advice, thoughts, experience IVA

mum2one

Hi
Sorry if this a bit vague, but I feel that my one only option may be an IVA (80% sure it be that route), I've dipped my toes so to say in doing the online workbook of cccs, but I'm not 100% ready mentally to take the step across and finally admit that I need help.

I'm just wondering how other people have felt on an IVA, more your experience, and is there anyone that got turned down and had to go down the bankruptcy route.

at a rough guess I have 7 or 8 creditors, with a ballpark fig of 23k, the main % of the debts is with one bank, loan, credit card and overdraft, so they make up over the 75% needed, even if I used the others the debts don't come to anywhere near that mark.

I know its something i have to do, but just wanted some tips, ideas, and how you felt etc, and your time plans.

Thanking You all in advance xx

FoggyBrain_2

Might I suggest you pop over to https://www.iva.com (and sister forum on iva.co.uk) and speak to a couple of the firms recommended there (it's free and impartial). It's always good to get a few opinions (as well as helping you get your head around things). Whoever you go with (if you chose IVA) you are stuck with them for 5 or 6 years, so it's a good idea to get a "feel" for how they work and choose someone you are comfortable with.

debtinfo

The main problem is not with getting them accepted, most good IP's will come to an agreement so that it will get accepted. The problem is with seeing out the full term, An IVA only works if you complete the full term otherwise you get all od a large section of your debts back. Most people at the start think that it will never happen to them and they they will do whatever it takes to complete but the stats show that about 1 in 3 IVA's fail during their term due to various reasons, either it was not correct in the first place, or people find it increasingly difficult to keep to the budget over an extended period of time or their circumstances simply change. Most of those that fail end up going bankrupt in the long run.

Not that i want to put you off of course because if 1 in 3 fail then of course the other 2 in 3 complete and the people walk away debt free, but it is something you need to be aware of

FoggyBrain_2

What debtinfo says is very pertinent. A lot can happen in 5 years, so make sure you start out on a realistic footing. Many people (especially in older IVA's now) were "bullied" into accepting unrealistically low living allowances. It is your IVA and these things are open to negotiation (another reason to find an IP you can work with. There is a useful living expenses guide on beatmydebt.com but use your own spending figures, some will come in higher, some a little lower.