Looking at an IVA

james32_uk

Hi, I'm currently looking at applying for an IVA. I have some questions that I hope people on here can answer/have experience of:

1) What will my credit file look like in 6 years time? I'm led to believe it will be blank with no adverse info or any details about my IVA.

2) I have no wish to borrow any more unsecured money. However, I will be renting in this period and would like to know how easy it will be to pass any credit checks undertaken if I want to move into a new rented property.

3) My car is also on it's last legs. If it gives up the ghost, how likely would I be able to get a new one on secured loan/hire purchase?

4) There is no question 4

Thanks for any help you can give

ms_london

Is an IVA the best option for you? Have you been given this advice? Perhaps if you post your SOA we can advise you on what we think might be best?

I am not au fait with IVA's, but I am sure others will be along soon to help.

Ms_london xx

james32_uk

I think an IVA is my only option. I have unsecured debts well in excess of the minimum required to apply for an IVA and am in a position where my take home pay is equal to my rent plus minimum credit repayments.

I dont see any benefit in a Debt Repayment Plan which would take many more years to satisfy.

ms_london

james23_uk wrote:

I think an IVA is my only option. I have unsecured debts well in excess of the minimum required to apply for an IVA and am in a position where my take home pay is equal to my rent plus minimum credit repayments.

I dont see any benefit in a Debt Repayment Plan which would take many more years to satisfy.

A personal choice I suppose. Who does see any benefit in a Debt Repayment Plan that would take years to satisfy? Noone. But perhaps it's the ones who feel that they should repay what they spent who choose to do it!

I am sure that someone will be along soon to advise you & answer your questions.

I am afraid that I can only advise on how to budget & repay your debt through hard work & cutting your budget, sorry!!

tyllwyd

james23_uk wrote:

4) What is the difference between an IVA and a CCJ?

I'm guessing this is a typo, and you meant to ask what is the difference between an IVA (individual voluntary arrangement) and a DMP (debt management plan)? Because a CCJ (county court judgment) is completely different.

Having said that, I am not entirely confident of what the difference so hopefully someone who knows will be able to answer!

james32_uk

tyllwyd wrote:

I'm guessing this is a typo, and you meant to ask what is the difference between an IVA (individual voluntary arrangement) and a DMP (debt management plan)? Because a CCJ (county court judgment) is completely different.

Having said that, I am not entirely confident of what the difference so hopefully someone who knows will be able to answer!

Yeah sorry, my bad. Please ignore Q.4. Actually, I think I'll go back and edit it Thanks

Cantdance_2

I guess it's up to you - an IVA will see you clear of your debts within 6 years, with the possibility of a large chunk of them being written off without you paying. The only obstacle is whether your creditors will accept your application for IVA- PayPlan or CCCS will be able to advise on what the likelihood of this is in your case. You may have to attend a court hearing, you will almost certainly get threatening letters, phonecalls and possibly even visists from your creditors.

A Debt Management Plan will take longer to pay off but you will end up paying off the whole lot (plus potentially any extra interest incurred as a result of making reduced payments...) The same applies about the letters and phonecalls but you won't have to go to court unless one of your creditors decides to go for a charge on your house (PayPlan told us that one of ours would definitely do this which is why we decided against it.)

It might sound silly but it *is* actually possible to avoid doing either of these simply by cutting back your monthly outgoings. I did it - I managed to go from a £500 a month overspend to having £20 a month spare after paying all debts and bills... This means that we'll pay all the debts off within 6 years (as the maximum term on any of them was 7 years I think), without incurring extra interest or ruining our credit rating. Like you, we don't want any more loans or credit cards but if you have an IVA on your credit record it will make it hard for you to get a car hire agreement or mortgage at a decent rate.

So think carefully before you jump into anything. You'd be amazed how much money you can save by cutting back on your shopping, getting a cheaper car, switching providers, cancelling mobile phones etc...

James

james32_uk

Cantdance wrote:

The only obstacle is whether your creditors will accept your application for IVA- PayPlan or CCCS will be able to advise on what the likelihood of this is in your case. You may have to attend a court hearing, you will almost certainly get threatening letters, phonecalls and possibly even visists from your creditors.

Is this correct? I thought an IVA was an agreed settlement?

Cantdance wrote:

It might sound silly but it *is* actually possible to avoid doing either of these simply by cutting back your monthly outgoings. I did it - I managed to go from a £500 a month overspend to having £20 a month spare after paying all debts and bills...

Unfortunately I'm in a position where income is less than rent + minimum payments. There's nothing much left to cut down on.

ms_london

james23_uk wrote:

Unfortunately I'm in a position where income is less than rent + minimum payments. There's nothing much left to cut down on.

As are a lot of people, but you can negotiate your payments & perhaps ask them to freeze/interest charges if you are having problems paying them. Alternatively, could you move to somewhere with cheaper rent?

Addicted2Chocolate

i believe that a IVA will have a similar effetc as bankruptcy on your credit file, but not sure so check with experian/equifax. at any point your credit file will contain the information from the last six years.
Cantdance is correct, with an IVA you put together a proposal, which sets out your assets, debts history and what you wil pay/sell in the IVA. The creditors vote on the propsal and the IVA is only agreed if 75% of creditors by value vote for it. If it is agreed it is legally binding on all your creditors.

james32_uk

ms_london wrote:

As are a lot of people, but you can negotiate your payments & perhaps ask them to freeze/interest charges if you are having problems paying them. Alternatively, could you move to somewhere with cheaper rent?

Thanks for the help, "honey", but I'm all too very much aware of how to cut spending. What I'm trying to find out is info on IVAs, and people's experiences especially of trying to rent property during the period of the IVA. I'm also confused by Cantdance's statement about being hounded by creditors as I've read on a number of sites that that shouldn't happen.