About to enter IVA - INFO PLEASE

yrkpud

Hello,

I am about to enter an IVA as I have £74k of debts (through several credit cards and an overdraft).

I have been in touch with the CAB and the National Debtline and wandered which one would be the best one to use? There also seems to be quite a few mentions of the CCCS on this forum. Would I be better to go through this one?

Finally if someone could explain what happens with an IVA once it is started (the whole process) it would be very much appreciated as I am starting to get really nervous and anxious about it.
Thanks alot!:T

nic1171

Hi I used the CCCS for a few years and found them very helpful, this is where they do a debt management plan with your creditors so they cant hasle you. However a lot f creditors still charged interest so although I was paying £300 a month only a small portion was being paid off the whole debt. I decided to go for a full and final IVA didnt have much choice actually as i had equity in my property so had to release it but ended up paying £22000 off approx £36000 of debt but at least after I am now debt free. Its still difficult to get credit as it remains on my credit file for 6 years but the alternative was paying a montly payment for many years to come. The relief afterwards is immense but during the process the creditors do ring lots but if you say there is an IVA going through they arent supposed to hassle. It was a long process but mainly because of my mortgage company taking ages. Anyhow i think its the best thing for me, Good luck.

emma280981

I am just entering into my second year of an IVA, I went with the company Money Debit and Credit. I will start from the beginning for you….

Firstly, I had to provide Money Debit and Credit with information regarding all my debits that I owed. I had to supply current bank statements and credit card statements for all my accounts and cards. I had to cut up all my cards and open a brand new bank account, just a simple bank account with no overdraft facility or anything, I went with Natwest. I had to fill out an income and expenditure form, which Money Debit and Credit helped me do over the phone. They then worked out what I could realistically afford to pay back each month. I set up a standing order with my new bank to pay Money Debit and Credit the said amount each month; this amount was split across my creditors. Money Debit and Credit contacted each of my creditors and offered them the amount, if the majority of creditors accept the amount; your IVA should be set up. One of my creditors didn’t accept the IVA offer, but because the majority did they were made to accept it also. All correspondence from my creditors stopped, I didn’t get any more phone calls or letters from my banks or credit card companies. I felt my finances were finally under control. I was paying back a fraction of the amount that I was paying to my creditors individually. After 6 months I was sent a letter asking me to confirm if I had any changes in my circumstances, i.e. change in income etc. As I didn’t have any changes my monthly installments stayed the same. After a year I was sent a review which stated that my creditors were happy with the arrangement to continue and it is.

You need to be aware that any changes in your income need to be told to the IVA company, just incase your payments need to be adjusted. Also you must be aware that this will effect your credit rating, I’m not sure how long it lasts that you can’t get credit for, but I wasn’t bothered about this, I was just happy that I finally had my finances under control. I know your credit rating is affected whilst the IVA is in place, but I’m not sure if it is then “good” once your IVA is over or if it continues as “bad” for sometime after. When I say it affects your credit rating, you will be unable to get an overdraft, mobile phone on contract (although if you are on contract at the moment this won’t be effected) store cards, credit cards are all unobtainable, but I think this is a good thing if anything!!!

Please note there are loads of really dodgy IVA companies out there, so make sure you look into the one your going with, or go with one that has been recommended.

The thought of setting an IVA up seems really time consuming and stressful, but Money Debit and Credit helped me make it as stress free as possible and I can say now that it was well worth it!!

I hope this has helped put your mind at rest a little bit.

Regards Emma