kind of regretting my IVA?....

mullen1981

Hello,

Im currently 1 year into a iva with payplan, im finding myself getting more and more frustrated with it though and im looking for advise as to whether or not i should go BR.

I loved my IVA at first as i got myself into a massive mess (ill not go into how i ended up needing a iva) and the IVA was a lifeline.

At first the payments were brilliant and the thought of finally getting a break from the creditors and starting a fresh was brilliant.
Now though im getting a bit fed up with the IVA, the reason is i cant see myself getting out for the hole im in debt wise even WITH the iva, what i mean is i currently have debts of roughly 850 p/m that includes my iva payment and the majority is for rent/household bills etc, my pay is 1000 basic, im trying to move into a bigger house to maybe start a family, i do a lot of O/T at work and this bumps my wage upto 1400p/m. Each month i try to put this extra money away to move out but every 3 month i send my pay slips in and get wacked with a extra big amount to pay off with the iva due to the OT ive done. Its got to the point where ive thought about working extra to put the money away to pay off the IVA quicker but i cant because everytime i try to save it gets taken away from me.

I must point out at this stage i know the iva has helped me out a lot in terms of getting me out of the pickle i was in originally, and i know in the terms of the iva the creditors are entitled to a percentage of the OT but im just wondering how i could save up to move out and improve my life, whilst maybe also saving to pay off the IVA quicker?

Im not working the OT the go out with my mates and think 'ha the iva is sorting out that so i wanna have some fun now with the extra money'
Im merely trying to move on with my life and i cant help but think if i wasnt in a IVA and went BR i would potentially have the 250 each month i pay into the IVA but also all the OT i work i know i would actually get to keep which would really spur me on to not blow the money but work harder to make more instead of thinking its getting taken off me.

My head is in bits at the moment as im wondering if i did go BR and my partner got a mortage as long as i just lived there (and gave her money) and i was not actually registered on the mortgage would being BR not matter?

At this present moment in time i keep thinking, in my current job i could stick it out for 5 years and be better off money wise each month if i was BR than i am currently on my IVA. Since starting my IVA ive lived exactly the same was as if i was BR i.e not getting anything on finance, not even thinking about it!
but each month im getting more and more fed up of seeing all the money go and i cant claw back as its gone due to the T/C's of my IVA

Please be gentle with a response as im really cut up about this, im honestly not trying to come accross as someone who isnt taking the IVA/BR thing seriously i just want to move on with my life and i feel that the IVA is pulling back to being skint like i was before the IVA.



help?

FoggyBrain_2

If you have a disposable income to pay towards your IVA, you will also be expected to pay much the same amount in BR, as it is likely you will get a payments order. Admittedly it will be for three years maximum, but add that to the year you have already done and you will have paid for four years anyway --- another year and you'd be clear of the IVA.

What I do in my IVA is pay over the extra earnings monthly and squirrel away my 50% in a savings account, hopefully to be able to get at least enough to make a F%F offer and lose the last year. So, if you could do that, you'd be no better off in BR. I am assuming that payplan are only demanding the 50% share and not the lot!

Moving to a bigger house is going to be difficult in IVA, but near impossible in BR.

To_be_Free

I went though this stage after I had been in my IVA for the first year, but i sat down and made myself remember what it was like before my IVA constant worry and juggling my finances and still getting in deeper and deeper debt. I am now into my third year and feel a lot better about it and am looking forward to the end and being debt free.

danielanthony

You wont get a mortgage until the IVA is off your credit file, so in another 5 years in your case. I started an IVA in 2003, finished it in 2008, got a mortgage in 2009. The yearly reviews were a PITA and it was a bit like a prison sentence but now I own a house and it's all behind me. Going BR will have lots of unforseen consequences, potential jobs, insurances etc

mel12

Are you aware that if you go bankrupt you will be asked to pay any surplus towards the bankrupcy (an IPA - income payment arrangement) for 3 years? The amount can be adjusted up or down (including to zero) if your income changes. There are allowances for what expenditure you are allowed - some rough guidelines here , or if you want to post an SOA on the bankrupcy board we could tell you how the OR (official reciever who deals with bankrupcy) might look at it.

Also have you called one of the debt charities for some impartial advice about what bankruptcy involves (if you do decide to go bankrupt the judge will ask if you've taken advice so you need to do that)

balmk

An IVA is a hard slog and the term seems to stretch on forever, but it does come to an end.

I was also supposed to do yearly reviews, but instead agreed with my IP to be a little more proactive and adjust the amount of my contribution monthly, sending payslips and a cover letter each time.

This meant that there were no nasty surprises and it gave me a sense of control over my finances.

Each year I would then complete a new I&E form and make any further adjustments accordingly, subject to agreement with my IP.

I also set up a spreadsheet tracking the total debt, and monthly contributions with a "standard" column (basic contributions) and an "actual" column with the actual contributions that had been made. Again, this lets you see your progress and does take the edge off a little as it means that you are able to monitor your progress and see how much of the debt you are chipping away.

Hope that helps.

dancingfairy

Hi - perhaps you need to take a step back a bit? You signed up for an IVA for the 5 years? and you will have to make the payments for the next 5 years and then the debt will all be taken care of. Your debts are being dealt with. You now appear to be wanting to move the goalposts - ie pay off the IVA early and move house. Perhaps you are trying too hard? perhaps you were missold the IVA and didn't realise that it would tie you in for 5 years? I don't know but you need to sit down and look at it in the cold light of day.
What can you realistically achieve? Is it worth doing overtime? overtime is your choice - you know that the IVA people will get 50% of any overtime?
Perhaps go over to the bankruptcy board and find out how overtime would be treated in bankrupt cy and then you can make a clear comparison.
I get the feeling that you are working harder and harder and going around in circles right now and need to kind of sit back, appreciate what you've achieved and work out a realistic plan of action - whether it's worth it to you to work all the hours possible given the constraints you are under or whether you need to sit back and be patient for a while until the IVA is nearer completion.
Best of Luck
df