Do I Do an IVA

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my question is do i do an IVA.

we are currently on a DMP paying back GBP200 per month to our creditors, our overall debt is 38,000.00 which is excluding a secured loan of GPB 785.00 per month and 194 on a mortgage.

our basc income is 1100.00 + 1200.00, however i sometime get more if any overtime is available, but this is not guaranteed.

on the DMP it will take us over 19 years to pay off, but the IVA will be over in 5 years.

my concerns are regarding what happens when you are on a IVA.
how long after coming off an IVA you are able to get credit?
i know that we will probably need a new car within the next 3 years?

just thoughts going through my head.

also heared that you go on a register and that anyone even joe public can see this.

help, not sure that to do, stay on DMP or IVA.
No. 83 in £365.00 in 365 days 17/365
Jan lunch to work days 10/20

Comments

  • Ivoryfalcon
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    Good morning MUM40,

    Have you prepared an Income and Expenditure breakdown ? If yes then post it here and there are some really great posters on here that can help you.

    19 years on a DMP is just not realistic, you really need to speak with a few IP's to get some free professional advice, please don't consider any that want to charge you before they will do anything, most reputable firms will advise you at this stage for free.

    I wouldn't worry too much about getting credit in five or six years time, you can rebuild your credit score when the IVA is over. An IVA will be on your credit report for 6 years from the date of acceptance or until completion if it's longer than that.

    A change of car whilst in an IVA is difficult but not impossible, I did it with assistance from family but without that help I would not have managed it. Some people start a lease before IVA, this can be acceptable if you need transport in order to earn an income but looking at your basic figures this would prove difficult as it would probably cost more than your current disposable income.

    All IVA's are recorded on a public register maintained by the Insolvency Service on their website, yes anyone can see it but they would have to be actively searching for you to see the entry. I have nearly finished my IVA and none of my family know.

    Hope you get sorted quickly

    Regards
  • FoggyBrain_2
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    Hi. I echo Ivoryfalcon's words, but would add, regarding credit ratings: As you are in a DMP, I imagine there will be defaults on your credit file anyway. These will remain there until the DMP is finished and the debts settled, plus the s years required for them to "fall off" your file. I could be wrong but I am sure some of the experts will be along shortly. In any event you can start to clean up your file from around 6 years after your IVA is accepted --- much better than 19!

    Also ..... under a DMP your creditors are not bound in any way
    they don't have to freeze interest and could sell on the loan to another company at any time who might require settlement in full right away. With an IVA the debt is "frozen"; no interest or default charges can be added, and, provided everythig runs smoothly on your part, it will be over in 5 or 6 years.

    But .. the best advice I can give is for you to speak to a couple (at least) of IPs / companies, like National Debtline, cccs, Payplan and get as much info as possible.
  • debtinfo
    debtinfo Posts: 7,012 Forumite
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    What is your housing situation, possitive or negative equity, What is a rent compared to your Secured loan/mortgage payments as these seem quite high, may be a way to free up money to pay your debts
    Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
    Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.
  • mel12
    mel12 Posts: 298 Forumite
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    Who is your DMP with? A commercial company will be taking a cut for themselves meaning you have to pay back for much longer.

    Speak to some of the debt charities for impartial advice
    Only after the last tree has been cut down,
    Only after the last river has been poisoned,
    Only after the last fish has been caught,
    Only then will you find that money cannot be eaten
  • Tixy
    Tixy Posts: 31,455 Forumite
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    FoggyBrain wrote: »
    Hi. I echo Ivoryfalcon's words, but would add, regarding credit ratings: As you are in a DMP, I imagine there will be defaults on your credit file anyway. These will remain there until the DMP is finished and the debts settled, plus the s years required for them to "fall off" your file. I could be wrong but I am sure some of the experts will be along shortly. In any event you can start to clean up your file from around 6 years after your IVA is accepted --- much better than 19!

    Also ..... under a DMP your creditors are not bound in any way
    they don't have to freeze interest and could sell on the loan to another company at any time who might require settlement in full right away. With an IVA the debt is "frozen"; no interest or default charges can be added, and, provided everythig runs smoothly on your part, it will be over in 5 or 6 years.

    But .. the best advice I can give is for you to speak to a couple (at least) of IPs / companies, like National Debtline, cccs, Payplan and get as much info as possible.

    Just to clarify - the defaults only stay on 6years from the date of the original default notice, after that the debts no longer show on your credit file at all. Not that you could get credit after that time of course, as it would be against the terms of your DMP to get any new credit until your debts are repaid.:)

    I think with a DMP of that length of time (and assuming you are not expecting a big positive change in circumstances that will significantly reduce this -eg the secured loan soon being paid off freeing up a lot of extra money each month) then it is worth considering other options.
    I'd recommend you talk to one or 2 of the debt charities first and then if you think an IVA might be the right way to go then also speak to other IPs before choosing who to use.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • whichwhydoIturn
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    i am in the a similar postion place as the OP. i have really thought about BR, I am single, 49, bring home £1100 a month, rent privately.I am with a DM company, GP, and i pay them as I have for the last 4.50 years to apy my creditors.i will be in my late 70'S.i cant afford to get the BR together,I also have thought I should stop the DM and wait to see what happens with my creditors or wheter I ought to go to the route of IVA, simpy for the fact, i believe it is less harsh than BR.Would love some guidance please.I feel like this every few months.debt sits with me all the time.thank you in advance for any help / suggestions thank you x
    mum "e" to the most perfect girl :Awho stood by me through it all nana to my beautiful grandson WLM 27.09.13:j
    mother of the bride September 2014 :love:
    Turning a house into a home :o
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  • MUM40
    MUM40 Posts: 304 Forumite
    First Post First Anniversary
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    thanks everyone, we are now going to do an IVA, and will be starting this over the next month.
    we are also going on a economy drive for the New Year, and will be doing a budget for our weekly outgoings and our monthly payments. OH gets paid weekly, and me monthly.
    what we dont need, we will not get.

    Happy New Year everyone
    No. 83 in £365.00 in 365 days 17/365
    Jan lunch to work days 10/20
  • Nargleblast
    Nargleblast Posts: 10,762 Forumite
    Name Dropper First Post First Anniversary Debt-free and Proud!
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    Happy New Year Mum40 and hope the IVA works out for you. Have a look at some of the other forums for ideas on living within a budget, eg the Old style moneysaving forum. Also on the Debtfree Wannabe forum there is a thread "Out with the old..." where you can join the No Spend Day challenge...take a look, every little helps!
    One life - your life - live it!
  • trudij
    trudij Posts: 1,905 Forumite
    First Anniversary Combo Breaker
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    Happy new year Mum40 - agree with Nargeblast - very best of luck, have a good root around here for ideas on saving - its amazing what there is out there that you can do, and how much difference it makes !!! (and it becomes quite fun - promise!!)

    good luck x
    Do not meddle in the affairs of dragons, for you are crunchy and taste good with ketchup
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