Stay in IVA or would BR be better??

oliviarosejackson

Hi everyone,

Was wondering if you could offer me some help?? I am currently 13 months into my IVA with Blair Endersby. My I&E is currently being review by them, as they had my income at a higher rate than is was, due to me doing overtime when the IVA was being set up. I was paying £311pm, but since reviewing everything, they have come out that i only have £150pm spare. But i am still waiting to see if my creditors agree to this.

My question is, am i better sticking with the IVA, or going BR. As i feel i was missold the IVA, as i have no assets. As i still live at home with my parents. I also have a 5yr old daughter. I am 24yrs old and work part time at Tesco on the checkouts. I know that the IVA stays on my records for 6 yrs after the IVA has ended, whereas BR goes off your file after 6 yrs. I would like to know which is going to be best for me in the long run, as i am still young (well not that young). I would like to buy my own house one day, get a debit card, etc.Which is less damaging to my credit file, or are IVA and BR exactly the same thing?? I shall post my SOA to show what my IVA allows me each month and if you could help to see what the difference to my out goings BR would be.

Thanks for taking the time to read this

oliviarosejackson

SOA, allowence within my IVA:

Income: £550pm
Child B : £75.20pm
Tax C : £450pm
= £1075.20pm

Out goings within my IVA:

Rent/Bills :£300pm
Food/toiletries: £300pm
Travel: £150pm
Clothing/hair: £50pm
Phone: £30pm
Holidays/xmas: £75pm
= £905pm

Surplus = £175pm, this is a rough guide though.

What would the difference in allowence be with BR?

Thank you everyone for taking the time to read through this thread. Any help/advice would be greatly appreciated.

Also, i did speak to CCCS and was told to stick with the IVA. But i was not happy with the service that i received from them. It was not very helpful at all.

Also, one last point, my dad took out a loan for a car for me, which is £126pm over 5yrs. How would this be affected with in BR?

So_Sad_Angel

Hi ORJ

Don`t just relay on CCCS ...try Nat debtline & CAB ( CAB have been fantastic for me!) if you feel you have been missold then you must get as many 2nd opinions as possible. Obviously an IVA is earning the administrating company a fairly good `profit` & they will want you to continue. However depending on how much you owe (I don`t know this) & the fact that there is no potential equity payout at the end (ie no property or other asset)...then you are right to question the IVA .

Try the NED-CAB website & look at their debt section...it is very comprehensive & worth checking out.

Take care,

Angex

oliviarosejackson

Hi, thanks So Sad Angel. I am going to try speaking to a few of the other charities. Wish i would have done this in the first place. But i just wanted to get things sorted asap, as i was getting lots of phone calls from my creditors. So i just went with what the first company tha offered me help. I thought that they wanted to help. How wrong was i.

My debts are:

Natwest loan £20,000 over 7 yrs.
Natwest overdraft £1000
Natwest credit card £400 - limit was £300!!!!
Next Directory £300
New Look store card £450

So all in all i owe around = £25,750. That is not including interest either!! Its crazy when you see it written down. Makes me wonder how i got into this mess in such a short space of time.

nomis131276

from the figures you posted you don't seem like an ideal IVA client, especially if you have no assets to protect can't see an advantage over BR. the Official receiver will only let you keep a car if its needed for essential journeys ie work and sometimes a basic domestic need and even then only up to a value of £2-2.5k. even if you argued its your dads it's likely it could be at risk. even so I would say you look like a BR case to me, you do have to wait for your IVA to be put on the failed IVA register before you can go BR tho

So_Sad_Angel

I may be wrong but I though you had to have at least £200 a month to enter an IVA....I went to private co`s earlier this year & felt that I was being the subject of `hard-sell` so I backed off (thankfully).

The pressure that creditors levy is very intense...even if you have only missed one month!! so don`t worry about what has passed....more to ensure that the future is workable for YOU!!

When you speak to CAB ask for appt with a debt specialist. Nat Debt line give immediate advice & really know their stuff. Don`t discount CCCS...I would complete their `debt remedy online` & see what the outcome is. Make sure you are realistic with your budget...ie dentist/opticians/pet costs/insurance etc.

Hope helps,

Angex

oliviarosejackson

Morning,

Thanks normis131276. What happens if you do not mention the car?? Would you still have enough in your budget to cover it?? It soon will be essential, as i am in the proccess of getting a new job. Which requires me to have a car, as i will be caring for the elderly in their homes.

Thanks again So Sad Angel. No, i have not been told that you have to have at least £200, then again thou, the company that i am with are not very helpful! When i rang them up at the start for adive, they made it out to be that BR would be a terrible decision to make. What i was advised when my I&E was review was that i only had £150 spare per month, so to change my standing order to that amout and then wait and see what the creditors said. I have not missed any payments, which i was told would go in my favour. But they were probably just saying that to fob me off.

I am going to speak to all of the charity helplines and see what they advise for me. I just wish someon would tell me what to do. I am terrible at making decisions. I always worry that i am doing the wrong thing.

Thank you agin for all of your help and advice, it really is so greatly appreciated