Think IVA was wrong choice...

rufus79

A year ago I got an IVA, but I think it was the wrong decision. I owed over £35,000 and the IVA was for £350 a month, which I have managed each month without fail, but now things are going a bit mad.

My car died a couple of weeks ago, totally, and I cannot replace it. Without it, I am finding it nearly impossible to get to work by train, and it is costing me a fortune (significantly more than driving did). I am also having to walk several miles a day to get to and from the stations. Basically, a 40min drive to work takes nearly 2hrs walking and 2 trains, and I am broke and exhausted. Realistically, I am going to need to change jobs as there is no way I can afford a new car or carry on doing this long term.

Also, with hindsight, I think bankrupty would have been a better option - I have no assets etc. Is it still a possibility? And if so, should I go for it straight away or wait until I have changed jobs?

Richard_S

Hi rufus,

Your first port of call should be one of the debt charities, CCCS, CAB, National Debt Line. Their advice is free, impartial and the advisors are professionally trained.

I think you need confront the problem immediately and the decision as to whether you should change jobs or not doesn't really come into it. I don't think anybody on this forum would encourage you to declare bankruptcy, that's entirely your decision and one of the debt charities will be able to help you make an informed decision.

Wishing you all the best and let us know how you're getting on,

Richard

gettingitsorted

I echo what Rich has said Rufus,the debt charities are all great and impartial and will help you not any money making fims .With the CAB you should ask to speak to the money advice unit .

https://www.cccs.co.uk
https://www.payplan.com
https://www.nationaldebtline.co.uk.

rufus79

CAB come into my office on a Tuesday, so I am going to go and see them at lunchtime. I am feeling a bit lost about it tbh, I wish I had got better advice last year rather than going with a company from the back of the paper for my IVA (that said, they were fine, but did not give me the option to consider bankruptcy as of course they make their money thrugh IVAs). I think I feel a bit getted that I am thinking about this now when if I had done it a year ago I would almost certainly be being discharged about now.

wherediditallgo

Unfortunately, there seems to have been a lot of companies in the last year or two offering help with debt problems who steer people towards an IVA asap. I can't remember the figures, but I recall that a significant percentage of IVAs fail after the first year, because people's circumstances usually change within that time, but they struggle to keep going, believing they have no choice.

They do. Echoing the advice above, get in contact with the free services above. They will help you do an updated income & expenditure sheet, which can be put forward to the company running your IVA so that it can be reviewed. It may even be possible to have your IVA run by one of the free companies - it's worth looking into that too. If all else fails, you may have to go BR, but take the advice from the above companies, rather than the touts. Above all, don't panic - they'll help you, & you'll get loads of free advice here too.

rufus79

Well, CAB lady was great, although she said it was not her strongest area. She was so friendly and matter of fact (it amazes me how this gentle, middle class lady could be so supportive!) and gave me some bits of advice, the main one to be to get in touch with CAB in my home town, who apparantly has someone who works entirely on insolvency support, and also works a Sat morning, so I will be making an appointment. She thinks it is quite likely, whether I decide to stick with my IVA or go for full blown bankruptcy, that the OR would allow me to get another little runaround, as she agrees that my job is not sensible long term without a car, and that my income would be significantly lower if I was to get a job near home. So Saturday I will be down there to talk it through more.

One thing - does anyone know what is a reasonable figure a week for food, etc? I was looking through my paperwork last night, and mine from last year seems very low compared to the CAB leaflets I was given yesterday.

Thanks