Thinking about an IVA.

UpToMyNeckInIt

Personally, I would advise stopping the loan payments, and other creditors (repay enough of the overdraft to keep your old account active though).

Use the money saved to build up a small contingency fund is what I suggest. Preferably withdraw it cash, so that it does not get wiped out as an 'initial IVA contribution'.

Once your IVA is up and running, you can re-deposit the cash into your new account.

Your new bank will normally assist in switching your DDs & STOs, and give you a switch date. Prior to that payments come from your old account, after that, they come out of the new one.

At this stage, when the creditors start phoning for missed payments, just tell them you are applying for an IVA, and often they'll put your account on hold for 30 days. (By the time they next bother you, hopefully your IVA will be underway).

Don't tell your 'old' bank until the last possible minute, as they may freeze your account.

Just my advice.

FiatFan_2

I'd agree with UpToMyNeckInIt above, make sure your priority debts are paid, mortgage, utilities etc and only get those DDs transferred to the new account

ami66

Thought I would just throw my story into the mix for those considering IVA.

Spent the last four or so years living off credit whilst trying to keep a family business afloat and to avoid making staff redundant. (Not sure why considering the way some members of staff behave but he-ho that’s a different story!) Finally got to the point in July when we realised we had to do something so I was made redundant but was lucky to get a job after a week on JSA.

We then tackled the IVA with help from Payplan. I know the advice is talk to more than one but to be honest my husband was so drained he couldn’t face another company and the advice we got has been good for us. We did a SOA and thought we could afford £600 for a joint IVA, advisor tore that to pieces up just about all our expenditure. We’ve just had our creditors meeting and our IVA has been agreed at £300 a month. Basically we have £300 a month more than we thought we could manage on :eek:

We were going to make token payments in November & December but the companies were so obnoxious with us we used the money for Christmas instead, so only paid mortgage and utilities. For the very first time we missed payments on cards and a loan but here we are in January with no debts, including Christmas ones, a bank account working in credit but a strict budget to stick with for the next 5 probably 6 years.

As far as the budget seems we’ve managed to stay with in it for the three months so far and by the end of this month will have saved some money towards next Christmas and have some cash in the emergency biscuit tin, and that’s after paying one cars road tax this month on top of the usual bills.

On the emotional side I’m fine with it, looking at as being a six year loan and then debt free. But it’s hit my husband harder as he feels like a failure. He can’t see the point in doing anything to the house even though we need a new lounge carpet and some painting done. As I pointed out the house isn’t going to be valued for another five years so if we can save for a few things we may as well do them sooner rather than later and enjoy them, then let it wear down just in time for the revaluation! :cool:

My biggest advice would be make sure your SOA is more than reasonable and think of everything to include and then a few 'cheeky' things after all you never know unless you ask. Some of our slightly higher than normal expense were allowed when we provided proof for the need ie my husband works 20 miles away and works 6 days a week so a lot of fuel needed.

The SOA must be realistic because as SMOYO says you can’t live on £35 a week for the next 6 years. Once the advisor told us what we should expect to be allowed I fought with the case workers to keep it as per her figures, to the point that when they wanted to cancel my home cover with British Gas I said I wanted a similar amount for ‘emergencies’ as my gas, electrics and water would no longer be covered and I would have to pay for repairs. I was allowed to keep my home cover! :rotfl:

oplus

One of my creditors said they would rather do anything than enter into an IVA because of the fees charged by IPs, another creditor said it wouldn't budge so I chickened out of trying to negotiate with any more snotty call centre staff.

Spoke to debt charity and they passed me on to GT who were amazing.

Dealing with creditors is a bit of a lottery and an IVA takes a lot of the pain away. However, if you have no assets you should seriously consider BR.

I still wonder if BR would have been my best option but at the end of the day the decision was mine alone, nobody pushed me into it.

Littlewhitedog

I am just two weeks into an IVA application and wish it was sorted, I am feeling sick with worry about what will happen and reading posts just hoping for something to lift my mood and take some worries-away. I know it is the right thing to do but it was not easy and I should have done it years ago. Wish me luck, thanks

UpToMyNeckInIt

Littlewhitedog wrote: »

I am just two weeks into an IVA application and wish it was sorted, I am feeling sick with worry about what will happen and reading posts just hoping for something to lift my mood and take some worries-away. I know it is the right thing to do but it was not easy and I should have done it years ago. Wish me luck, thanks

I too remember these feelings between realising I needed to sort my financial situation out, starting the IVA application process, and the 2-week gap before the creditors meeting - many sleepless nights.

My advice is to get all the requested information to your IVA provider ASAP, to get things in place as quickly as you can.

Once the IVA is in place, I found a sense of relief and can now sleep at night. You cannot put a price on that.

All the best, and let us know how you get on.