I think an IVA is the only way forward - advice needed please

silverlining?

Hi there,

I am new to this forum and slowly reading the posts in this room for research/advice, but thought I would post too.

A bit of background..... I have around £30k in unsecured debts that have built up over the last ten years by me consolidating and then taking out borrowing more to live. Its finally come to a head and I am paying out around £700 per month on debt payments. On a salary of just £1100 per month, I cannot go on.

At present I am on maternity leave from a full time job and due back in the Summer. With my first child and up until I left to have the new baby my Mum was my full time child care (asking no payment and she gave up work to do this for me), however, life has flipped on its head and her relationship has broken down my with my step-dad and as he was supporting her, she now has to go out to work to live herself.

My husband and I are now in a serious problem with childcare and debt and not being able to afford either.
I have never missed payments or defaulted on any debt payments (or any other payments) - in essence my credit rating is ok, but the extent of my borrowing is obviously a huge problem. All debts are in my name.

I may need to not return to my employment and therefore my only income will be benefits (tax credits and child benefit - will be around £500 per month), plus my husband's salary. After living costs we will be left with around £160 per month to go towards paying debts.

So.... I am considering an IVA but I am not sure I will accepted if I am effectively not going back to work out of choice (its not really out of choice, but its not losing my job or being made reducdant - IYKWIM). My payments will be so low that I doubt my creditors will accept it and it all just seems so scary.

I have a telephone appointment with CCCS on Thursday and I am sure I can go through all this with them then, but thought I would post in here aswell (if only to get my thoughts down on 'paper' as it were).

I am hoping to start nurse training next September, so I will then have a bursary which will probably mean I can make slightly higher payments then but at the moment a lot of my income (ie benefits payments) are estimated and its hard to know what my actual income will be.

So, does any one know whether these are valid reasons for an IVA, and whether it would be accepted by my creditors on this basis?
Also I would love some idea of personal experiences of IVAs - both positive and negative. I would hate to get two years into it and it be the worst thing I could have done.

FoggyBrain_2

Hi there. First off you do need to speak to other companies to compare advice and "feel" for how they operate. there is a good chance that CCCS will not offer an IVA, as they do tend to prefer DMP's.

Please pop over to https://www.iva.com where you will find a comparison site for many IVA firms. Have a chat to a couple -- it's free and without obligation. You might also find a visit to https://www.iva.co.uk useful. It's a lively forum full of people going into, already in and also out the other side of IVA's/ Quite a few IP's also post there.

National_Debtline

Hello there,

Sorry to learn about your current situation. Ensure that you do as much research as you can as there are many different options out there to help manage debts. IVAs can be a very successful route but you do need to be aware of all of the pros and cons before you make a decision about what's best for you. If your income is likely to fluctuate you may wish to think about an option that gives you greater flexibility, IVAs can be difficult to modify once you're into them (although it's not impossible). If you have a mortgaged property there is a high chance that there may be an equity clause to consider. If you have no assets then you could also investigate the bankruptcy route although it's vital that you're informed about the potential implications.

There is no one size fits all debt solution, which is why it's vital to seek 'holistic' advice to ensure that you are aware of all potential options; this should allow you to make an informed decision as to what is the best option to meet your needs. IVAs are an excellent option for many people - just be sure to think about their binding nature and ensure that you choose a firm that adheres to the 'IVA protocol'.

Best wishes,

National Debtline.