should I even have an IVA?

kgkev

I had about 35k of credit card & Bank loan debt in 2004

I contacted spectrum who sent a man round and he suggested an informal agreement that they would set up. he went through a I&E form and set an amount of £500 a month. We paid them an amount (about £350) for 3 months then went to the £500

This was extremely difficult to meet each month but we ate pasta for a few days at the end of each month and kept up with payments.

After about 10 months we had a phone call from someone who was independantly assessing these agreements and he suggested that we move to an IVA. The I&E would be more formal but the plan would last 5 years rather than the current 8.

I filled out the forms and was agreed for an IVA to start in Jan 2007 for £400/month

Due to a car breaking down I missed 1.5 months payments and couldn't keep up with all my 50% of my bonus payments. At the end of the first year my missed "bonus" payments were cancelled and my monthly amount was reduced to £350. I have just done my 3rd I&E and have put forward an amount of £395 for the next year. This will be reviewed in January


this all seems to be working. The company that is doing the IVA are amazing - It feels like I am there only "customer". I phone up and speak to the IP's assistant and she knows my case and the problems we have had straight away. (i have never even been on hold)


But should I have gone for a bankruptcy? I don't have any assets. I have 1 car which I paid £200 for. I live in a housing !!!. property and everything else I own is low value and "essential"


I think I went for the IVA because I would like to get a mortgage one day and thought that a bankrupcy would make this impossible? Is this true?? Do I have more chance of getting a mortgage after an IVA rather than a Bankruptcy?

RAS

When you had the credotors meeting, what percentage was set for the IVA?

Wouldbeplumber

If you have no assets the bankrutcy is always an option. Getting a mortgage at the moment is difficult even without an IVA or BAnkruptcy under your belt. With regard to an IVA you do what you think is right at the time and you sort of need a crystal ball to predict the future. I would say one thing and that is you didnt need to pay a company to set up an informal agreement in the first place. There are a couple of firms who do this for you totally free. The pecentage agreed at your creds meeting could have a bearing on what you pay in. If there has been a minimum dividend agreed then reduced payments mean you may not reach it. An estimated dividend is best.

Dr_Hook

How an IVA will affect a future mortgage application really depends on individual lenders' policies and lending criteria. AFAIK they tend to be perceived in a slightly better light than bankruptcy, but I believe that the majority of mortgage lenders have a question on their application along the lines of "Have you ever entered into formal insolvency proceedings?", which encompasses both IVAs and bankruptcies, so it is likely that they will have to be disclosed even after they have dropped off your credit file.

Having said that, to an extent the point is moot - the decision has been made and you have already entered into an IVA. The best thing to do now would be to keep up with the IVA, if you fail it now it is likely that your payments so far will go towards the IP's fees and you'll be back at square one in terms of your debts as the debt not covered by the IVA won't be written off until it is successfully completed. Large debts and an unsatisfied IVA will undoubtably be viewed by prospective mortgage lenders as less desirable than zero debt and an IVA marked as 'satisfied'.

MIVAA

Bottom line is that the IVA is much less impactive on your future mortgage possibilities than bankruptcy.

Even now in this credit crunch economy, you can get a normal high street deal, with a normal prime lender, 3 years after your IVA has completed successfully.

After 3 years from satisfactory completion lenders no longer take the IVA into account.

kgkev

Yes I do have a fixed % to pay about 28p in the £1 but If I get my monthly payments up to £450 in the last year this will be cleared so I won't have to extend it.

At the time I was desperate and saw the add on Teletext. The man came and seemed to be the answer to all our problems. It didn't take long for one of the people I owed money to to point out that I could have gone to CAB.

Not planning on a mortgage soon but its good to know it is still possible.

Thanks for the advise.

Sugarbon

Consider your health.My dad was on the verge of going bankrupt .Instead he insisted on paying all his debts off for which i am very proud of him.In 18months time he would have been clear but 10 weeks ago he died of heart failure due to stress.What was the point? Good luck

fatbelly

This factsheet gives info about bankruptcy.

There's a link-through to one about IVAs, with pros and cons. ND don't make money out of either option so can give unbiased advice. May be worth a phone call.

ads910

go bankrupt dont give the creditors sod all, its there fault for giving credit away so easy in the first place, then in time when the economy gets better and there basically throwing money at people again your get your mortgage

emma-uk

go bankrupt dont give the creditors sod all, its there fault for giving credit away so easy in the first place, then in time when the economy gets better and there basically throwing money at people again your get your mortgage

I could have done that but ultimatley, It's as much my fault for taking the money given to me and spending it on crap as it is the banks for giving it to me. I chose not to go bankrupt as I wanted to do the right thing for me and take responsability for the choices I made instead of blaming everyone else but myself. I am extremley happy I made this decision and can not wait till the day I make my final payment. (Next year - wow its gone quickly!!)

ads910

i went with my cousin to welcome finance when he got a loan. they did a check on him there and then and it come back he had 20k of outstanding debt, yet they still loan him 3000 at 59% apr, after making no payments on the loan what soever he went to car giant to get a car on finance, car giant said no as his credit was terrible, 2 days later he gets a phone call from car giant saying there special finance dept can help, he goes back the next day and gets a 12000 car on finance, guess who gave him the finance...................yes you got it welcome finance.


if you ask me irresponsible lenders especially sub prime deserve what they get when people dont pay them back!!!