Newbie considering IVA?

naomiindebt

Hi all! I've read so many posts I feel I know some of you already!

Well, after realising the extent of our debt, me and my hubby did a debt remedy on CCCS website. That has recommended we do an IVA - which I have an interview arranged for monday evening to start arranging the IVA.

I felt really happy as this seemed an affordable option for us as we owe £40642 and the IVA would be for £374 (amount left over after our budget). But the more I read about IVA's the more worried I become...

I thought that the IVA was a set amount (£374) over the 5 years but I have read on here that it can be reviewed and increased? Is this correct?

CCCS also offered a DMP but with our amount of debt it would take 9yrs 1mth to clear, surly the IVA is a better option?

I would be most greatful for any opinions, and if anyone has an IVA how are they finding it?

Thanks all x

doelani

naomiindebt wrote: »

Hi all! I've read so many posts I feel I know some of you already!

Well, after realising the extent of our debt, me and my hubby did a debt remedy on CCCS website. That has recommended we do an IVA - which I have an interview arranged for monday evening to start arranging the IVA.

I felt really happy as this seemed an affordable option for us as we owe £40642 and the IVA would be for £374 (amount left over after our budget). But the more I read about IVA's the more worried I become...

I thought that the IVA was a set amount (£374) over the 5 years but I have read on here that it can be reviewed and increased? Is this correct?

CCCS also offered a DMP but with our amount of debt it would take 9yrs 1mth to clear, surly the IVA is a better option?

I would be most greatful for any opinions, and if anyone has an IVA how are they finding it?

Thanks all x

When you speak to CCCS on monday night they will explain about reviews etc.

The normal way it works is you will be set a monthly amount. In your IVA agreement it will usually ask for a review anually which will take into account any payrise etc but remember your outgioing will also rise due increase in household bills etc.

If you have property you may also have a clause that you will have to release some of the equity towards the end of IVA. Remember the point of IVA is to get as much of the original debt beck of you to pay to the creditors.


I would say though when entering our IVA we owed £110k and we will be paying back approx £65k back because of overtime that we have to pay 50% to our IP. IVA are not for everyone, it was best for us because we had a house to protect and I would have lost my job if we had went bankrupt. Please look at all options before you decide anything and ask as many questions on here as you need to.

naomiindebt

We don't own our house or have any assets so thats not a problem. My concern is that there is no point working overtime if it all gets taken by the IVA - It's not going to shorten the term either! Thanks for advice - I await my call!