Starting An IVA

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Hi everyone,

been reading all of the posts on this board for months now, and after a year of everything going belly up (and sticking our heads in the sand) We have started the process to begin our IVA.

We nearly lost our home (due to my husband being on the sick and me being on maternity leave, then both of our cars dying on us) and were told to stop paying all non-essential bills to make sure we could keep up with our mortgage payments. We did this, as well as changing our bank accounts (as the majority of our debts were with our current bank) but the interest and the threatening letters began piling in and I got to the point where I couldnt answer the phone and used to bin the letters without them being opened. Stupid I know and I realise that this could all have been easily sorted out back then, but the few attempts I made at the beginning were met with unhelpful and threatening people on the other end of the phone. This put me off calling any more. They would say things like 'we can see you have x amount of money in this account we demand you pay us more!' etc and wouldnt accept we have 2 young children to feed and couldnt give them all of our money to last the rest of the month.

I tried to enter a DMP some months ago, but didnt realise that I was getting dragged into a scamming company, I was stupid enough to hand over £270 to them to start a DMP, before they had even spoken to my creditors or sent me any paperwork. Again I just sat on the debts worrying about opening my curtains incase bailiffs came round, I dont open windows and my son cant play outside for fear of getting any more visits.

Now it has all got to much for me...and my husband and I are starting the process to begin an IVA. Im still scared, and think I will be until everything hopefully gets accepted and we are making payments, but I feel better for doing something about it.

It was my sons birthday this month, so my husband and I went out and spent more than we should really getting him some things that we knew we wouldnt be able to afford later on when we are tied to a strict buget. All the rest of the pennies left over will be withdrawn and hidden away for a rainy day under my mothers name.

I just wanted to post on here, so that I am finally admitting that we have a serious financial issue, and we are trying to deal with it now. Ive seen the support that is given on this board and I know that this will help me through it all. Just fingers crossed and the proposal is accepted, the nasty solicitors letters stop and we can open our curtains again...Ive forgotten what its like to live like that!

Thanks for listening

Comments

  • Foxy-Stoat_3
    Foxy-Stoat_3 Posts: 2,980 Forumite
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    Well done for taking the first step. Hopefully you went with an IP that doesnt charge you anything for setting up the IVA.

    As long as everyone, including kiddies, are on board with it, ie you cant buy anything thats on budgeted for, you should be fine with it.

    It helps to set up a simples excel spreadsheet with the monthly outgoings so that you only spend whats in the budget, your IVA wont fail. You dont want to miss any payments or overspend on stuff if you havent got the money.

    5 years is a long time to go without credit if you have been used to it for so long, but I am sure you will get there !!!!!

    :T:T
    "Dream World" by The B Sharps....describes a lot of the posts in the Loans and Mortgage sections !!!
  • FoggyBrain_2
    FoggyBrain_2 Posts: 1,121 Forumite
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    Hello and welcome. Life under an IVA isn't easy, but it IS easier than life under financial stress !! I actually have more now, than I did before, as long as I stick to my budget.

    Best of luck with your journey
  • Nargleblast
    Nargleblast Posts: 10,762 Forumite
    Name Dropper First Post First Anniversary Debt-free and Proud!
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    Well done for taking the plunge! IVAs are not suitable for everyone, but if you are going into this with a reputable company then things will work out fine. Remember that the company is not going to take on all the work of drawing up and submitting an IVA proposal if they think it might not be accepted. Some creditors will say yes, others will say no but will agree after further negotiations. It's just the waiting around that's difficult, but once it's all agreed and up and running it's like the start of a whole new life. Yes, a fair bit of belt tightening will be required, but the IVA company should make sure that your budget allows you enough to live on including a small amount each month for emergencies. If anything unexpected crops up during your IVA (major car repairs costing over the budgeted amount, central heating system packs in, washing machine dies, child changes schools and needs full set of new uniform etc) then contact the company immediately. They have some flexibility to adjust your payments for a short period in situations like these.

    One advantage I found was not having to pay for Christmas spending for months and months afterwards! As well as not dreading the post arriving, or opening my bank statement.

    And of course it will be all done and dusted in 5 years (6 in some cases) - the time will fly by. I am already 2 years in, so heading towards the halfway mark.
    Good luck with the proposal.
    One life - your life - live it!
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