just starting to look at IVA

fazer73

Hi

Just had a chat with Baines and Ernst about an IVA, looks like its the best plan for me (mortgage and just under 50k of debt on loans and credit cards)

They think I can keep both my car and motorbike due to needing a car a for work (when I have to move servers and pcs etc) but allowed to keep the bike as using the bike my petrol spend is about £10 per week but in the car its closer to £30 per week (its an old car nothing special and worth about £200)

Does this sound correct ? I would have thought I'd have to sell either the car or the bike or both.

They also think that I would be accepted paying 16440 over the term of 60 months, just sounds too good to be true ?

cheers

Charco_2

It's not too good to be true, it just requires the agreement of your creditors.

Have you paid B&E anything yet?

It's perfectly normal that you would keep a car, especially one of such limited value and also because you need it for work purposes... however, there would be no guarantees over the bike - if it is of value, your creditors may decide that they want you to sell it and bring the money into the arrangement. (the bike saves you £20 petrol a week which is £86 a month... 60 x £86 = £5160 is this worth more or less than your bike?)

Not trying to put you on a downer or anything, just bringing some reality in, B&E cant guarantee you'll keep your bike but they may try!

(The reason i asked if you've paid them anything is because they charge an upfront fee whereas there are IP companies out there who wont charge. The idea is not to cause you more debt, the IPs fees are earned and agreed within the IVA so effectively your creditors are paying the fees you shouldn't have to pay for the advice! (There's another thread on here about this, think i'll go find it - it's called "A big lesson learned...")

fazer73

Hi,

bought the bike for £2200 about 9 months ago, put a load of miles on it so far (and dropped it so the faring is cracked) so it is probably worth about 1500 to 1900 now.

I have not paid anything yet, they are sending out the paper work for me to look over on Monday to see if I agree with it all.
I know it is going to be a tough five years but just making the decision to get help rather than stick my head in the ground has made me feel better and more hopeful.

I'm reading loads of threads about IVA's which are helping loads, and will make sure I get all the info before I sign anything..

Charco_2

I'm not knocking IVAs, I think they're great in the right situations.

I just also think if you are signing up to make 60 monthly contirbutions to deal with your debts, then you shouldn't be asked to make 61 or 62 payments (it's a small issue though i suppose!)