Thinking about an IVA

vicky1001

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Hi All ,

I a new on here and would like to be on here the whole way through y debt process , i will fill you in on my stuation as im looking for some advice if that is ok

Me and my partner moved into our first house all was great and we had around £2000 coming in every month and the bills where getting paid on time every month.

A few months later 6 id say he got made redundant and the income went down to about £600 a month with this we had to pay rent/bills/food etc we considered some bad things during this time as life was hard we where not eating right paying just £25 week some weeks just £15 for food.

As a result we mounted up alot of debt on credit cards and my bf defaulted on some loans he already had one i think was for £10,000

5 months this went on for and then we had to move as he found work but we had mounted up alot of debt , we are on track and life is good again - but we have this cloud over our head a constant reminder of what it was like - we are on a DMP but it is going to take like 8 years to pay off the debt at the rate we can afford which is £110 atm

My questions are this -

If we where to take out an iva what are the main benifits as we dont own our own home we private rent

I have one capital one credit card that is not on the DMP and the balance of it is £200 atm that is what i owe on it


Would i have to mention this in the iva i also have a cashplus prepaid card and with this i can borrow up to £100 using a feature called iadvance and pay it back within 30 days - it says that it does not do any credit checks i was wondering could i still use and keep this on an iva

my list of current debts (do i have to declare them and give them up)

Next - owe £60 being paid off at rate of £20 pm
Capital one credit card owe £200 being paid off at £65 pm
ICS loan (btec loan) owe £630 being paid off at rate of £67 pm (this is the one i want to keep as i am studying )
Open university owe £230 being paid off starting in march at £37 pm (again would like to keep this as studying)

2 x 3 contract mobile phones one for me and one for bf totally £40 pm
1x 3 Broadband at £19 pm

1 television on 12 month rental contract with hughes for £45
1 Dishwasher on 6 month rental contract with hughes for £15

both of the mobile and broadband contract with one network which is 3 uk

How would all this be affected i really do want to know about the studying ones

And how would bankrupcy affect this if i had to - and would like to know more infomation about this

from vicky

vicki488

Hi vicky,

It's a tricky one! I had an iva from 2006 to jan 2011 and I entered one not really knowing all the facts (stupid I know but I was young and stupid). Looking back I wish I'd never gone down that route as 6 years later I'm trying to move out of my parents and can't get a mortgage and nobody will rent to me because of my adverse credit history. I was in what I thought was a secure relationship which turned out not to be so when we split up I couldn't get anywhere to live except my parents. I think if it's possible to come to an agreement with your creditors it's always best to do that. I would get some professional advice as everyone's situation is different. Good luck I know these are worrying times.

AlyBaly

I am not an expert but I am sure even if you come to an agreement with your creditors it will affect your credit rating so I am not sure there would be a benefit there, someone with more knowledge will advise you.
Speaking from experience though, we entered a trust deed (Scottish equivalent of IVA )3.5 years ago , its the best thing we ever did. Dont get me wrong its been difficult, very difficult at times but it gave us peace of mind, neither myself or my hubby were sleeping, we were scared to answer the phone or open letters. Entering into the Trust Deed meant that all stopped and more importantly we saw a way of sorting out the mess we had got ourselves into.

We kept our mobiles and broadband on minimum contracts. Sorry I cannot give you advice on your other questions

We make our last payment in January so we are hopefully nearly there. No matter what you decide, I hope it all works out for you.