IVAs, are they good? Help needed :(

milliejon

debtdestroyer* wrote:

If you do decide to take an IVA please use either CCCS or PAYPLAN, all the others are just money grabbing companiess.

I agree that you must be careful that you're not using a commercial business - but National Debtline are a charity - I haven't paid a penny for their advice which is working for me.

I was also dissuaded from a IVA.

biglad

ok got payplan getting in touch with me tomo.

i just want things sorted, and some reason just think an IVA is for me as it will give me a time when i know ill be out of debt. Thinking about things i did ask a few times about how much id get charged and he just kept saying the creditors will pay the fees and wouldnt give me a figure.

my situation is a bit strange, as i said im self employed but just took on a part time position to try and sort myself out so ive got something regular coming in. ive been thinking bout things and these IVAs seem a lot like them stupid consiladation adverts on the TV which ive always thought dodgy.

basically i just want all the letters to stop and to get the creditors off my back cos thats stressing me out big time if im honest and im struggling to motivate myself for my business

thanks for the advice so far

biglad

been having a good think, i want to take an IVA but will go to payplan for it, dont want a DMP cos that will just keep me stressed out

sorry if im repeating myself or anything at times just stressing a little

livinginhope

I can really sympathise with the upset of the creditors letters and phone calls,a couple of weeks ago they drove me to the point of despair,but with the support of this site and others I am now more able to cope.
You said in a post that you have no way of paying these debts back,but with an IVA you are expected to pay quite a hefty ammount over an agreed period of time(usually 5 years) with a DMP you have more control,pay a smaller amount that you can realisticaly afford,but it will take longer.NOBODY can guarantee to stop calls or letters,or freeze interest,all the time you have a debt they will keep coming,though they will be less often,you will find a way a dealing with them.Be wary of anyone saying they will get the calls/letters/interest stopped.
Talk to Payplan,good luck!

In_Search_Of_Me

I know (from recent experience) that this is really hard but please dont rush anything & as advice above try someone like CCCS (were great in my case) who are a charity & not out to make money off you as some will...hope you get some good advice that is best for you....

milliejon

biglad wrote:

been having a good think, i want to take an IVA but will go to payplan for it, dont want a DMP cos that will just keep me stressed out

sorry if im repeating myself or anything at times just stressing a little

You may find, when you've spoken with PayPlan that there is another way to deal with your debts.

I wish you luck - let us know how you get on.

biglad

ok so the IVA did seem a little too good to be true, payplan rang me today and explained a few things he never told me bout the IVA such as it would rise dramitacally in the last year.

Ive got my long chat on tuesday to try sort out things which i hope i can do but u never know.

Ive been told to ring all my creditors and tell them im sorting out a DMP and that i can make token payments to them but just need a little time to sort things.

one question, what happens if id had letters threatening legal action, will they agree to the repayment plan or not. She said my other option would be bankruptcy but i got myself into this mess and wana try get out of it but who knows.

does the stress of all the letters finally ease off as its really getting too much for me

Luke1068

Biglad - sounds to me like a few of the bits of advice are not entirely accurate. 've been in a very complex and large IVA for 2.5 years and pretty much know about them inside and out.

example, if you have debts of £30k, in an IVA an Insolvenc Practionner appoints a Supervisor who controls the IVA on behalf of you and your creditors. Bwteen you and the Super, you will look a your income/assets etc and work out how much you can reasonably afford over a period of between 3-5 years. They will contact all your creditors and put a proposal to them stating how much you will pay back (could be anything from average 30% - 70% of the debt and over whatever period is practicable 3-5 years). If 75% (in monetary value) agree, then that is it. You pay the agreed monthl payments to the Supervisor, all creditos are lefall bound by the agreement and cannot take any legal action at all. All their communication needs to go through the Super. The Insolvency company may well make an initial sall charge, but all other fees are taken out of the total agreed sum you are paying back but does not afect you at all.

The only shortfall really is that is will affect your credit rating, not as much as bankruptcy, but it will and secondly, if you default on your payments more than once, the Supervisor is leally onbliged to declare the IVA void and has to ssue bankruptcy proceedings against you.

So for example you owe £30k, you can feasably afford to pay back £20k over 5 years is £333 p/m

Hope this very brief summary, of what is quite complex, helps.

Luke1068

Just a short foot note.

Once the IVA is agreed, all interest is frozen.

The whole point is that if creditors think you might file for bankruptcy and they might get anything, it is in their best interests to go fr the IVA, afterall they will usually (by the sounds of your situation) get nothing, therefore they would stupid not to go with it, even if you find yourself only paying £10-£15k back. The Supervisor will best advise you on this and will judge 'how much you can get away with'

I'm not pretending its easy, the humiliation, embarrassment etc is crippling, but once the IVA is agreed, the weight off the shoulders is amazing.

Although my IVA was massive and as a result of crooks, it doesn't change how it affects you. I nearly lost everything I had worked for in 20 years, but a superb Insolvency company saved my skin.

Tr@cker

Perhaps somebody can answer this question then: I.P. firms get a lot of stick on here because of their fees but they CAN get the debts reduced and so can be worth the cost. If they can do this how come the free services cant ?