First steps in an IVA

mark_steps

Im not ready just yet for an IVA, been back and to from the citizens advice in Edinburgh. Took all my documents, bills etc in. Done my income and expenditure. OH isnt working now so its just my petty wage
The money advisor is off this week so my app is with her/him next week.
Currently my monthly wage is £1000. my outgoings are £1100 and thats NOT including the debt we have with various places totalling a shocking £40000.....yes i have been a total idiot.....
OH is now on job seekers, trying to get council tax lowered, i have applied for working tax credit but will prolly not get it. Worth applying for what help i can get tho.
Do i suggest an iva OR let them tell me my best option?
Also my mortgage is with halifax and im already £2000 behind. Im thinking my wages go into a halifax acc so maybe i should get a new account like co-op (no co-op debt).

If i get an IVA can i save money? i mean i guess ur not allowed to but if i work overtime and get say an extra £200 can i put it in my mums account?

many thanks....

debtfree2016

Hello and welcome to the forum,

www.iva.com is a website full of IVA providers i would suggest speaking to at least 3 companies, when you speak to these companies they will offer you the options of DMP / IVA /BR. A new account is advisable and one that is not linked to any of your creditors, you will also need to decide if this is a single or joint IVA.
Your overtime will need to be taken into account and will be applie dto your IVA, you will not be able to seperate these funds. Entering an IVA is a very important decision and will last 5 to 6 years so please take on board what these companies have to say plus your local CAB office.
I'm in the early stages of applying for an IVA, others who will reply have just started and there are more who are half way through and evenmore who have now finished and rebuilding the credit files... each of us has our reason for what we have done.... but we all have the same reason for being on this site.

Take care keep posting..

mark_steps

Are you allowed to save sneeky pennies?

Say an IVA takes £350 from me each month and my mortgage is £350 thats £700. food petrol etc say im left with £30 am i allowed to save/spend or do i need to put to the iva?

Foxy-Stoat_3

You fill out an expenditure form which lists all out goings, and some you may not of thought about. Whats left after having some sort of "life" ( I dont think going out drinking/holidays to vegas will be included tho) will be used for the IVA payments, rounded down to a reasonable figure. If all the parties are happy with it then thats what you pay, if you agree, but your IP will advise you anyway.

You will have to strictly budget each month for 5 years, which isnt a bad thing, I used a simple excel spread sheet to work out how much to spend of stuff and how much to spend on bills and not how much the ATM said I had!

If your outgoings (excluding 40K debt & mortgage back payments) are more than your monthly take home then i dont think an IVA will work as you need to pay back at least 25% of the debt.

Have you got equity in your property? If you have little or negative equity then BR may be the only option unless your OH can increase your household income.

Good luck

debtfree2016

Lets just say .... you are given a guidance of what your expenditure should be plus your general bills. What you have to remeber is you won't be able to fall back on any credit cards or OD's so any sneeky pennies you save (and yes you can if your stick with cash purchases only) you may need keep safe for any emergency.
Your expenses allowance will allow for Car maintenace, dental etc... plenty of stuff that you would have just paid for at the time on a card.
The following website will give you some guidance

http://www.beatmydebt.com/consumer-debt-solutions/living-expenses-guide.htm