Thinking of IVA

Mrslolly

Hi all,

I am weighing up my options on whether or not to apply for an IVA. We currently have just under 30k debt (Not including my car which I need as I do a 70 mile round trip for work each day).
Both my husband and I are a little wary of what to do, as approx 16k of this would be paid in 3.5 Years. However, we dont have enough money to get us through the month, we run out after about 2 weeks and end up borrowing of parents or the dreaded pay day loan, so when we get paid again, thats gone. Robbing Peter to pay Paul and im worried even before we get paid. We have thought about the possibility of going BR but as you can see it seems like a drastic measure for what seems like a short period of time, however that "Short Period" of time seems like a lifetime away. Our "travel to work" re PETROL costs are £400 per month alone as we both work approx 30 miles away from our home. What to do ?

JustinCredibleGillespie

Hi there dont panic. This forum is full of advice. Have you spoke to CAB or one of the other free debt charities like CCCS? They should be able to help you decide what is best. Maybe a DMP would suit you better and you could ask for the interest to be frozen etc.

Regarding your petrol costs, could you sell your car and then purchase a second hand diesel? It would be much more cost effective as £400 a month is very high.

Hang in there, Everyone is here to help

Mrslolly

JustinCredibleGillespie wrote: »

Hi there dont panic. This forum is full of advice. Have you spoke to CAB or one of the other free debt charities like CCCS? They should be able to help you decide what is best. Maybe a DMP would suit you better and you could ask for the interest to be frozen etc.

Regarding your petrol costs, could you sell your car and then purchase a second hand diesel? It would be much more cost effective as £400 a month is very high.

Hang in there, Everyone is here to help

Thanks for that. The fuel costs are for both cars, Diesels. I was thinking of ringing them tbh, as you right, I dont really know what's best. However with a DMP and reading other posts on here, they tend to go on for years don't they.

JustinCredibleGillespie

Each individual circumstances are different and also bankruptcy is a very huge step to consider especially if you have a mortgage etc.

An IVA may be best for you and OH. I'm sure someone with more experience will come along soon and give you some sound advice on what to do.

FoggyBrain_2

Hi there, Might I suggest you pop over to https://www.iva.com where you will find a list of reputable firms with reviews. Have a word with a couple to discuss all options.

Do you have a house to protect, or do your jobs preclude bankruptcy ?

BR will cost you 700 each up front, you will most likely have to pay over your disposable income for 3 years, and your house ( if you own it) could be at risk, as could the cars.

DMP will cost you nothing, but could go on for decades, as not all creditors will co-operate.

IVA should again cost YOU nothing (fees will come out of your monthly payment). Will last 5 or 6 years and you will pay back more than you would in BR.

None of these are easy and all are serious undertakings. You say most of your debt would be cleared withiun 3.5 years ... how much extra debt do you think you will rack up tryimg to keep up with payments in the meantime ?? From experience, those clear debt days never arrive.

FavDaughter1

hi, we've been just where you are,it is awful but you can sort things out. we went firstly to our local CAB,had to wait about a week to be seen so contact them asap if you think that'd help you. the CAB use one or two IP firms,you don't have to use who they suggest - we didn't,armed with more information we researched&found our own.

we went the IVA route looking at BR as our 2nd choice(although given the level of mess we were in a IP did say really BR would have been more advisable:eek:).

when you go to the CAB or ring to speak to a IP try to have a list together of all outgoings,it'll help speed things up.

you need to get a new bank account set up away from creditors,it has to be a basic bank account,we chose the Co Op,they are IVA/BR friendly. get this organised & set up ready for what ever you decide to do.

the way you're coping/managing at the moment can't go on. it's a frightening place to be but you can get help and be able to breathe again!
we were paying for food&fuel on cards,never paying it off,it grew &grew. now we've got cash for food every week.

post here any concerns etc & someone will get back to you. you've already taken your first step,well done - it takes courage x

Mrslolly

FavDaughter1 wrote: »

hi, we've been just where you are,it is awful but you can sort things out. we went firstly to our local CAB,had to wait about a week to be seen so contact them asap if you think that'd help you. the CAB use one or two IP firms,you don't have to use who they suggest - we didn't,armed with more information we researched&found our own.

we went the IVA route looking at BR as our 2nd choice(although given the level of mess we were in a IP did say really BR would have been more advisable:eek:).

when you go to the CAB or ring to speak to a IP try to have a list together of all outgoings,it'll help speed things up.

Thank you all so much. Trouble is hubby a little bit Proud and he just seems to think everything wil be alright. I would like to think so, but dont think its gonna happen.


you need to get a new bank account set up away from creditors,it has to be a basic bank account,we chose the Co Op,they are IVA/BR friendly. get this organised & set up ready for what ever you decide to do.

the way you're coping/managing at the moment can't go on. it's a frightening place to be but you can get help and be able to breathe again!
we were paying for food&fuel on cards,never paying it off,it grew &grew. now we've got cash for food every week.

post here any concerns etc & someone will get back to you. you've already taken your first step,well done - it takes courage x

Thank you all for your help, I will let you know what happens !!

debtfree2016

Hello Mrslollly, you have come to the right place and have had sound advice so far.

FavDaughter1

hi,yes let us know what you decide,post questions,there's always someone who'll help. read up as much as you can.

don't forget,however overwhelmed you might feel you're not alone,hug x

FavDaughter1

just re read what you said about you're hubby. don't worry. my husband had his head firmly(terrifyingly)in the sand:eek::eek::eek::eek:

his ability to rationalise what a mess we were in & how he'd "delt" with things scared the hell out of me(he'd been taking extra cards,loans etc out which i didn't know about:eek:). you carry on and re search your options that way you'll be prepared when he finally lifts his head-he will!


you often see posts where one half of a couple is like your hubby,it takes time to "face it" and courage! in the meantime big hug x