New To This Site & Want To Be Debt Free

freshstartgirl

Hallo everyone !

Just thought I'd post my current situation on this board and hope that someone out there could give me a bit of advice.

I've built up some considerable debt over the last 10years (£30,000). I had to give up work 10years ago due to very bad stress and relied on credit cards to pay bills etc, etc - you all know the story ! I've been in regular employment again for the past 5years and have finally decided to do something about my debt.

I'm going to apply for an IVA - I wish to God that I knew about IVA's before. I've got an appointment with a money specialist at my local Citizens Advice Bureau next week. However, someone said that the CCCS has more 'clout' than the CAB.

Basically, has anyone out there won an IVA which was organised through the CAB ? Also, if there's anyone out there with the same amount of debt, how much are you paying each month through the IVA ?

I feel that I'm finally doing something about this and getting sorted and would greatly welcome any helpful info. that can be offered.

Many, many thanks.

:j

southwester_2

Welcome, cant advise but good luck

Rafter

fsg,

Not sure about your 'clout' statement. CCCS have a sister company called payplan that arranges their IVA. Unlike the companies you see on the telly, payplan is not out to make a profit and will not push you into an IVA if another option is better for you. Your IVA will only be accepted if 75% of the people you owe money to agree.

The amount you pay will depend on your income and 'essential outgoings'. Insolvency Practicioners (who arrange IVAs) have guidelines on how much you are allowed to keep and for what. The balance will be paid to your IVA to cover the costs of setting it up and managing it and distributing everything else fairly to your creditors.

You will probably have to make payments for 5 years, after which the remaining debt will be written off.

The fact you have an IVA will appear on your credit record for 6 years, so getting loans or credit will be hard if not impossible.

If you have your own home and car and other assets it is probably your best option. If however you have no assets you may want to consider bankruptcy. However, the court may not agree and if you are earning a reasonable wage they might insist you take out an IVA instead.

If you are earning at least £25k per annum, I'd say bankruptcy may not be an option. If you are earning <£20k, repaying £30k of debt is going to take you a long time and bankruptcy may be the best thing.

Hope you get some useful advice here and good luck with your meeting with Citizens Advice - I'm sure they can help you too.

R.

lynzpower

you can always post up your SOA here and we can take a look and see if theres any way for you to mke savings

freshstartgirl

Thanks Southwester, Rafter and Lynzpower for your comments. The 'clout' statement was not mine - the person who said it just wants me to go to the best set-up to help me get myself sorted out. Hopefully I'm going to do that - I have my first appointment to see a 'money specialist' next Friday and I'm worried/terrified but I've just got to do it !
:j

oops_a_daisy

Hi FreshStartGirl and welcome to DFW. Sorry not got any advice to give but wish you all the best - OOPS

Good luck