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  • FIRST POST
    • Jason5354
    • By Jason5354 21st Sep 16, 9:12 PM
    • 3Posts
    • 0Thanks
    Jason5354
    Am I doing the rite thing IVA
    • #1
    • 21st Sep 16, 9:12 PM
    Am I doing the rite thing IVA 21st Sep 16 at 9:12 PM
    I am currently looking into getting an IVA set up,
    My income is £800 a month
    And paying out £400 a month in credit cards and catalogue.
    After bills I'm left with around £20 a week.

    I'm not sure I'm doing the rite thing, it would take me 11+ yrs to pay off all debts that's not including interest.

    I'm looking for advice and peoples good/bad experiance with IVAs.
Page 1
    • sourcrates
    • By sourcrates 21st Sep 16, 9:33 PM
    • 7,508 Posts
    • 7,453 Thanks
    sourcrates
    • #2
    • 21st Sep 16, 9:33 PM
    • #2
    • 21st Sep 16, 9:33 PM
    Hi,

    Impossible to say without knowing more information.

    IVA's are usually only suitable for large debts, 30k plus, as there are a lot of fees associated with an IVA.

    How much do you owe in total ?

    Are you a homeowner ?

    For free debt advice please call National Debtline on
    0808 808 4000
    Monday to Friday
    9am to 9pm
    Saturday 9.30am to 1pm
    • Concerned75
    • By Concerned75 21st Sep 16, 9:39 PM
    • 115 Posts
    • 66 Thanks
    Concerned75
    • #3
    • 21st Sep 16, 9:39 PM
    • #3
    • 21st Sep 16, 9:39 PM
    If you're only left with £20, not including food and personal expenses, you're either paying the wrong amount and it wasn't set up correctly, or you've already deducted those expenses.
    Would need to add further information on your situation.
    • Jason5354
    • By Jason5354 22nd Sep 16, 1:31 PM
    • 3 Posts
    • 0 Thanks
    Jason5354
    • #4
    • 22nd Sep 16, 1:31 PM
    • #4
    • 22nd Sep 16, 1:31 PM
    I have a partner that pays for food while I pay the bills.
    The £20 a week is after paying the bills.
    Usually tho go in to unplanned over draft
    Last edited by Jason5354; 22-09-2016 at 1:35 PM.
    • Jason5354
    • By Jason5354 22nd Sep 16, 1:34 PM
    • 3 Posts
    • 0 Thanks
    Jason5354
    • #5
    • 22nd Sep 16, 1:34 PM
    • #5
    • 22nd Sep 16, 1:34 PM
    I owe 13k.
    The company I've inquired about the IVA said I'm eligible for one and instead of paying out 1/2 my wage I will only pay £100 a month if all goes through
    • Angry Bear
    • By Angry Bear 22nd Sep 16, 1:45 PM
    • 1,775 Posts
    • 4,163 Thanks
    Angry Bear
    • #6
    • 22nd Sep 16, 1:45 PM
    • #6
    • 22nd Sep 16, 1:45 PM
    And paying out £400 a month in credit cards and catalogue.
    ....
    it would take me 11+ yrs to pay off all debts that's not including interest.
    ...
    Originally posted by Jason5354
    I owe 13k.
    Originally posted by Jason5354
    Something doesn't add up.
    It would be worth filling in a statement of affairs (http://www.stoozing.com/calculator/soa.php), then running your debts through the snowball calculator (http://www.whatsthecost.co.uk/snowball.aspx).

    Then I'd recommend calling StepChange or national debt line for advice. As they're charities, you'll get unbiased advice rather than a sales pitch for an IVA.
    Do you not know that a man is not dead while his name is still spoken?
    ― Sir Terry Pratchett, 1948-2015
    • Muttipops
    • By Muttipops 22nd Sep 16, 2:00 PM
    • 238 Posts
    • 221 Thanks
    Muttipops
    • #7
    • 22nd Sep 16, 2:00 PM
    • #7
    • 22nd Sep 16, 2:00 PM
    DO NOT GO WITH A COMPANY YOU HAVE TO PAY TO ADMINSTER AN IVA FOR YOU!!!


    Did I shout that loud enough?!!!!!!


    Angry bears' advice above is spot on!
    • sourcrates
    • By sourcrates 22nd Sep 16, 2:08 PM
    • 7,508 Posts
    • 7,453 Thanks
    sourcrates
    • #8
    • 22nd Sep 16, 2:08 PM
    • #8
    • 22nd Sep 16, 2:08 PM
    DO NOT GO WITH A COMPANY YOU HAVE TO PAY TO ADMINSTER AN IVA FOR YOU!!!


    Did I shout that loud enough?!!!!!!


    Angry bears' advice above is spot on!
    Originally posted by Muttipops
    All IVA's have fees associated with them unfortunately.

    The question is weather an IVA is suitable or not, if the OP is not a homeowner they should be looking at a debt relief order first of all.

    All it may require is a more accurate budget.
    Last edited by sourcrates; 22-09-2016 at 2:11 PM.

    For free debt advice please call National Debtline on
    0808 808 4000
    Monday to Friday
    9am to 9pm
    Saturday 9.30am to 1pm
    • Muttipops
    • By Muttipops 22nd Sep 16, 2:20 PM
    • 238 Posts
    • 221 Thanks
    Muttipops
    • #9
    • 22nd Sep 16, 2:20 PM
    • #9
    • 22nd Sep 16, 2:20 PM
    All IVA's have fees associated with them unfortunately.

    The question is weather an IVA is suitable or not, if the OP is not a homeowner they should be looking at a debt relief order first of all.

    All it may require is a more accurate budget.
    Originally posted by sourcrates



    Oops and apologies for my ignorance in this matter, i will store that info away in my brain for future use, sourcrates.
    I paid into a DMP abroad and they fleeced me and were incompetant, so I have an aversion to paying for debt help and didn't know the realities of IVA's in the UK; I must do my homework!!
    • sourcrates
    • By sourcrates 22nd Sep 16, 3:24 PM
    • 7,508 Posts
    • 7,453 Thanks
    sourcrates
    Oops and apologies for my ignorance in this matter, i will store that info away in my brain for future use, sourcrates.
    I paid into a DMP abroad and they fleeced me and were incompetant, so I have an aversion to paying for debt help and didn't know the realities of IVA's in the UK; I must do my homework!!
    Originally posted by Muttipops
    Yea DMP's arnt regulated so a private company can change whatever they like.
    Every other debt solution is regulated, and has an associated fee set by parliament.

    The problem with an IVA is the fees an IP will charge for administering your arrangement, they can amount to a quiet a few thousand pounds, so unless you owe say 30k plus, there will be very little return for the creditors, and they won't approve it.

    The OP owes 13k, at a guess I would say around 8k of that would go in fees, leaving very little for the creditors, so it's unlikely to be approved, so would not be suitable for them really.

    Some companies try to flog IVA's when they are not the right solution because of the money they can make
    Last edited by sourcrates; 22-09-2016 at 3:29 PM.

    For free debt advice please call National Debtline on
    0808 808 4000
    Monday to Friday
    9am to 9pm
    Saturday 9.30am to 1pm
    • Muttipops
    • By Muttipops 22nd Sep 16, 3:41 PM
    • 238 Posts
    • 221 Thanks
    Muttipops
    "Some companies try to flog IVA's when they are not the right solution because of the money they can make " Last edited by sourcrates; Today at 2:29 PM.


    Even fleas must have fleas, I suppose.
    Last edited by Muttipops; 22-09-2016 at 3:57 PM. Reason: punctuation
  • National Debtline
    Hi all and in particular Jason5534


    There are some very broad statements being made here about IVAs without anyone other than Jason himself knowing the full picture.


    IVA fees can vary significantly from one arrangement to another, depending on the complexity of that arrangement and the scale of the debts/assets involved. As such, there is no hard and fast minimum debt level for entering an IVA, though it's unlikely to make much sense for most who owe below £10K. There will be people out there who right now are on IVAs for debts of £13K and less, I guarantee you.


    None of this is to say that an IVA is in this case Jason's best option, just that it isn't necessarily out of the question based on what he has told us.


    Jason - you really need to either post a Statement of Affairs here (see link helpfully posted above by AngryBear) or consult one of the free debt advice charities. Until then, all you'll be getting are general observations like mine without any indication of whether an IVA is actually right for you.


    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • sourcrates
    • By sourcrates 22nd Sep 16, 4:35 PM
    • 7,508 Posts
    • 7,453 Thanks
    sourcrates
    Hi all and in particular Jason5534


    There are some very broad statements being made here about IVAs without anyone other than Jason himself knowing the full picture.


    IVA fees can vary significantly from one arrangement to another, depending on the complexity of that arrangement and the scale of the debts/assets involved. As such, there is no hard and fast minimum debt level for entering an IVA, though it's unlikely to make much sense for most who owe below £10K. There will be people out there who right now are on IVAs for debts of £13K and less, I guarantee you.


    None of this is to say that an IVA is in this case Jason's best option, just that it isn't necessarily out of the question based on what he has told us.


    Jason - you really need to either post a Statement of Affairs here (see link helpfully posted above by AngryBear) or consult one of the free debt advice charities. Until then, all you'll be getting are general observations like mine without any indication of whether an IVA is actually right for you.


    Dennis
    @natdebtline
    Originally posted by National Debtline
    Just going on my own experience here Dennis.

    Total debt was £57,000

    Due to unforeseen circumstances repaid £16,500

    IP's fees and VAT amounted to nearly £9000, so creditors only got around 7k between them.

    For free debt advice please call National Debtline on
    0808 808 4000
    Monday to Friday
    9am to 9pm
    Saturday 9.30am to 1pm
    • fatbelly
    • By fatbelly 23rd Sep 16, 10:41 AM
    • 9,864 Posts
    • 7,400 Thanks
    fatbelly
    Hi guys

    IVA fees that insolvency practitioners charge have become more controlled in recent years.

    But unfortunately there are still lots of IVA lead generators out there aggressively marketing these things while giving poor advice. Seems many are not UK based.

    The op needs to run his situation past an independent charity, and National Debtline would probably be the best of the bunch.
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