Opinion on IVA's please

Elsie2_2

I was wondering if it is worth thinking about an IVA. I'd like to know people's opinions.
I have been handling my own debt for about 3 years and although i have atp's with all my credittors and no int or charges are being applied, it will take me forever to pay off my debts. I hve reduced my outgoings from £550pm to £70pm.
Is it worth me considering an IVA as at least i can be sure that in 5 years i would be debt free.
I will be selling my house within the next 6-12 months with a view of moving to the isle of man and i haven't decided yet whether i will be renting or buying, would an IVA have a more detrimental impact t getting a mortgage than my current situation of atp's on all my accounts?
Maybe i just want to see a light at the end of the tunnel, but it seems to me that i will be paying for the rest of my life.
Also if i went for an IVA, would the money i've been paying for the last couple of years on the arrangements count towards an IVA or would it start from the minute i entered into the IVA?
Any thoughts??

moxie_2

I'm not an expert but have been looking into a possible IVA for myself, although I have now decided to stick with my DMP. Have a look at the Payplan or CCCS web sites, there's lots of information there. You could ring one of them for some (free) impartial advice too.

Elsie2_2

Yeah, i have had advice from them previously and did consider IVA a long time ago and decided not to bother, but when i think that over the last 2-3 years, i could have been paying towards an IVA. I'm having a bit of a panick about my credit file aswell. Stuff lasts on the credit file for 6 years once a DMP has finished so if it takes me 10 years to clea my debts then its another 6 years for my cred file to be repaired.
I guess i'm umm-ing and ar-ing in my head as to which is the better way to go.

CLAPTON

without seeing a SOA and general details of your situation (children, OH, value of property and size of mortgage etc) its not possible to say.

Elsie2_2

Whats an SOA??

medman

Statement of Affairs, good place to start is:

http://forums.moneysavingexpert.com/showthread.html?t=107280

Good luck

Elsie2_2

Thanks medman, i was a bit confused by that. Its an income and expenditure isn't it? I did that a long time ago and do regularly update this. I pay my credittors on a pro rata basis, and haven't missed paymnts since setting them up a couple of years ago.
If it helps someone advise me,i could post my SOA/I&E.

Thankyou all i advance. :rotfl:

CLAPTON

whether or not an IVA is appropriate depends upon the level of debts, the available monthly 'surplus' and whether you have any assetts (a house with equity that can be used to pay the debts).

MIVAA

Hi Elsie2

Clapton's right.

Whether or not an IVA is a suitable solution for you will always be dependent on your personal circumstances.

IVAs are not a 'one size fits all' debt solution, so it's not possible to give the advice you require, accurately, without the full details of all your personal circumstances.

If you would still like someone to advise you on your best route out of debt, you'll have to answer some key questions that will help us see where you're at now.

1) How much unsecured debt do you have, and is it all in your sole name?

2) How many creditors do you owe the money to?

3) What is your disposable income before you repay any payments to your creditors? (i.e. your household income minus all your household essential living costs)

4) How much do you think your house is worth?

5) How much do you owe to your mortgage company? (and are there any secured loans to include on top?)

6) Do you own your property by yourself or is it jointly owned?

7) If you do have a partner, do they also have problems with their creditors?

8) Do you have any dependent children?

The answers to all of these questions will help us to help you understand the choices you have available.

Once you understand the choices, warts an' all, you'll find it easier to make your mind up as to which one is best for you.

Depending on the answers you give, you may find the IVA wouldn't be a realistic and suitable option anyway.

Elsie2_2

Ok, well

1 - i have 28,800 of unsecured debt.
2 - I owe 4 credittors
3 - I have about £150 left over after all essential bills (thats a bit of a gesstimate)
4 - My house is worth about £95000
5 - I owe 78000
6 - Its jointly owned with my mother
7 - My partner has no credit problems
8 - No kids

Hope this helps. Thanks in advace.

CLAPTON

can you just claify about the house....it is jointly owned by you and your mother, so when it is sold you will both have half the equity each .
say sale at 95000 costs 1000, mortgage 78000 so equity 16,000 so 8,000 each?
would your 8,000 be available to pay into the IVA?