IVA acceptance

Legacy_user

Hi all,

The computer ate my last post, so I will summerise below!

I have over the last 3 months taken what is my dream job. However the cost of travelling has risen by over £300 a month, combined with the fact that I have taken a £200 a month pay cut has driven me over the edge.

We were considering BR, but we like our house and it would be sad to leave. After all the essentials and clothing etc is paid for, it leaves me with £100 a month.

So looking at IVAs, I was thinking this was an ideal solution.

I can afford to pay the required amount
I have a steady job, and its all going well
If I pay my creditors off, over the 5 years, all the creditors would get approx 75% of the money.

However I have not yet fallen behind on the repayments, bar 1. Would I be rejected for doing something before it gets too bad. It seems to be the ideal solution to my mind.

Ta 13000

alwaysonthego_2

IVAs are only suitable for a very small minority of people and should be seen as last resort. The cost of setting up a IVA can be very high and if you miss out on any of the payments it could result in Bankruptsy.

Can you list your debts? It maybe worth trying to negotiate lower monthly payments with your creditors.

Deep_In_Debt

Hi
Firstly I would recommend seeking advice from National Debtline, CCCS and CAB - all free, non judgemental and impartial.

Have you read Martin's guide at the top of this forum, on IVA's? They are only suitable for a small percentage of people and only go for one via a charity. Also, a lot can happen in 5 years...I thought I'd never lose my job as I'd been with my company 12 years and got made redundant recently or end up being on my own in the last year so there is no way I'd be able keep up the repayments now ...I nearly took out an IVA last year. Glad I didn't in the end. They are not that flexible and you are stripped back to the bare minimum for living on. Have you considered a DMP?

Do seek advice from the companies I have mentioned before going ahead.

Good luck.

System

I have indeed read Martins guide.

However if I were to go down DMP route, I'd still be paying people off in 16 years time (because i'd have to go on low start with a view to upping payments, but there is no chance of that!) I think I would actually prefer to go bankrupt than still have no real pension to speak of in my mid 40s.

If you take into account that also that £100 I have spare is what would have been going into my pension, it is not really ideal.

I did actually do a CCCS remedy form, so my budget really is cut back to the bare minimum.

Deep_In_Debt

Hear what you are saying - debt free in 5 years or, in my case, a dmp for 9 years. However, I've managed to reduce the 9 years to 5 years in 6 months already so a dmp is better for me as I have a lot to lose through BR. IVA is not always the answer.

Just saying that a lot can happen in 5 years...I never thought that I'd lose my job of 12 years or my relationship of 10 years but it all happened within a few months...so by now, I may have paid into an IVA for about 6 months although only clearing a few months of debts as the fees for setting them up take a lot of money, so the first couple of months you are paying fees to the IP and not making any headway into your debts.

Do think carefully about it. If you prefer bankruptcy, it may be better to go for it rather than an IVA which often end in BR anyway and you would have paid out extortionate fees in the process.