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help with financial information anyone please?

woddle1000 Avatar
6y, 5m agoPosted 6 years, 5 months ago
my girlfriend has split up from her ex sometime ago, but they still have debts tgether and we are looking to get rid of them as best as possible, any help would be appreciated, long story short, they have a morthgage together, 15000 loan 6000 loan and another 6000 loan, their house is worth less than the mortgage and loans etc so negative equity, selling isnt an option.

Her ex has sudgested doing a joint IVB or something, basically they can do a goverment scheme to only pay £100 a month for 5 years each and then all debts are wiped and he still gets to keep the house, is this true and what is stopping her getting a car on finance first before they consolidate all their debts?
woddle1000 Avatar
6y, 5m agoPosted 6 years, 5 months ago
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banned#1
dont know what an ivb is, what about going bankrupt? the debt isnt a massive amount between them if they both have good jobs, as for the house then sell when the house market goes up
#2
Ex should move out.........why is she paying a mortgage when she's not living there? Tell her to sign house over to ex if he wants to keep house, consolidate other debts and sort out payment terms.

She should seek advice from the CAB asap.
#3
they are both on good speakin terms and wor at the same company so are going to sell when the market has grown and give her half of the equity yet still pay the mortgage on his own from now on so not too bad a deal she has looked at going bankrupt but would prefer not too if possible, plus she REALLY needs a new carand still needs finance!!!
banned#4
choc1969
Ex should move out.........why is she paying a mortgage when she's not living there? Tell her to sign house over to ex if he wants to keep house, consolidate other debts and sort out payment terms.

She should seek advice from the CAB asap.


just because someone doesnt live in a mortgaged house doesnt mean they dont have to pay, she obviously took on responsibilty of the mortgage and is as responsible for payments as she was when she lived there

they will need to go to maybe cab, but while they both have jobs and a home there isnt alot they can do, most of these places dont play ball with people who have homes and good jobs
#5
woddle1000;8969304
they are both on good speakin terms and wor at the same company so are going to sell when the market has grown and give her half of the equity yet still pay the mortgage on his own from now on so not too bad a deal she has looked at going bankrupt but would prefer not too if possible, plus she REALLY needs a new carand still needs finance!!!


Having all those debts, she still needs a new car! :w00t:

Just a thought, as they both have jobs can they not work out a plan to get all the debts paid each month together than bankruptcy? No real advice sorry.
1 Like #6
Its actually called a IVA but it does cause issues in getting finance and I think its something like 5 years after the IVA has been completed that you can then wipe the slate clean, therefore its similar to bankruptcy in that you have a record for 10 years. They may be better keeping the loans but consolodating them to reduce the payments, I think MBNA? do something like a low rate for lifetime of the loan.

I would recomend having a look on MSE as there is lots of info on debts on there.


EDIT - just found this

Individual Voluntary Arrangements (IVAs) can be a good way of dealing with debt problems. But, they also carry risk. Here is a summary of their pros and cons:

Advantages of IVAs:
•Allow you to repay your debt at an affordable rate over a reduced period of time. Alternatively, the IVA may be proposed on the basis that your family or friends are prepared to help meet your debts;
•Offers the advantages of bankruptcy but without some of the restrictions and disadvantages.
Disadvantages of IVAs:
•The costs of setting up an IVA can be surprisingly (some would say outrageously) high;
•You may have to pay an upfront fee;
•Defaulting on the payment arrangement can lead to bankruptcy;
•The regulation of Insolvency Practitioners is fragmented and many consumer groups report situations where Insolvency Practitioners seem more interested in the fees that they earn rather than the success of the IVA;
•Your credit reference file will contain details of your payment default.
IVAs can be a good option if:
•You face a large debt problem and a debt management plan will involve payments over a greatly extended period;
•You are faced with bankruptcy but wish to avoid the associated restrictions and disadvantages;
•You identify an Insolvency Practitioner who you can trust to propose a realistic, workable, and, if appropriate, sustainable arrangement which works to the benefit of both you and the companies to whom you owe money.
IVAs can be unhelpful if:
•You don't shop around to find an Insolvency Practitioner who understands your problems and who you feel you can trust.
IVAs can be disastrous if:
•You agree to make regular payments that you know you won't be able to sustain.
#7
An IVA is an individual voluntary arrangement and is very similar to going bankrupt - an insolvency practitioner would be appointed to sort out the debts and adminster repayments, and his fee (which is not cheap) would be added to the debts.
Bankruptcy/IVA is not an easy option, and would no doubt affect cradit rating (and the ability to get another mortgage) indefinitely.
It sounds like her ex wants the best of both worlds - the debts gone but he gets to keep the house.
She needs to see a financial advisor or a lawyer.
#8
Marina
Having all those debts, she still needs a new car! :w00t:

Just a thought, as they both have jobs can they not work out a plan to get all the debts each month than bankruptcy? No real advice sorry.


they dont work close to home so a car is a must for work and is past the point where we can keep throwing money at a crap car, your comments didntreally help, Shellywelly thankyou, that sounds really useful, do you know if there is any reason why she couldnt go to a car credit company now and get a car before she signed up for this and still have it consolodated with the IVA?
banned#9
woddle1000
they dont work close to home so a car is a must for work and is past the point where we can keep throwing money at a crap car, your comments didntreally help, Shellywelly thankyou, that sounds really useful, do you know if there is any reason why she couldnt go to a car credit company now and get a car before she signed up for this and still have it consolodated with the IVA?


unless she wants to be done for fraud this is not a good idea :roll:
#10
woddle1000
do you know if there is any reason why she couldnt go to a car credit company now and get a car before she signed up for this and still have it consolodated with the IVA?


As far as I know, any creditor can refuse to be party to the IVA.
I also think that taking out credit when you know you are about to declare bankruptcy could be considered fraud.
Any individual creditor with a debt over a certain amount could petition the court for her bankruptcy.
#11
i think our best bet is to see a financial advisor but didnt really want to go before making sure they are not just going to advise us to pay them too much money for doing very little
#12
woddle1000;8969385
they dont work close to home so a car is a must for work and is past the point where we can keep throwing money at a crap car, your comments didntreally help, Shellywelly thankyou, that sounds really useful, do you know if there is any reason why she couldnt go to a car credit company now and get a car before she signed up for this and still have it consolodated with the IVA?


Seeing what you intend to do, I'm sure my comments won't help, as I said it was just a thought. :thumbsup: Just surprised that someone with debts, relationship split and negative equity on mortgage wanting to go for new car on finance thats all :thumbsup:
#13
i didnt say new car, we just need something that is better than the one falling apart that one day is going to stop her getting to work and earning the money that is paying for the current outstanding debts
banned#14
woddle1000
i didnt say new car, we just need something that is better than the one falling apart that one day is going to stop her getting to work and earning the money that is paying for the current outstanding debts


why dont you get a car in your name, it seems to me you know exactly what you are doing, no one in their right mind would ask what you just have
#15
sassie
why dont you get a car in your name, it seems to me you know exactly what you are doing, no one in their right mind would ask what you just have


why not? we have a bad situation and we are trying to make the best of it
#16
in after the financial advisors on benefits:)
#17
woddle1000;8969304
they are both on good speakin terms and wor at the same company so are going to sell when the market has grown and give her half of the equity yet still pay the mortgage on his own from now on so not too bad a deal she has looked at going bankrupt but would prefer not too if possible, plus she REALLY needs a new carand still needs finance!!!


woddle1000;8969438
i didnt say new car, we just need something that is better than the one falling apart that one day is going to stop her getting to work and earning the money that is paying for the current outstanding debts


Hope your girlfriend gets it all sorted. Good luck. :)
banned#18
woddle1000
why not? we have a bad situation and we are trying to make the best of it


yes i thought as much, why not chuck in a few more loans and credit cards before going for it :roll:
#19
woddle1000
they dont work close to home so a car is a must for work and is past the point where we can keep throwing money at a crap car, your comments didntreally help, Shellywelly thankyou, that sounds really useful, do you know if there is any reason why she couldnt go to a car credit company now and get a car before she signed up for this and still have it consolodated with the IVA?


I think you have to have had the debts for sometime before consolodating into a IVA - She could get the car on finance and keep that finance plan along side the IVA, this in therory could be beneficial if she can keep up the repayments of both as will show on credit history that she managed to keep to a financial agreement.

The big issue with a IVA is getting credit afterwards as lots won't touch you. Therefore as soon as she can afford it get her to set up a account with the local credit union she can pay in as little as £1 a week. Then when IVA complete get her to borrow a small amount from the credit union ie £50 then pay back, and so on keep increasing the amounts and paying it back. It all shows on her record as keeping to a financial agreement. I had to do this when I left my violent ex as I had to leave my job at the time and had no financial help and got into a mess. I didn't have a IVA but I did get a CCJ, therefore my credit history was shot. So I was advised to do the credit union scheme and is got my credit history in a better state.
#20
I think the OP is hoping on rather a lot. Hoping that property price will rise. Hoping to have funds for a another vehicle etc. Truth is in current climate hoping has just become a lot more risky. People are dealing with wage cuts or redundancies right now. It would be more realistic for you to be tightening your belt rather than looking to take on more debt. Unless you have other more certain irons in the fire anyway.
#21
Shellywelly
I think you have to have had the debts for sometime before consolodating into a IVA - She could get the car on finance and keep that finance plan along side the IVA, this in therory could be beneficial if she can keep up the repayments of both as will show on credit history that she managed to keep to a financial agreement.

The big issue with a IVA is getting credit afterwards as lots won't touch you. Therefore as soon as she can afford it get her to set up a account with the local credit union she can pay in as little as £1 a week. Then when IVA complete get her to borrow a small amount from the credit union ie £50 then pay back, and so on keep increasing the amounts and paying it back. It all shows on her record as keeping to a financial agreement. I had to do this when I left my violent ex as I had to leave my job at the time and had no financial help and got into a mess. I didn't have a IVA but I did get a CCJ, therefore my credit history was shot. So I was advised to do the credit union scheme and is got my credit history in a better state.


that sounds great, thank you so much, sometimes these simple ideas pass you by if you dont ask, that would be a really simple solution to both problems, rep+
#22
Personally i don't think the best idea is getting more debt by buying a new car, but each t their own.

Could the house not be rented out until prices increase? Or could whoever lives there take in a lodger to help cover the bills.
#23
superskilly
Personally i don't think the best idea is getting more debt by buying a new car, but each t their own.

Could the house not be rented out until prices increase? Or could whoever lives there take in a lodger to help cover the bills.


we're not looking at getting a new car, just one that will not cost as much as we are paying in repairs for a knackered old Y reg 206, its had a hard life and is letting us know that, her ex is staying in the house and paying the mortgage until it is sold and still splitting the equitly so I think that isnt a bad deal
#24
Personally I would avoid the IVA and go to the CAB to see about consolidating the debts and working out a payment plan. The debts are shared between the two people so it's not as bad as it seems - it is possible to get out of that much debt and in my opinion, if you have spent the money it is only right that you pay it back. Also, the big black mark against your name after an IVA will affect you for many years to come.
With regards to the car - I would go for a cheap-ish secondhand car like a 5 year old Fiat Punto, and YOU (the OP) get the loan or finance for it, you say the car is for both of you so that does not seem unreasonable.
It's too easy for people to see an easy way out, but the best thing is to face the problem head on, no matter how much it hurts, get a plan of action, professional advice, hard work - maybe another job to help pay off the debts - and in a few years to come the OP's girlfriend will be out of the pickle and so proud of herself. It will be hard, but it is do-able.
#25
sickly sweet
Personally I would avoid the IVA and go to the CAB to see about consolidating the debts and working out a payment plan. The debts are shared between the two people so it's not as bad as it seems - it is possible to get out of that much debt and in my opinion, if you have spent the money it is only right that you pay it back. Also, the big black mark against your name after an IVA will affect you for many years to come.
With regards to the car - I would go for a cheap-ish secondhand car like a 5 year old Fiat Punto, and YOU (the OP) get the loan or finance for it, you say the car is for both of you so that does not seem unreasonable.
It's too easy for people to see an easy way out, but the best thing is to face the problem head on, no matter how much it hurts, get a plan of action, professional advice, hard work - maybe another job to help pay off the debts - and in a few years to come the OP's girlfriend will be out of the pickle and so proud of herself. It will be hard, but it is do-able.


I agree with alot of that, why the CAB though and not a FA? will a FA just steer me towards an IVA?
#26
woddle1000;8969576
we're not looking at getting a new car, just one that will not cost as much as we are paying in repairs for a knackered old Y reg 206, its had a hard life and is letting us know that, her ex is staying in the house and paying the mortgage until it is sold and still splitting the equitly so I think that isnt a bad deal


My car is a T reg golf ...albeit low mileage, but things are starting to fail on it (already had new clutch £300 and last weekend an ignition coil £50) but....this is far cheaper than buying a new car...especially on credit. Yes, things may be going wrong with the car but is the month on month spend greater than you or your GF would be paying for a loan?

At least until the house situation is sorted? :)

edit: also, car finance from the seller will be a good few % above getting a secured or unsecured loan for it
#27
My suggestion is to run away - too much going on with her, could lead for problems.

Not helpful, but there you go.
#28
DragonChris
My suggestion is to run away - too much going on with her, could lead for problems.

Not helpful, but there you go.


hahaha gave me a laugh though! (she cooks my tea or I would) ha
#29
woddle1000;8970053
hahaha gave me a laugh though! (she cooks my tea or I would) ha


Takeway - sorted :thumbsup:
#30
woddle1000
hahaha gave me a laugh though! (she cooks my tea or I would) ha


aardvarking
Takeway - sorted :thumbsup:


^ ;)

Would be cheaper too!
#31
DragonChris;8970241
^ ;)

Would be cheaper too!


Just re-read the OP - if all of those debts are also in her name you will get either:

a) screwed on interest rates
b) refused credit

That's a lot of credit to have - Mortgage providers will only take her name off if the account is switched or completed :thumbsup:
#32
Wow, so she has joint debts excluding the mortgage of £ 27000.................and wants to buy a car.

Years ago when I was divorced and on my own with my young son, I also needed a car..............but didnt have the money, so guess what, I saved up a little bit each week for one - and in the meantime used public transport.

I finally got a wee runaround that cost me about £1000 and that done for a couple of years till I got back on my feet, then bought a better car - once again with saved up hard earned cash. Getting more debt, when you are already so deep in trouble with it, is absolutely NOT the answer to it.

Unless she lives in the middle of a jungle and no access to public transport - then getting a car on finance isnt the answer - just adding to the all ready existing problem.
#33
In regards to the house - it would still be better to rent it out rather than let her ex stay there. Although he may be paying for the mortgage - that money could be put towards paying off the debts and the new resident could pay the mortgage amount. Obviously her ex would still have to pay rent elsewhere - but could no doubt find somewhere cheaper (maybe even free if family are sympathetic) and save money in respects of council tax and even the TV licence which could be put towards paying off the bills.
And allowing her half the equity is irrelevant if it's currently negative............

As others have said - an IVA can be more damaging than bankruptcy in many ways. And an IVA would not help you in any respect when it came to buying a car. An IVA is dependant upon lenders agreeing to accept a reduced rate of payment, but they don't have to. When it comes to things like a car on loan then they could just take it back.
As another member also pointed out - taking out such a loan close to application for IVA could be seen as dishonest. Perhaps even considered as fraudulant as you make a declaration that you can afford it.
Also - with an IVA you may have difficulties in making arrangements if the debts are in both their names unless they make the application together. Debts must amount to at least £15k, so if they are in different names and the application is made seperately this could effect the outcome.

One benefit to IVA's is that most debts are frozen. This means that late payment charges and interest will not be added provided the agreed payments are made. There are other ways to do this without an IVA- again seek advice from CAB or from a reputable advice agency-
http://www.nationaldebtline.co.uk/ - they can offer lots of impartial advice and even sample letters for dealing with debt yourself.
If you do chose to go with an IVA - ensure you go through an organisation that provides the service free of charge - they are out there and the money another company would take as a fee can be put towards payments instead - however small.

Also consider the fact that every application for credit makes it's mark on your credit history - and every declined application can have a very negative impact. Any credit your partner could secure with such a bad credit history would no doubt have an enormous APR as a result.

I know you didn't come on here to be preached at or patronised. But the first step to making your situation better (other than facing the problem) is to ensure no further debt is created. However hard the situation is in regards to transport - alternative solutions will be available. Getting a lift with a friend, cycling or the bus/ train.
#34
Any degree of debt 'can' be manageable. But that level really depends on incomings. If your joint salaries are in proportion to the debt and reasonably secure or you have other potential assets to fall back on thinking about a different vehicle may be an option.
I assume that all these points are not true in this case. There must be a reason that you are thinking of IVAs.
The job market is going to get a lot tougher over the next few years and greater numbers of unemployed will put downward pressure on salaries. Unless you are self employed you sholld not imagine that your income will grow anytime soon. And we could we in for a fall in property prices.
You really need to think of all possible ways you can reduce your outgoings and maximise your incomings. Thats going to mean reducing your expenditure on all things. Look hard at your regular bills. Food, Utilities, fuel, maintenance etc.
How large is your property? Can you possibly take in a lodger or two? What possessions, if any, can you sell?
I dont envy you your position but you will not be the only one having to deal with such things. I know of many who lost their homes during the last conservative reign. The only upside to that is that an anchor is removed. I dont know how long you have known your girlfriend but she is someone who has lived beyond her means (for whatever reason) and you need to be fully aware of that and its consequences if you are planning a future together.

Departments told to draw up plans for 40% spending cuts http://news.bbc.co.uk/1/hi/uk/10500081.stm

Think long and hard before you consider taking on any extra debt. Buses or walking may be a cheaper option or failing that a bike or moped. Other options are to gamble in some way. That may work for some but is likely to backfire and increase the debt. See if family or friends will allow you to stay with them. If that is possible maybe you can rent out the property to cover some of the debts. Hope you find a way.
#35
woddle1000
they dont work close to home so a car is a must for work and is past the point where we can keep throwing money at a crap car, your comments didntreally help, Shellywelly thankyou, that sounds really useful, do you know if there is any reason why she couldnt go to a car credit company now and get a car before she signed up for this and still have it consolodated with the IVA?


This shocks me. Its fraud, its immoral. Borrowing for something which you know you can't pay for and have no intention of repaying. *shakes head* This attitude is why our economy is so screwed ... borrow, borrow, borrow.
#36
Justifying your fraudulent actions by your pitiful mitigating circumstances is laughable.

If your going to commit fraud, you may as well go the whole hog get a tasty motor, two weeks in bangkok and a new range cooker. Or alternatively you could seek good financial advice & education for your Gf and her ex and find a legal solution to the troubles, could your GF, her ex, you get a better job/ 2nd job/cut back/ sell unused stuff etc etc

There are no guarantees that house prices going up, many think that prices could fall again, and whilst its amicable now there are no guarantees for the future, Is there an solicitor witnessed agreement about the split of equity in place or is it just a verbal agreement?

The split with my ex was amicable to begin with, when she realised it took me about 12 nanoseconds to move on, she turned into a bunny boiler, and it took 30k in legal fees and 18months to force the sale of the house and get her out of my life.

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