IP (Insolvency Practitioner) told me after 2 months they have to stop, it's just the time between being put on the Insolvency register.

After 2 months the calls all stopped. No letters, nothing, just peace so it is very good. I did have a letter recently as one of the creditors I'd added on I didn't have any paperwork for so they had got the wrong people but as soon as the IP sorted it out everything was fine.

How much you pay is based on what you have left. They have a list of outgoings (which are very generous) that you need to live on. If anything you have is more, or you drive etc, you add these to it with proof. They give you something to spend (it's not lots but it's fair) and the rest you pay by direct debit every month. Mine is 6 years but usually they are for 5, depends on the creditor meeting what is agreed. The bonus for 6 years is as soon as the IVA ends for me it drops off my credit file, as do all the defaults. Once my IVA ends, my credit file is clean and all my debts are written off.

You have 6 monthly reviews where you have to send them another expenditure form, payslips and bank statements and they assess how much you can pay again. If you have a pay rise you pay may, if your bills go up, you pay less. It's a very fair system from what I've experienced so far.

As for the other debts. My IP has said, if the debts are from before the creditor meeting they can be asked if they want to join the IVA (they can refuse). But as I'm in an IVA it's pointless pursuing me to court. All my free income is paid to an IVA, what could they get.

If you want to know anything specific just ask and I'll try and answer it