General Questions
#Q.
Who are Debtcccs?
A. Debtcccs are essentially part of a total
solutions network and one of
the largest connection companies in the UK.
Debtcccs act solely on the behalf of their clients.
Debtcccs Ltd are not authorised by the FSA
(Financial services authority)
#Q.
Why is ABC not authorised by the FSA?
A. We don’t need to be we act as an introducer
between you our client and the company our client,
to provide you, with the right type of company and
the company with the right, type of client. You only
need to be authorized by the FSA if you give
financial advice.
Mortgage
#Q.
Why come to Debtcccs when the high street is full of
lenders?
A. We specialise in finding finance for clients who
may have difficulty getting a loan etc from a
traditional bank or building society. We have
schemes to suit people that have mortgage arrears,
credit problems, no proof of income, unusual
properties and hundreds of other situations that
might cause banks and building societies to say
'no'. What ever your circumstances we can normally
find a product to suit you.
#Q.
How much will it cost to arrange?
A. Debtcccs do not charge you a fee but
you may incur some or all of the principal
transaction costs described below when taking out
finance with a new company. Full details of costs
will be provided with your personal illustration. If
you are re-mortgaging there may be redemption
charges or other fees payable on redemption of your
current mortgage. It is important that you are aware
of these costs and consider them fully before
proceeding with a new advance. If you are
re-mortgaging and any of the funds raised are being
used to repay or consolidate existing unsecured debt
then you should be aware that these will now be
secured by way of a first charge on your property
and you will pay more over the long term. Your home
is at risk if you do not keep up repayments on a
mortgage or other loans secured on it. Be sure you
can afford the repayments before entering into a
credit agreement.
-
Broker Fee, Brokers tend to charge a fee for the
work that is done on your behalf, you will
always be advised of the amount before any work
is done but it is not payable until completion.
-
Legal Fees, you may need to instruct a solicitor
to act on your behalf or Debtcccs
can nominate one for you, but you will be
responsible for paying their costs.
#Q.
What information will you need?
A. We require general personal information about you
and you current situation such as:-
· Payment Arrears
· Defaults
· Court orders pending etc.
#Q.
What happens if things go wrong?
A. You should find your dealings with us to be
prompt, efficient and friendly. Our aim is to
provide you with a first class, professional and
confidential service. If you have a complaint we do
have a formal complaints procedure to ensure that
your complaint is dealt with quickly and
efficiently. In the first instance you should
contact our Company Appointed Compliance Officer at
Debtcccs.
#Q.
What happens if I change my mind?
A. You are under no obligation to proceed, and there
will be no costs or fees incurred, provided your
house has not been valued, if the property has been
valued then a valuation fee will be payable.
#Q.
What else should I know?
A. Solicitors where the lenders own solicitor is being
instructed to carry out the legal work in respect of the
mortgage transaction you should be aware that they will
be working predominantly on behalf of the lender. In
this situation you may wish to seek independent legal
advice.
Contact us now to find out what ABC can do for you
TODAY…. Enquiry
IVA
#Q:
What is an IVA?
An IVA is a legal process introduced in 1986 as part of
the insolvency act that allows a person struggling with
debt the opportunity to make a formal proposal to their
creditors in order to clear their debt. The purpose of
an IVA proposal is to demonstrate to creditors that it
would be of greater benefit to themselves and the
debtor, in comparison to the debtor being made bankrupt.
A creditors meeting is held and if the proposals being
made are accepted by the required majority of creditors
then they become legally binding on all creditors
notified of the proposal. Once accepted, creditors have
no alternative but to stop any further interest and
charges accruing on the outstanding debts. The benefits
of an IVA are...
Upon the successful completion of the IVA the debtor
will be considered debt free even though they may
not have actually paid off all of their debts in
full. Any outstanding balances are written off
(known as a composition of debts) and the debtor is
then free to make a fresh financial start...
#Q:
Who can enter an IVA?
Because of the costs involved, it is only practical
for people whose debts exceed £15,000.
#Q:
Will I lose my house?
No. But should you have equity in your house then
this will be taken into account at some time during
the arrangement (usually at the end). If there is a
joint owner of the property and this person is not
party to the debts in the arrangement then their
share of the equity does not have to be included in
any offer to creditors.
#Q:
Can I stay in business?
Unlike being declared bankrupt, there's no limit on
your business activities.
#Q:
I am a professional person-will it affect my
position?
No, not at all. People from all walks of life are
eligible to enter into an IVA with their creditors
without prejudicing their employment.
#Q:
Will it become public knowledge?
No, it is very confidential. Only your creditors
will be aware of your position: In fact even your
spouse needn't know, although we would normally
advise you to tell them and so clear the air. It can
be very hard living with a secret.
#Q:
How long does an IVA last?
An IVA normally lasts for five years but this time
can become shorter depending on individual
circumstances.
#Q:
Which creditors can be included in an IVA?
Creditors that can be included are: banks, finance
companies, credit, store and charge card companies,
HM Customs and Excise (VAT), Inland Revenue and even
loans from friends and family. However, you cannot
include your mortgage, hire purchase, student loans,
fines, debts incurred through fraud,
maintenance/child support arrears.
#Q:
Can I enter into an IVA if I have already received a
Statutory Demand?
Yes. If the Official Receiver considers that an IVA
is more appropriate.
#Q:
Can I obtain an IVA if a Bankruptcy Order has been
made against me?
Yes. It is possible to annul a bankruptcy in favor
of an IVA.
#Q:
What happens if I don't keep up the payments on my
IVA?
If you default on your payments, the supervisor of
an IVA can initiate bankruptcy proceedings against
you.
#Q:
What happens once I finish paying my IVA?
At the end of the process the Insolvency
Practitioner will issue you with a 'Statement of
Completion', typically within 3 months of the final
payment. The Insolvency Practitioner will also send
a copy of this to the Insolvency Service so that
they can amend their records.
#Q:
Can I enter an IVA if I already have CCJs against
me?
You are not prohibited from entering into an IVA if
you have CCJ's against you.
#Q:
Does it make a difference if I am a homeowner?
It makes no difference whether you are a tenant or
homeowner or if you are still living with your
parents.
#Q:
Do I have to tell my partner?
You do not have to tell your partner if you are
entering into an IVA but it is more realistic to
think they will probably find out at some stage.
#Q:
Does an IVA cover all of my debts?
An IVA can only cover your unsecured debts and
arrears.
#Q:
What is the difference between a secured and
unsecured debt?
A secured debt is a debt secured against an asset
that you own. Typical secured debts will be a
mortgage, a secured loan, a car loan, etc. An
unsecured loan is any loan not secured on an asset,
such as a bank overdraft, a personal loan, a credit
card, store card, etc.
#Q:
Do creditors have to accept an IVA?
The decision to accept or reject an IVA is made by
your creditors at a creditors meeting. You need to
have 75% of the value of those that vote accept the
offer being made for the IVA to go ahead. If this
figure is not achieved then the IVA will fail.
#Q:
Can an individual creditor refuse to accept an IVA?
Yes but it will only have an adverse effect if that
creditor has more than 25% of the value of those
creditors voting at the creditors meeting. If they
do not then they become bound by the majority vote
and have to accept the arrangement.
#Q:
Will the IVA prevent my creditors taking further
recovery action?
Yes. Once the IVA is in place, you are protected
from further recovery action by your unsecured
creditors.
#Q:
What if my circumstances change?
If you are unable to maintain repayments because of
changed circumstances, your supervisor in the IVA
can request a variation to reflect your new
circumstances. Likewise if you have good fortune you
will be obliged to tell your supervisor.
#Q:
Can I cancel the IVA once it is set up?
No. An IVA is a legal process and, once it is set
up, you cannot just cancel it if you change your
mind.
#Q:
What happens if I just stop paying into the IVA?
If you fail to keep to the arrangement, your
supervisor in the IVA has the right to file for your
bankruptcy.
#Q:
How long does it take to set up an IVA?
It takes typically between 6 and 8 weeks to set up
an IVA.
#Q:
Will interest and other charges be frozen while the
IVA is being set up?
No, but any interest and charges will be included in
the IVA if it is approved.
#Q:
Can a creditor take further recovery action before
the IVA is approved?
Yes, but you can apply to the courts for an Interim
Order to stop any of your creditors taking further
recovery action until the outcome of your creditors
meeting is known.
#Q:
What happens if the IVA is not approved?
You will have to come to an informal arrangement
with you creditors to repay your debts or declare
yourself bankrupt.
