really scared about my debts

susieanne

I have been doing my own DMP for about 4 years now everything been going ok . I pay my creditors very small amounts considering how much i owe them so basically i cant see any end to my DMP . I scares me so much the thought of still being in debt in another 30 or 40 years time .
It has been suggested to me that it may be best for me to do a IVA instead of DMP just wanted other peoples thoughts on IVA as i dont know anything about them but what i have been told sounds good to me as i would be debt free in 5 years is that right ?
I am really afraid that with my DMP all creditors leave me alone interest stopped years ago would i be rocking the boat by now suggesting IVA ?
What are the negatives about a IVA ?

sistafromanothermista

:wave:
http://images2.moneysavingexpert.com/attachment/ivaGuide.pdf

Read through this, it might help.

susieanne

Thankyou very much for the link that helped me

Although after reading it , it does sounds scary i think it still may be the best option for me . I have no equaty in our home well maybe a couple of thousand but theres no way our morgage company would let me remorgage anyway
At present theres no end date to my DMP and im struggling to pay the DMP some months at least after 5 years i will be debt free so maybe IVA is right for me .

scared-sick

susieanne wrote: »

Thankyou very much for the link that helped me

Although after reading it , it does sounds scary i think it still may be the best option for me . I have no equaty in our home well maybe a couple of thousand but theres no way our morgage company would let me remorgage anyway
At present theres no end date to my DMP and im struggling to pay the DMP some months at least after 5 years i will be debt free so maybe IVA is right for me .

I am in exactly the same position as you!

My head is banging trying to decide what to do for the best.
Realistically an Iva is the best option for me but it is so official it scares the life out of me.

To be honest my biggest fear with the Iva is the unknown. I have no idea how it might affect my future as you have to declare it for some jobs and on certain forms and applications etc not to mention mortgages. I have a mortgage now but if i wanted to move, could i ever get another mortgage?

Anyway, i am still weighing up my options so it would be interesting to hear what you decide to do too!

Good luck

National_Debtline

Hello there.

An IVA can be a scary prospect but they do have many benefits to them - a few of which you've already mentioned. The vast majority of them last for 5/6 years, as such you may be in a position to be debt free much faster than by using a DMP of via self-negotiating.

They are, of course, binding in their nature - which means that you should always enter into one on the basis that you'll be able to meet the payments for the full duration of the term. That said, modifications are possible if you do have a change of circumstances and most IVAs these days will allow a repayment holiday for up to six months should something unexpected occur.

The best thing to do is to do your research, consider where you might be in a few years time and bear in mind that once you are in to an IVA they can be very difficult to come out of.

Remember that an IVA is binding on your creditors too, this means that interest and charges are guaranteed to be frozen and that your creditors will not be able to badger you for payment or bring any action against you whilst it is in place.

We've written a fact sheet on them, which you can find here:
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=26_individual_voluntary_arrangements

Best wishes,

David @ NDL.

fatbelly

Without more detail, it's difficult to know which strategy would suit you best.

A statement of affairs would help if you want to do one.

However, you say that you are on a 30-40 year plan and only pay 'very small amounts'. This may mean that an IVA would be unrealistic and that bankruptcy would be a better option. Depends on a few factors.

If you don't want to do an SoA what about giving National Debtline a call and running through things with them? It's impartial advice, and free.

Lensman_2

fatbelly wrote: »

If you don't want to do an SoA what about giving National Debtline a call and running through things with them? It's impartial advice, and free.

+1 for this very well qualified advice.

Internet forums are generally informal (even MSE with the experts on here) - for something so important you need formal advice.

If you do decide on bankruptcy then the judge will need to know that you have had formal advice.

Please get advice from either NDL, StepChange or CAB.

Feel free to keep asking questions in the meantime - we are here as much for support as giving guidance.

missladyannie

I had an IVA which I paid off early with help from my FIL. They allowed me a payment break for maternity leave which was really helpful, and were very helpful the whole way through. I used Debtfreedirect. When we went for a mortgage though Santander said they would not lend to people who had a previous IVA, I cant speak for any other companies though.

HTH x

scared-sick

missladyannie wrote: »

I had an IVA which I paid off early with help from my FIL. They allowed me a payment break for maternity leave which was really helpful, and were very helpful the whole way through. I used Debtfreedirect. When we went for a mortgage though Santander said they would not lend to people who had a previous IVA, I cant speak for any other companies though.

HTH x

Hope you dont mind me asking, but was it your first mortgate or a remortgage? And did you get one in the end or just stop trying?

One of my worries is my fixed rate is up in 4 years....will the bank give me another one if i have an iva?

susieanne

Bankruptcy would really scare me i dont want to go there , thankyou everyone for your replys .

I have a mortgage and oftern thought i would like to move at some point but i very much doubt i would beable to re-morgage anyway on my DMP because of my credit score would be so bad , wouldnt that be the case with everyone on a DMP ?

fatbelly

Bankruptcy and iVAs are both formal insolvency solutions and people with them appear side-by-side on the insolvency register. If you're going down that route, it's a case of finding which one suits your circumstances best.