IVA-Is it the right choice?

SJHG2009

Hello.

Im new to the board and a bit worried with things.

I have 4 debts with various places, and it adds up to about 10k.

I have been missing payments with some, to get others back up to date, and its just getting out of control now.

To make things worse, i lost my job last week.

Im in such a quandary, and don't know what to do, im so worried.

I have been looking at IVA's anyway, and i want to know what others think will be a good thing to do.

I am activly job hunting and my partner is trying to help me..bless her.

Thanks

Steve

Charco_2

It's highly unlikely that an IVA is currently your best option.

You have No income and Only £10k debt.

The first thing you need to do try to find gainful employment (which obviously you are trying to do) and then from there you would have to look at your situation. It's hard to see that you could do ANYTHING in your current situation.

Try not to fall into a habit of "robbing Peter to pay Paul" even though it may keep your creditors off your back - it would become a false safety net or comfort blanket.

Possibly your best option would be to go direct to your creditors and explain you've lost your job and cannot currently afford to make ANY repayments. Ask if they'll freeze interest and charges and you'll make token £1 payments (or £5 if you can afford it) to let them know you're still there until such time as you're able to re-evaluate your situation.

They may suggest/insist that you speak to their company, the CCCS - it can't hurt but NOBODY is going to be able to help you until you get a job. If you have no assets ad no income you may be best having a look at bankruptcy - but do try to avoid it if you can... get the Job sorted and a few options will open up to you

Good luck!

Nargleblast

When you contact creditors or organisations such as CCCS/Payplan etc they will ask you for a full breakdown of your household income and expenditure plus details of all loans/credit card debts etc. On the Debt Free Wannabee board there is a "sticky" at the top which you can use for a SOA (statement of Affairs)calculator. This will help put your situation down in black and white, and people on that board will also be able to advise you. Have you checked whether you can get Job Seekers Allowance or other benefits to tide you over? Do you qualify for a redundancy payment? Any credit cards you own should be immediately cut up so you are not tempted to use them and make the situation worse.

SJHG2009

Thanks for the info.

I was only there for 11 months so very little if no redundacy pay.

I have the months wages coming etc so that will give me about 1k to play with if i can.

I dont have any credit cards etc so thats not a problem.

My main priority is finding a job.

I have spoken to someone regarding an IVA and they said they could help, and i need to see if i can get JSA so at least i have some form of income.

My partner is helping me so i could do it, its just the inbetween time that worrys me.

What is these DRO all about, is that something i would qualify for?

tigerfeet2006

The only people to talk to regarding your finances are one of the debt charities CCCS/National Debtline/CAB or Payplan. Do not under any circumstances talk to one of the IVA/DMP factories. In your circumstances an IVA is definatly NOT suitable.

A DRO is a Debt Relief Order for those who have less than £15k debt and no assets. You need to talk to one of the debt charities and they will be able to tell you if it is an option. There is a sticky at the top of the Bankruptcy board about them if you want to read about them.