Worried and new to all this

buttons023

Hello,

Last week I decided to take action about our debts, unfortunatly life events have hit us hard the past 5 years and has seen us struggiling hence debts have built up. All £35,000 of it im ashamed to say.:o

We have been to a free advice service reccomended here and we are having a detailed phonecall meeting next week to look into an iva.

I recieved information via the post and it says that assests will be taken into account but due to my daughters disablity i can not be without a car, its a 03 reg car and nothing posh but could they take our car away?

Also it says have i taken credit out in the past 12 months, well 6 months ago when our sofa broke so we brought a sofa on the 4 years interest free deal which works out at £12 per month which is managable but could they take the sofa back if we go on the iva?

Lastly i am concerned about this rule of credit in last twelve months but the thing is we have been forced to live on credit the past few months does that mean we cant have an iva even though we have now stopped and trying to sort the situation out?

Im so confussed and worried its making me ill with the stress, I know its partly our fault we are in this situation but now ive taken my head out of the sand and am dealing with things.

Thanks for reading

techno1029

Not an expert but have been thru the IVA system so can share my experiences. If your car is a modest one with no massive value you will be able to keep it. The sofa credit as long as you can manage the payments will also be fine. Many peeps were living off credit until the final death throws when you realise you need serious help so you are not alone in this one. Good luck with ur IVA.

chickenjo

I'm in the process of getting an IVA and have just gone through the detailed phone call with the insolvency practitioner. I was told that the creditors want the plan and your life to be achievable and realistic. If you need a car to live, work etc and its sensible and fit for purpose (ie not a porsche!) then you will be able to keep it. However, if the car has not been fully paid for on car finance then this may be an issue. I was lucky as the car is still being paid for but its on a personal loan. Good luck.

National_Debtline

Hi buttons

Re: sofa - no it can't be taken back if you default on the terms of the finance agreement, IVA or not. All you will owe is the money, not the item.

The question about credit taken out over the last 12 months may be trying to establish how likely any creditors are to reject the proposal - if, for example, you've very recently taken out a large loan and then sought an IVA within a matter of months, that lender may well reject the proposal which could scupper it.

NDL