Should I default before starting an IVA?
Hi
Thank you all previously for your responses. I have concluded that we must go down an IVA route and I honestly feel better already. They say admitting it is the hardest part!
Just one thing. Our total monthly min repayments on all our loans/credit cards is 1700. Most will come out on 1st Feb. They will be paid using an overdraft. Should I cancel them all now and start defaulting?? It would be like borrowing from Peter to pay Paul. Scared of defaulting though as up until now we have somehow managed to keep afloat. Not any more 😯
Any advice greatly appreciated x
Thank you all previously for your responses. I have concluded that we must go down an IVA route and I honestly feel better already. They say admitting it is the hardest part!
Just one thing. Our total monthly min repayments on all our loans/credit cards is 1700. Most will come out on 1st Feb. They will be paid using an overdraft. Should I cancel them all now and start defaulting?? It would be like borrowing from Peter to pay Paul. Scared of defaulting though as up until now we have somehow managed to keep afloat. Not any more 😯
Any advice greatly appreciated x
0
Comments
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I would, no point paying debt that will become subject to insolvency is there.
Nothing to be scared of, what is it you think they will do ?
When I started my IVA I was brassic, I tried a DMP. At first, wasn’t working for me, so went the IVA route instead, debt collection takes a very long time, it could be many months or even years before any court action were to happen.
People think if you miss one payment you’ll be dragged into court kicking and screaming, No, doesn’t work that way, debt collection is more of a tortoise, than a hare.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
I agree with sourcrates. The only thing I would say though is to keep the money, or as much of it as possible, to one side incase your IVA is rejected or you chance your mind. That way you still have the money to brig your arrears up to date. Whilst this may seem unlikely now you never know!0
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