My experience and tips before taking and IVA

cutemum

Like so many already I would like to say a huge thank you for all of the positive posts regarding an IVA.

I am just about to speak to an IP about starting an IVA (through the CCCS who were sooooo helpful and friendly). I was very sceptical because of reading so many people's negative experiences. After separating from my husband & becoming financially responsible for everything I do believe it sounds the best option for me.

I would like to ask if people felt totally strapped for cash duting the whole five years. If this sounds like I want to use this as an easy way out- I do not. I do not spend a lot of money on myself & I really am budgeting carefully. I just would like to think I would have a small amount left over to do things with my children, buy the odd item of clothing for myself etc.

ciderwithrosie_2

I've just completed our review form to end the 2nd year of our IVA. A bit of a nervous time for me as I hate form filling anyway and I worry that they're going to ask us to start paying more money. It's stayed the same up until now £470 pm on a debt of £55k and I think I've managed to demonstrate (again) that we have no more surplus to increase payments. Don't have a mortgage to consider or any other assets.

Have to say, apart from the yearly angst it's been pretty good. Even though it's a private firm we're with they were recommended to me through the CAB and they've been very good. Just hope the next 3 years are as pain free.

As part of my T&Cs I'm allowed up to £500 credit, so I've kept on a clothing catalogue, the IP knows about it, hopefully this may go someway to improving my credit rating post IVA. On the advice of the CAB I switched bank accounts to Nationwide before my creditors were informed there was a problem. I was upfront with the advisor in Nationwide and explained why I needed to open an account with them and she was most helpful.

Some friends of ours also went into an IVA a month or two before us so we decided in 3 years time we're all going to go away for a few days to celebrate being DF.

regards CWR

trudij

Cutemum - its not all that bad really - the allowances are ok, and if you take the most allowed for each part of the SOA, and then budget, its not too difficult to get a small amount of savings - but be warned - theres not really any considerations for things like car bills or household things, so just be a little careful where it goes. the Old Style board on here,and the otehrs are good for making things go further, and its quite good fun really !!!

good luck !!!!

cutemum

Thanks for that, that is what I was hoping. However, was speaking to an IP today who really feels I should go down the route of BR. My head is all over the place. Each day I seem to be thinking about going down a different route. I hope I can make a decision soon and start the road to beeing DF.

sandalwood_2

Hello to everyone,would like some help & a bit of advice if I may....

Here goes....have been on a DMP since last June,going ok ish-a few creditors are still adding on interest and charges,got a letter threatening court action yesterday which made me call payplan and the woman there mentioned that we may be better off on a IVA
Me and my partner are around £43k in debt,we were ok paying it,but then I had to take a pay cut and she went on maternity leave,so we had to go onto DMP.

We have just found out she is pregnant again,so she will be going back to work in July,(after first lot of maternity leave)then off again in December for her second lot of maternityleaave for another 9-12 months looking after new baby!!! and the rate child care cost is,it may not be worth her going back to work

We are only paying £172 a month in to the DMP,the rate it is going we will have to wait till 2030 to have it all paid off
We do own a property,a one bed flat,which we were going to sell and move next year,but now we have to move now!!!

I was thinking of selling the flat,moving into rented for a few years,and the equity in the flat,around £20k,be used to go down the IVA route and pay off the creditors,the woman at Payplan said that they would probably accept this as the figure will be around 30 % of what I owe and the creditors would be happy with that,may just give them £15k and use the other £5k forrental deposit and stuff for new place.So I would sell,get into a rented place,then go on an IVA,so I would only have a rubbish credit rating for 5 years as apposed to the 20 odd years left on the DMP-unless I get CCJ and charging orders-which I will probably end up getting as the debt free date is ridiculous-and then it would be gone from my file(is this correct?)
And also,would an IVA cost me anything to set up? even though I am on a DMP with payplan?

As said,I have spoken to the woman at payplan,but wanted some advice from people who have "been there" so I can get a real feel of what we may be getting ourselves into

Thanking you all in advance

Max_1066

I've just completed a one-off IVA and it was def the best option. I was on a DMP with CCCS for 12 months before I realised it was a waste of time and money ... !!

As a general statement if you're on a DMP projected to last more than 5 years you have to SERIOUSLY consider an IVA. Your credit history is wrecked either way so why pay into a DMP then realise it was a mistake and switch to an IVA - you lose the money paid into the DMP plus the clock is reset regarding your credit history.

My advice is to do your research carefully and consider ALL the options including BR. However don't delay too long as it'll probably cost you in terms of interest.

Good luck everyone.