IVA guidance please

moneysavingplumber

You can remain as a self-employed sole-trader with bankruptcy but I would not have been able to keep my trade credit accounts (absolutely crucial in a materials based business like plumbing and heating), my vehicle probably would have been downgraded (again, sounds like nothing but makes a big difference in this type of trade), and the stigma may have affected my trade and goodwill amongst suppliers and associates.

I had a Nationwide Flexaccount with cheque book throughout, was allowed credit for mobile phone, insurance instalment plans etc which were credit agreements approved by my supervisor.

I certainly wasn't charged an upfront fee, my first six months payments were at a higher rate but that was to cover tax liabilities which is standard.

I really did look thoroughly at all the options and the IVA was absolutely right for me but I accept it isn't for everyone.

Just as a note, the company that I dealt with specialise in IVAs for the self-employed (it was actually my accountant that recommended them).

I'm sorry to hear yours ended, and yes I did worry occasionally that if mine failed I would be up the creek without a paddle, but I was fortunate that I was always able to make the payments and complete. i would have probably felt as you do in your circumstances.

Rylynn

I can see this was right for you, as you feel it was right for you. I also realise how hard it is for BRs to remain credible if self employed etc.

As said it is right for some and most certainly not right for the majority of people taking them on, not only is that my opinion but the CABs, and Martins thread on it here states only right for 3 per cent of people, I do believe that.

Having said that the word BAKRUPT terrifies people, IVA does not. People worry about their names being in the paper, I have nothing to lose by that, my pride, what the hell, I really needed peace of mine not pride.

I just wish some of these IVA companies would give a bit more impartial advice but they are out there to make money. Problem is more and more IVAs are failing which means they may have made their money but the debts have hardly been made a dent in.

As you can see I went into one, in some ways I feel proud I tried, but I had no crystal ball to see my future illness.

I am pleased to hear from someone who has got a successful story. As it is all about balance here, what suits one may not another.

RL

moneysavingplumber

The stigma of bankruptcy as little as six years ago was far greater than it is now, and the discharge rules for bankrupts only changed around the time I entered my IVA, I think you were still looking at 3 years at that time, maybe even 5. I am certainly aware of unscrupulous firms taking on IVAs that are unsuitable and unlikely to succeed, but I'm convinced the firm I went with were completely above board and their behaviour throughout reflected this. I certainly hope you're able to move on now and I can understand your frustration having paid into the agreement only to have it failed and lost that money. Good luck.

Rylynn

Yes it was minimum of 3 years, it had altered not that long before I went into the IVA.

I think things like this credit crunch will only make the stigma less, as more and more people are going to go BR. The stigma does not worry me, my sanity however does.

I am moving on and in doing so hoping to help people here with support as this site was invaluable this past few months.

I think it is very hard to make decisions when under such stress as well, anything that seems like a way out is a blessing, which is why these bad companies should be shot.

1_step_closer

Hi everyone

Thank you for your posts, they make very interesting reading. I can see both sides of it and firmly believe that an IVA is for me as I do fall into that 3%. I have read everything I can get my hands on including bankruptcy and def feel much calmer about it al now.

Pay plan have been very helpful so far with me so until "the" meeting I will wait and see.

Thanks again for your advice,

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1_step_closer

I've been moved to this new forum part!

Hello!

Well all my paperwork is in and I have a call on Monday (will let you know what that is about). I have income and expense forms coming to me then it is a case of waiting for the meeting I think.

The letters and phone calls have begun and surprisingly egg were the "nicest"! Obviously they want their payments but they did include a leaflet detailing DMPs IVAs things like that. and their letter was very politely worded too. I am not worried about the letters or calls in the slightest, the way I look at it, is these people have a job to do and me being rude or hanging up on them wont help. I would hate to do their job and they work crazy hours as well and I am sending them very polite letters asking them to contat Payplan.

The hardest thing was picking up that phone and making that initail call. Some of my work mates know and have been very supportive too.

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dazzle21

I just wanted to wish you the best of luck, I have an IVA with payplan and have recently made an ammendment to it due to a change in my personal circumstances, they are really helpful and as long as you are honest and sometimes a bit blunt they seem to try to assist you in any way they can. Keep us posted, and remember you're over the first hurdle by admitting the problem and doing something about it.

1_step_closer

Thank you! I certainly will keep you all updated. I do realise many fail with IVA but I am just as sure that many succeed!

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Rylynn

I hope your IVA passes, mine failed the first week, and I attended it as well, that is when I should have thought twice! it did pass the following week, but by then Payplan knew I would go Br and I think they made sure the creditors who had not bothered to vote knew that, and then they voted to pass it.

I hope it all works out well, and you pay for the five years and are then debt free again.

I guess you already know that and IVA carries the same credit problems as BR, you will find it very hard even after it is over in 5 years to get any. Not that I want any ever again, but not sure that had been mentioned here.

1_step_closer

I am aware about the credit problems.....................and in a way I am glad as I dont ever intend getting into this mess again!

Just want to add I wont be around for the next few days, my gran passed away and the funeral is this week.

Take care all

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