Considering an IVA

niclj

I'm seriously considering an IVA but the thought completely scares me.

A DMP would be the ideal option but I think realistically with my level of debt and money available to pay it off I will be paying forever!

I have spoken to a couple of companies and found them to be very pushy. They wouldn't enter into conversations about a DMP.

Talking to Pay Plan on Friday about the best options.

Have had really supportive messages from people on the DFW board.

Should I be scared of an IVA?

Charco_2

All the solutions are going to be a bit scary and until you find yourself out of debt you're always going to wonder if you've done the right thing. I suppose a DMP would seem less scary because it's informal, not formal, so there's nothing binding in it (but it also offers less protection from the creditors).

For the vast majority of people who enter IVAs, although it's probably scary, there is a huge sense of relief. It really does depend on your own situation though and your best option is to find out as many opinions and as much information as you can - at the end of the day it's YOU who'll have to make the decision.

Good luck speaking to Payplan and you can let us know how it goes.

sallylouise12

Hi niclj

This is the first time I have posted on the forum, and I certainly don't profess to be a financial expert, but having had an IVA myself I hope this helps.

I entered into an IVA in 2006 with debts totalling approx £30k. I used a local independant practitioner. At the first meeting I found them sensitive and professional. The IVA was agreed approximately 1-2 months later. I didn't attend the creditors meeting. I was very apprehensive about entering into the arrangement however at the time I had little choice with my monthly repayments totalling more than my income.

In 2007 I was very fortunate to be offered a generous early leaver option by my then employer. My practitioner proposed a final settlement and this was agreed at a creditors meeting in August 2007.

It was only in 2008 when I received a stray letter from a debt collection agency that I found the final settlement was still been held by the practitioner and I had to chase them to pay it out. They told me it had been held because a creditor had now come back to them and declined the settlement payment. Fortunately I still had the letter of confirmation that the amount I had offered had been agreed in full and final settlement of the IVA.

It has only been since reading this forum today and following advice on a thread I have checked my credit files to find that there are 5 creditors who have not updated my files.

Overall though I have to say I do not regret the IVA at all, it offered a solution which I felt was better than bankruptcy and the relief at the collections calls and letters stopping was huge.

If you do decide to go ahead the main advice I wish I had been given at the time would be:

• Check ALL your options before entering into an IVA and use reliable sources such as this forum
• Keep copies of all correspondence from your practitioner and if they don't send it, ask for it
• Call them at regular intervals to get "status" updates
• Make sure they send you the completion certificate when it has ended
• Check your credit files when it has ended

I hope this helps.

sallylouise12

niclj

Thank you sallylouise12.

It seems like such a huge step but since finding these forums I have taken great comfort from knowing I am not alone.

I will know more on Friday about my options but I'm getting more comfortable with the idea.

Nic

Dodo_Donna

Hi,
I have just posted a new thread today regarding this as I am in a similar situation. A financial advice company said that they went through all pathways to clearing my debts and told me an IVA was the best solution. I felt quite pressured by them into agreeing to propose an IVA. I was really scared and didn't really understand what an IVA really meant. As it turns out I didnt have to go for an IVA at all and yet they assured me it was the only way out for me!!! IVA providers make a lot of money from IVA's and therefore it is their interest to push for that.

My advice would be is not to rush any decision and to investiage ALL your options (there are always 'options' ,though at times it may not feel that way!)

Why don't you go and see the CAB. Or the other really good forum apart from this one that has really helped me investigate things is IVA.co.uk. There are IVA experts there that offer free and impartial advice and will not be biased.

Dont be scared you are already taking an amazing and positive step forward by investigating how to solve your debt problems like you have.

Good luck with everything!
X

niclj

Thank you.

I felt slightly bullied by one guy from Harrington Brooks. By the end of the conversation he was booking a courier to come pick up my documents! He wasn't pleased when I said I needed time to think about it.

Just trying to stay calm!

Nargleblast

Make sure you don't rush in to agreeing to the first solution that is offered to you - it is a good idea to ask around, speak to different companies and see what they say before deciding what to do. Let us know how you get on with Payplan.

sharalee99

I thought long and hard and considered all my options carefully before deciding on a Scottish trust Deed (Equivalent of IVA). It took all the stress and worry off of my shoulders. Initially, I still kept getting letters from the odd creditor, but replied with copies of the paperwork from the Trust Deed. They soon stopped. I have 8 months left of my 3 years, and I really don't know what I would have done otherwise. I would go to your local CAB and go over your options. They can recommend a good IP to advise you if that is the route you decide to take. Best of luck with whatever you decide, and try not to worry too much.