iva help!

moondance_2

my parents have debts of close to 40k, they're seriously struggling money wise (can't pay bills, missing credit card payments etc). my mother has been in contact with bestdebtsolutions.co.uk who are coming to the house to speak to her but in the meantime i figured i'd ask here.

i read up on dmp's and iva's and figure the iva's seem most appropriate for them however my dad works full time but he works for an agency therefore has never had 'permanent' work as he can be laid off at anytime. (my mother can't work) will an iva still work for them if he is on the dole? its just he's 59 so a dmp wouldn't really work them as he'd have to work till he's 80!

basically if anyone can give any advice that would be great. i hate seeing my mother crying and getting herself upset.

thanks

Deep_In_Debt

Hi
From what I know about IVA's it may not be suitable for your parents. Can they afford £250 min for the next 5 years bearing in mind your dad's work is not permanent? If the IVA fails due to non payment, it could result in bankruptcy and your parents may have paid thousands in fees before their creditors see any money.

If a dmp is not suitable, have they thought about bankruptcy?

Can you give some more info - do they own a property?

Try calling CCCS, Payplan, National Debtline or CAB, who will advise in your parents interests and not like best debsolutions who will only be interested in making money, so they will advise an IVA.

Why not post on the Debt free wannabe board or BR board for some different advice.

moondance_2

hi, thanks for replying.

no, they don't own property. they live in a council house.

Deep_In_Debt

Usually IVA's are only suitable for people who have property to protect especially if they have equity as they would normally be expected to release equity in year 5 to pay the rest - it's an alternative to BR.

Why do you believe that an IVA would be more suitable than anything else?

doelani

moondance wrote: »

hi, thanks for replying.

no, they don't own property. they live in a council house.

IVA are usually for people who have a home or job to protect and from what you say this would not apply to your parents. An IVA does not allow for things like unemployment and is a legally binding agreement so if agreed at £xx for 5 yeras and anything happens and you cannot pay this it will fail.

As already suggested they need to talk to one of the free debt charities and really should cancelt eh appointment with the company coming to visit them.

Deep_In_Debt

Also, in and IVA you are stripped back to the minimum living, if your dad gets overtime etc, that would be taken. A lot can happen in 5 years and if your dad is not working permanently then I would think an IVA is not suitable.

DMPs seem scary as they seem to take longer to pay off but you have a much more generous living budget and flexibility and it's easy enough to reduce the repayment length. I started a dmp in Jan last year and was told 9 years to clear it but have now reduced it to 5 years.

Please speak to one of the charities I mentioned. CCCS do a debt remedy on line - you can do this now and it will recommend your options immediately.

churchrat

hi
don't forget, that bestdebtsolutions will be wanting your parents to take out an IVA--its how they make thier money (they are a business and not a charity) they will NOT give the best advice for your parents, they will give the best advice for themselves. The problem is that they will package it up to be a "painfree" solution, when in reality one does not exsist.

Have you asked over on the debt free board?? in my limited opinion an IVA does not sound right for your family.
goodluck
churchrat

motivate11

just to let you no my experiance i was in a joint iva which failed a few months ago my creditors received nothing but i paid about 1500 to the solicitors dealing with the case
i could have gone bankrupt at the time i took ithe iva out my wife wouldnt have had to be involved but i done it because i thought it was right to pay something back personnal pride any way my work changed for the worse being self employed and am now bankrupt after paying a solicitor for what
i am now bankrupt and nothing for me has changed still cant get credit (dont want it anyway)
but the worry has gone no more calls a fresh start
so if your parents dont have any assests tell them to think about going bankrupt
tryu debtline as well or cab for advice

motivate11

sorry about grammer etc not my best skill but im sure you get the point eventually

thecableguy12

bankruptcy is the best option, when i worked in ivas we were not allowed to say that because of all the fees the company would get, but br is the best option just make sure any cars are not worth over 5k or this may cause an issue(ie being an asset):money: