thinking of a IVA, first time poster...help!

mullen1981

hi, im thinking about getting a IVA, im really struggling with money and i feel a IVA is the only option i want to take (in oppose to BR)

Ive managed to get myself into a pickle with money through years of being stupid with my money and racking up a lot of debt.

Now im currently owing about 40k, this is to a credit card company (15k) and few loan companies (10k).

Im wanting to take control of the situation and try and get ontop of things. A few years ago my parents took out two loans to help me out and clear some of the debt i had, they got them in their names and i pay a standing order to them each month to the tune of £550 each month, i have about 5 years left on these loans as they were both over 7 years. They got these loans to help me as there was no way my credit was good enough to get this amounts to help me out.

I owe 15k to my credit card company and about 10k in total to a few other loan companies and a overdraft on a old student account.

So all in all about 40k i owe (including my parents loans)

Ive never defaulted on any of my payments or been put in the hands of a debt collection agency,but now i wanna just put all these debts ive built up on a plan and start afreash.

Its took me a long time to build up the courage to post on here or take the first step.

Ive got a few questions in anyone wouldnt mind helping me.

1. ive just phoned up payplan and they said they will call me next week to arrange a telephone meeting, are they any good?

2.Will having a IVA stop me from getting jobs as in would they see me as a risk and turn me away like if i had declared myself bankrupt?

3.The loans my parents took out for me, how can i include them in the IVA if they are in their names but im paying by standing order for them?

4.On a 40k iva what kind of amount would i be looking at monthly? at the moment my bills are coming to just short of £900 per month? i earn £1000 so im really struggling.

5.Im currently on a payment plan for one or two loans where im paying back £10 pm would this affect me getting a iva?

6.Can you actually work on building your credit back up when your in a IVA? or will it be at the rock bottom for the 5 years?

7.Can anyone tell me what day to day life is like on a IVA, do you have to change bank accounts, and advertise it when you apply for jobs?

I know there are a lot of questions but ive been reading on this site for a while now and I feel a IVA is what i want, i dont want to go down the BR as ive just started my job and have been told the company wont keep you on when your in your probation if you are declaired BR. Also im wanting to join the forces/the police and I hear that if you go BR then it stops you automatically getting in.

If im being totally honest Im worried of the stigma behind getting a iva, if i knew it was just a way to get back on track i wouldnt mind but its the whole worrying it will effect you when looking for a job in the future. Granted im not trying to get a job in a bank or anything but i would be gutted if i seen a job i wanted in say a years time and i was stopped from getting it cos i took out a IVA. Right now my debts are crippling to a extent where im ill from money worries, my parents are helping me out as much as they can but im so embarassed about asking for money.

Any help would be great please because at the moment im stuggling.

adfax

Hi

I've just started an IVA with CCCSVA, having gone through many of the questions and concerns that you have expressed.

The key thing to understand is that an IVA is an INDIVIDUAL arrrangement, so different people will have different experiences, and what worked for me may not necessarily work for you. However, based on my experience to date:

1. I can't speak for Payplan, but I understand that they are one of the companies who don't charge up front, which is the way to go. I think that having read many previous posts, Payplan is well recommended.

2. When you have an IVA you do get entered on to the insolvency register, so if someone did want to check you out they could find out about your IVA - but they would have to go looking for it! From what I understand, few employers worry about you being BR (unless you work in the financial sector, or the armed forces / police) - even less bothered about an IVA.

3. You can include loans from family and friends in an IVA as long as there is documentation as to you having had the money as a loan from them. As far as an IP is concerned, the loan was from your parents to you - where they got the money from is neither here nor there. The point to note is that they will be treated as any other creditor - ie - they will only get back a percentage of what you owe. It is highly unlikely you would be allowed to keep up the full payment to them as this would be seen as given one creditor preferential treatment which is a big no with an IVA.

4. The amount you pay will be determined on the basis of what you can afford to pay, after taking into account reasonable living expenses, rent etc. You have to be able to pay at least £200 per month, and they will be looking for as much as possible over and above, subject to leaving you with enough to live on.

5. The fact you are on a payment plan won't make any difference - in many ways I expect this may help you as it will show that you are committed to paying off your debts.

6. Unfortuantely your credit rating will be shot for 6 years. Only then can you really start to do anything about it. Once you enter into an IVA your credit accounts will all be defaulted, and this stays on the file for 6 years.

7. As for day to day life - I have only been in mine for a week! However, the relief of having my creditors off my back is immense. You don't necessarily have to change bank accounts, but if your current account (where your salary is paid) is with a financial institution who you owe money to then you would be very strongly advised to change to a different account with someone you don't owe money to. Co-op, Natwest and several others offer basic accounts with no overdraft or cheque book. You need to try and get one with a debit card though - not all do.

As for the stigma of having an IVA - I wouldn't worry too much. Obviously none of us wanted to be in this position, and we want to do our best to pay back what we can afford. However, at the end of the day, a lot of people aren't very good with money and / or have fallen on hard times through no fault of their own.

Good luck.

raceylacey1972

Hi,

I just wanted to offer my support. I won't answer your questions, as adfax had pretty much covered that for you.

Would just like to say a few things, as has been said an IVA will rarely stop you from getting a job anywhere really. Obviously, if it's giving financial advise etc etc then yes. I worked for a major high street bank throughout my IVA and I kept my job (though I will say I didn't work in banking).
I went through Debt Free Direct, now after I took my IVA I did hear a lot of bad things about them, I found them very good. They kept me well informed and put me on to an Insolvency Practitioner, who were fair and treated me with respect.

I would say the worse part is the period when the IVA is being agreed, as I was advised to stop paying the creditors, as I would gain nothing by paying them and the money you save on what you would have been paying can be put towards your proposal for your IVA. When I did this, the creditors came a callin!!. If this is what you have to go through, don't worry, but be strong and firm with those creditors and don't give an inch or a penny. As if the IVA is agreed, these calls will stop.

As for what life is like in an IVA, well it's hard, as you have to stick to a tight budget and if your circumstances change or you earn overtime or bonuses etc, you have to be prepared to hand some (in some cases all) of it into the IVA. For example. I had bank shares, which I had to sell before my IVA concluded (which was no great loss really, as they were practically worthless)!!

My IVA finished 3 days ago, so all in all from my experience I would say that it was absolutely the right thing to do for me. As the level of debt I was in there was no way out only BR.

Don't beat yourself up about it, you've done the hardest things and faced up to the situation and now want to do something about it. That in my book is nothing to be ashamed of.

I would just like to wish you all the luck in the world and this forum will keep you going throughout.

xx

skintflint103

If you're going for police you must go for the IVA option, if you cannot do a deal with your creditors(best option) The thing with your parents is a 'debt of honour' if you put it in the iva they will be creditors and won't receive another penny until the ivas company fees are fully paid and you will disapoint them again I'm afraid. As to the other points all covered well above