IVA declines

james32_uk

Anyone have any experience of going for an IVA and it being declined? What happens when your creditors discover you're in money troubles? Payments up to date at the moment....

sparkle84

If you are up to date at the moment you will be declined anyway where is the upside for creditors you need to be in serious trouble before they will consider an IVA

james32_uk

My outgoings are around £400 more than my income mainly due to the large amount of debt that I have. I've been informed that this is serious enough trouble to be in. All I'm doing is prempting the inevitable.

ms_london

If you have read that link I gave you the info should all be on there. Have you contacted anyone to get this IVA in motion yet?

Squawk_2

As soon as your outgoings are more than your incomings, you are are already in serious trouble. I know, I've been there, done that, got the XXXXL T shirt. My payments were up to date at the end of last year, until I'd maxed everything out, then everything collapsed within one month.
Just speak to an expert on IVA's, I'm sure someone else here will be able to list them.
One of the first things they will get you to do is list ALL of your debts, it is absolutely critical to get everything listed, down to overdrafts etc. They should then give you impartial advice as to whether IVA is the way to go.

ms_london

Squawk wrote:

As soon as your outgoings are more than your incomings, you are are already in serious trouble. I know, I've been there, done that, got the XXXXL T shirt. My payments were up to date at the end of last year, until I'd maxed everything out, then everything collapsed within one month.
Just speak to an expert on IVA's, I'm sure someone else here will be able to list them.
One of the first things they will get you to do is list ALL of your debts, it is absolutely critical to get everything listed, down to overdrafts etc. They should then give you impartial advice as to whether IVA is the way to go.

Exactly what I have been trying to tell James all along - but he knows best!!

Tr@cker

As i understand it they wont consider an IVA for debts under 10k and non-payment for months on CC's etc. etc.
Its not meant to be an easy way out but an option for the genuinely desparate.

Squawk_2

My debt was over 10k (well over) but I'd been making payments up till the time it all became totally entenable, so the only missed payments were one or two before I went for the IVA. Of course by the time the IVA came through I'd missed a few months more!

james32_uk

ms_london, I've been speaking to various people all along. Just some things get told to me differently from different people which is why I seek assurance from here.

Squawk, your situation sounds exactly the same as mine. Could you give me some details of how your IVA went, how much is your dividend and how much did you keep keep for essentials. Have you missed any payments and did your IVA get accepted first time or were amendments necessary? Who did you go with and how much fees did they take? Any info much appreciated!

Squawk_2

My IVA went through first time with just one amendment. Intead of 75% of my share of the current house equity, I agreed to getting two offers of remortgage on my share of the house equity in last year, accepting the highest offer and paying that into the fund. This means I will not have to sell the house as they will accept whatever I can remortgage to, and due to my age/finances I don't see how that will be even near the 75% anyway. (Who's going to give me a mortgage at 60yrs old and after an IVA anway?). Bankruptcy gave them about 30p in the £ whereas an IVA will give them between 40 and 70 or so depending on the remortgage value.
I went with Baker Tilley who were excellent. Didn't cost me a penny as they take their costs as supervisors from the fund after the IVA is accepted. If the IVA is declined then they just write it off, which kind of shows you what the success rate is.
Regarding the IVA monthly payment, I had to fill in a form which listed ALL expenses, plus a given living amount (£180 per adult/£100 per child) and contingency (Single £40, Couple £60, Couple plus children £80). They do not expect you to live on rice for 5 years, but no holidays to Hawii either.

james32_uk

Thanks for the info Squawk. Could I ask how much Baker Tilley took from the IVA for fees?

I hope to be able to get a morgage in the future as my understanding is that your credit file gets wiped clean after 6 years.