Oh God, CCCS Says I need an IVA PANIC!!!

getdebtfree

Hey all

After months of reading about payment plans, and still scared to do anything but watch my debt pile up.

I finally plucked up the courage to fill in the debt remedy at CCCS.

Now as I am just under 24k in debt, with three children, renting and bring in just under 2k a month with wages and tax credits.

I was expecting to do a payment plan.

At the end of it the computer says I need an IVA. This has scared me as an IVA is similar to being bankrupt.

I have my phonecall with CCCS tomorrow.

I am worried now will it still be an IVA after I spoke with them? is an IVA really that bad??

Im lost again!! I finally plucked up the courage to sort this mess out and I know nothing about an IVA.

Oh dear another sleepness night....:(

Marcus

antonic

As Capt Mannering would say "Dont Panic !"

Just because the computer recommends an IVA, it doesnt mean you HAVE to.

In my case, when I first contacted Payplan 7 years ago, they recommended an IVA to me, which I refused.

7 years on I am now virtually DF (2 instalments to go) with a trashed credit record but no IVA on my credit file.
My history will improve in time.

One more thing you should be aware about with regards to an IVA, it *MAY* invalidate any insurance policies you currently have AND you have to declare it in future, even if you do commit to an IVA and succesfully complete it.

debt_doctor

Hi,
Of course it is just a 'guide' computer programme, but unless there was a specific reason, bankruptcy and a DMP would be viable alternatives.
You might want to ask them why bankruptcy wouldnt be a better option for YOU rather than an IVA as you have no property to protect.
In an IVA you will pay your surplus income in to it for, probably, 6 years where as you would pay your surplus income in to bankruptcy for 3 years.

DD

getdebtfree

antonic wrote: »

As Capt Mannering would say "Dont Panic !"

Just because the computer recommends an IVA, it doesnt mean you HAVE to.

In my case, when I first contacted Payplan 7 years ago, they recommended an IVA to me, which I refused.

7 years on I am now virtually DF (2 instalments to go) with a trashed credit record but no IVA on my credit file.
My history will improve in time.

One more thing you should be aware about with regards to an IVA, it *MAY* invalidate any insurance policies you currently have AND you have to declare it in future, even if you do commit to an IVA and succesfully complete it.

Wow thats fantastic well done to you must be such a good feeling.

I guess all I can do is wait until tomorrow...and try not to worry

Marcus

antonic

getdebtfree wrote: »

Wow thats fantastic well done to you must be such a good feeling.

I guess all I can do is wait until tomorrow...and try not to worry

Marcus

It does make me feel good Marcus, and as I have been in your situation I can understand the blind panic when you realise what needs to be done to sort the problem out.

Any more questions, please post back again.

Depth_Charge

getdebtfree wrote: »

Hey all

After months of reading about payment plans, and still scared to do anything but watch my debt pile up.

I finally plucked up the courage to fill in the debt remedy at CCCS.

Now as I am just under 24k in debt, with three children, renting and bring in just under 2k a month with wages and tax credits.

I was expecting to do a payment plan.

At the end of it the computer says I need an IVA. This has scared me as an IVA is similar to being bankrupt.

I have my phonecall with CCCS tomorrow.

I am worried now will it still be an IVA after I spoke with them? is an IVA really that bad??

Im lost again!! I finally plucked up the courage to sort this mess out and I know nothing about an IVA.

Oh dear another sleepness night....:(

Marcus

Hi

Following on from others

Might also be worth a look at the debt, remedy resource and information tools below from National Debtline & the CAB, the more info you can get the better

https://www.mymoneysteps.org/

http://mymoney.nedcab.org.uk/moneyadvice/

getdebtfree

antonic wrote: »

It does make me feel good Marcus, and as I have been in your situation I can understand the blind panic when you realise what needs to be done to sort the problem out.

Any more questions, please post back again.

Certainly will do, probably have loads of questions.

When I decided to do this I just wanted to greatly reduce my payments..to make them more manageble..

They are my debts and I want to still pay as much as possible with the least damage to my credit ratings etc

headstuckinsand

getdebtfree wrote: »

Certainly will do, probably have loads of questions.

When I decided to do this I just wanted to greatly reduce my payments..to make them more manageble..

They are my debts and I want to still pay as much as possible with the least damage to my credit ratings etc

Just reducing your payments is not going to solve the long term problem that you have an unmanagable debt level (unless you know that in the near future you're going to come into some money!) .

If you go for a DMP you may well find that you're still paying 10+ years down the line, plus going on a payment plan would still affect your credit file albeit not in the same way as an IVA or bankruptcy.

If CCCS have recommended an IVA then it's probably because the assessment of your ability to pay your debts back tell them this would be the best option (NB: I'm not with CCCS in case anyone thinks I'm trying to sell IVA's). When I found myself in trouble I contacted CCCS and Payplan both of which gave me the details of all three options: DMP, IVA and bankruptcy. The DMP would have taken 13 years to complete whereas the IVA will be complete in another 2.5 years.

I'm not advising you to do one thing or another or saying that doing an IVA is an easy option but please don't disregard it on hearsay about how it affects your credit file. 6 years after you start the IVA your credit file will be clean.

Hope this helps and good luck with whatever you choose.

getdebtfree

headstuckinsand wrote: »

Just reducing your payments is not going to solve the long term problem that you have an unmanagable debt level (unless you know that in the near future you're going to come into some money!) .

If you go for a DMP you may well find that you're still paying 10+ years down the line, plus going on a payment plan would still affect your credit file albeit not in the same way as an IVA or bankruptcy.

If CCCS have recommended an IVA then it's probably because the assessment of your ability to pay your debts back tell them this would be the best option (NB: I'm not with CCCS in case anyone thinks I'm trying to sell IVA's). When I found myself in trouble I contacted CCCS and Payplan both of which gave me the details of all three options: DMP, IVA and bankruptcy. The DMP would have taken 13 years to complete whereas the IVA will be complete in another 2.5 years.

I'm not advising you to do one thing or another or saying that doing an IVA is an easy option but please don't disregard it on hearsay about how it affects your credit file. 6 years after you start the IVA your credit file will be clean.

Hope this helps and good luck with whatever you choose.

Hi

Yes the IVA sounds good

I am just worried that we could lose our car, its in the wifes name and she only 6 grand is her debt in joint names

The rest of the 18k debt is in my name.

Also just had my phonecall from CCCS, its just in the hands of the IVA team although the guy at CCCS passed it on to another IVA company.

This is because my wife is a self employed childminder, but she has not worked for three months and probably will not for the next year at least because of the baby.

I dont know why being self employed has any bearing on a IVA.

Any input guys?

Thanks

Marcus

headstuckinsand

Are you doing an individual or joint IVA? If it's individual on only your debt then they wouldn't touch your wife's car. If it's a joint IVA it's still highly unlikely you would lose the car provided your car isn't overly expensive and you need it for getting around i.e. to work, which most of us do unless you're very fortunate.

I don't believe the fact that your wife is self-employed is a big issue - they just need to understand the overall household income position which is obviously a bit more complicated with self-employed.

Depth_Charge

Hi

My understanding is that with Self Employed people and IVAs CCCS's policy is to pass them onto an outside provider which I believe is likely to be GT.

Maybe the CCCS poeple on here could confirm