some IVA help, please

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hi all

im after some advice on IVAs, ive been reading different info from different sources but would like a definitive answer to my questions if possible.

im looking for ways to help my new GF, she took out a 16.5k unsecured loan last year wen she was with her ex, he had bad credit so getting the loan in her name got them a decent interest rate, she also has 2k on credit cards in just her name, this was fine when they were together as he paid his half etc, when they split he still continued sending her the money to help pay the bills (470pounds a month) but has recently stopped doing so as he now has his own flat, she is now struggling to make the payments (she hasnt missed any - yet) as she also has rent to pay and household bills, transport to work etc etc and the stress is making her ill

she looked into bankruptcy but she works at an insurance firm and needs FSA clearence, would an IVA help her out ? i read that normally people have to be at least 10k-15k in debt, does this include interest (her settlement figure from her loan is 28k atm)

any help/advice would be much appreciated

Comments

  • bubblesqueak
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    Isn't an IVA treated much the same as bankruptcy anyway? Might be worth looking into. Can she talk to her HR dept. and explain how she's been left in this mess by her ex.? I think personally I'd talk to somebody respectable about it first. IVA's are not for everyone, she might be able to extend the term of the loan to lower the payments without then getting adverse credit. CCCS or CAB would be worth a try I thnk.
  • Airwolf1
    Airwolf1 Posts: 1,266 Forumite
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    At her place of work, is she a member of a union, or is there a welfare officer? If there is, it may well be worth seeking their input as to whether it would affect her job before doing anything.
    My suggestion and/or advice is my own and it is up to you if you follow it, please check the advice given before acting on it.
  • skintandscared_2
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    I think she'd definitely benefit from speaking to either a debt advisor at the CAB or one of the free organisations PayPlan or CCCS. A debt management plan (DMP) is a lot more flexible than an IVA and wouldn't affect her job at all. The problem with an IVA is that if your circumstances change and you can't make payments or miss a couple the creditors can make you bankrupt anyway. There are also two cases on this page where people have paid into IVAs for a couple of years and then the IVA has failed, where ALL their payments have gone to pay the solicitor's fees and NOTHING has gone off their debt. :mad:
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