Is an IVA right for me ?

cosmic_dave · 30 December 2009 at 11:03AM

I bet this question comes up again and again, but we are really struggling. We owe about £25000 and I am now unemployed, my wife works part time, we are getting constant telephone calls and and letters chasing money we just do not have ! I see all those IVA ad,s on the TV and it all seems to good to be true so it probably is, I just don't know which way to turn.

Any advice would be good as I fear the pressure is now starting to effect our relationship and health

David

fermi · 30 December 2009 at 11:10AM

If you are unemployed, then an IVA is not going to be a realistic option.

Are you likely to work soon?

Do you have a property with equity?

cosmic_dave · 30 December 2009 at 12:01PM

Our house is in negative equity and I have just finished college retraining as a painter and decorator and am in the process of trying to get private work at the moment, I am in the middle of doing of distributing 5000 leaflets in the area I live to pick up some work.

fermi · 30 December 2009 at 12:23PM

In that case, I can't see an IVA being appropriate.

See Martins comments here: IVA Guide

Also: Non-profit Debt Counsellors' List

The wrong people to go to...

Avoid any debt help or loan consolidation companies that advertise on the telly or in some newspapers. Their job is to make money out of you, plain and simple. While in the short term their plans will make your payments lower, in the long run it'll cost you dear. Avoid them. Don't touch them. Don’t go near them.
I think this post from the Forum explains it better than I ever can:

"We, my wife and I, are on a seven-year plan with CCCS" (the Consumer Credit Counselling Service, one of my suggested agencies – Martin) "having recently changed from a commercial debt management company after hearing Martin on Radio 2's Jeremy Vine show. The simple action of swapping to the CCCS has shaved over two years off the length of our plan as the money we were paying the management company now goes to our creditors instead! Of course, that also means a financial saving of nearly eight grand over the term of the original plans 10 year period."

This includes IVAs and debt wiping companies. While they sound good, they're only for a few people. If either is for you the debt counselling agencies should suggest it.

You really need to talk to the debt advice agencies mentioned in that link and my signature.

They will help you work out what the best option is, without any bias that the IVA or other commercial companies have towards selling their "products".

cosmic_dave · 30 December 2009 at 12:51PM

Cheers for the advice I will do that, just had a letter from the bank this morning closing my current a/c and giving 14 days (from 21/12/09 lol) to pay my £500 overdraft or the will pass the debt to a collection agency, all this after I wrote them a letter explaining the situation and I hoped to be in a better position in the new year and pay the overdraft off. Thanks Yorkshire bank after 20 years banking with you I would of thought you could do better than that !

computershack · 30 December 2009 at 5:27PM

You can only get an IVA if you have a certain level of income. Someone who is on unemployment benefits is not going to have any spare income above what the regulations say is the basic requirements so you'd not qualify until you started working.

Tixy · 30 December 2009 at 10:37PM

Cosmic dave

Have you got another bank account elsewhere (preferably with a bank you don't owe any other money to?) if not then open one up to move your banking to. If you credit report is bad then ask for a Basic bank account as these don't need a credit check.

Then write to Yorkshire with a repayment prosposal to pay off £x amount of the £500 each month. (work out what you can afford bearing in mind your other costs and commitments - you may want to include an income & expenditure account to show you are offering all you can afford).

Is an IVA right for me ?

Comments

Confirm your email address to Create Threads and Reply

🚀 Getting Started

Categories

Is this how you want to be seen?

Get our FREE Weekly email full of deals & guides - and it’s spam-free