Contemplating an IVA

riddler?

I'll give some background first:

I finished my postgraduate study in July 2010, having trained to become a solicitor. Having done a none law degree, I was required to do the GDL and LPC in order to complete the final training stage within a firm.

These courses cost £7,000 and £12,000 respectively and were funded by Professional Study Loans. In addition to the basic course costs, I also took £5,000 per year of study for living expenses. Towards the end of my final year, I took and additional £4,000 to cover the first few repayments of these loans as well as to try and clear credit card debt accrued throughout my education when times were tight financially.

I've never been too hot with money, it burns a hole in my pocket at the best of times. I also love to see the world, and so have had a great number of holidays using credit cards or my living expenses within my Study loans.

So I know find myself in a flat job market, where I am earning about £1,200 after tax each month and facing a myriad of outgoings. Despite living at home I can barely save due to the financial burden I have put myself in.

I lose £640pm on my loans, £60pm on car insurance, £18pm mobile, £60pm credit card, £180pm on petrol and other random bits and bobs per month and therein you can see the reason I'm stuck living at home!

I regret the day I ever decided to try and become a lawyer. I should have just got a job on graduating my first degree and wouldn't have this debt looming over me. It's the only thing in my life which truly makes me sad. I sit and worry at night, how am I going to afford to move out of my parents house before the loans are paid off in 5/6 years time...

But as with most people who have money problems, I worried about it but tended to stick my head in the sand and deal with it when it comes around.

I would love to be able to get a flat with my girlfriend, focus on my career and maybe even meet old friends for a drink in London.

Instead I can't afford the trip into London, I make do with seeing my girlfriend on the weekends and I am in a stop gap job whilst looking for the perfect job as I can't afford to be out of work for fear of missing a payment which I have not done to date.

I had, before really looking into things decided I might just go bankrupt and be done with the debt. But I want nothing more than to become a lawyer and to become bankrupt would end that dream.

So I began looking at IVA's and can honestly see no reason why I shouldn't do it.

I have no assets other than my watch, laptop, car and tv. I am still fairly young and the idea of being able to finish my debt before I'm 30 and think about a family and a house is very appealing.

So my question is, what information do I need to know before committing to an IVA.

For example, I owe Natwest circa £18k, HSBC circa £18k, plus other bits here and there. If I go for the IVA, will they close my current accounts? I presume I would need to open an account with Barclays for example?

I also intend to move out of the family home. Would I be able to commence the IVA whilst living at home but factor in the cost of rental into my payment plan for when I move out, Or would I need to move out and then start the IVA? This bit worries me as I cannot afford rent and loan repayments and feed myself all in the same month.

My debts as mentioned are about £34k of study loans. Half with Natwest and half with HSBC. I also have £2.5k on credit card with HSBC and about £1k with each on an overdraft. so about £38.5k overall give or take.

What would I at best guess be looking to pay back per month in the typical IVA? I have no doubt it will be considerably less than I pay now and might give me the chance to sort my life out and help me see the light at the end of this grim tunnel I find myself in currently.

Basically, as a young 20 something, is this a good route to go down or would you suggest sticking it out for a few years and seeing how I get in repaying the debts in full?

Sorry for the ramble, my head is just fried by the constant fear of potentially ruining my career aspirations by not being able to pay back my debts. It's also been fried by the realisation that I slog my guts out at work and all the money is swallowed by debts and the expense of getting to work...:(