IVA advice needed!

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Hi not sure if I'm posting in the right place so apologies if not. I'm looking for advice in regards to my current situation in 2006 I took out an iva to cover debts of around £26000 I paid into the iva for three years then couldn't meet the payments when I had my son as I was living on benefits and the iva failed now 4 years later I have begun receiving letters from a couple of DCA's regarding the smaller amounts owed. Today I called one of the debt charities who are trying to get me to begin another iva , which I am loathed to do after paying into my last one only covering there costs and making no dint on my debts. So where do I go from here any help would be appreciated!

Comments

  • UpToMyNeckInIt
    Options
    Difficult to advise with limited information. However, assuming you have no assets like a property or valuable car, then a Debt Relief Order, or Bankruptcy are probably your 2 best options.

    IVA's are great (I'm in one), but only if you have assets to protect, a stable income etc. or if going BR could lose you your job.

    Debt Management Plan is likely to be a waste of time if you are on income related benefits.

    Option 5 I'm afraid is to do nothing, incurring the wrath of your creditors.

    Which debt charity is advising you? (I've got my money on Stepchange, advising you to do an IVA with Grant Thornton).

    Might be worth getting a second opinion from your local Citizens Advice Bureau, or National Debt Line.

    I think you are right to be wary of re-attempting an IVA - if it failed once, it could do so again.

    You have done the right thing though in wanting to tackle your debt. All the best, and let us know what you decide to do and how it all goes.
  • danilily
    Options
    Thanks for the reply I live in rented accomodation and do not drive, it was indeed Stepchange that I spoke to. I will get a second opinion as Stepchange advised me that all the money I paid into there iva would be given directly to my creditors but after a little research I've found out this is not the case and I don't want to get my fingers burnt again in a few years time still owing the same amount after making thousands of pounds worth of payments my main worry at the minutr is the threats from Fairfax and Fredrikson living alone with a little boy in the house I don't like the idea of them showing up demanding money. Can they do this or are they just chancing things the debts are from 2005?
  • UpToMyNeckInIt
    Options
    If your creditors do send a doorstep collector, just tell them (politely but firmly) where to go. They are not the Police and the have NO RIGHT OF ENTRY whatsoever - end of.

    It might ease the situation however, if you explain that you are commencing BR (or whichever debt management procedure you choose). This normally results in your creditors putting your account on hold for 30 Days (mine did when I was doing my IVA, never heard of F&F however, so this is by no means a dead cert).

    Again, CAB or NDL might be better placed to advise you on the best way forward.

    Good luck.
  • ClaireWilko
    Options
    As soon as I told my creditors I was arranging an IVA, the majority of my creditors stopped all calls and letters. Literally it was like turning off a tap! Virgin money were particularly lovely

    Barclays on the other hand were a nightmare. They would only hold the account for 30 days (not long enough to arrange a full iva) so point blank refused to stop phoning, which they did up to 3 times a day.

    Good luck with your journey, please post back as to how it goes!
  • FiatFan_2
    FiatFan_2 Posts: 269 Forumite
    Options
    Hi, when suggesting a second iva did they go through why your first iva failed and has that situation improved?

    I didn't think you could go into a second iva so googled it and it seems you can although the creditors would need to be assured that the second couldn't fail in the same way as the first.
    Roll on DFD, final payment 1st October 2017 :beer:
  • cheesedoffwithdebt
    Options
    as has been said its a little hard to comment without all the information, I am in year 3 of an IVA and whilst its hard going it was definitely the best solution for me- it sounds like it may not be for you though.
    So another vote towards you getting a second opinion- the charity that has not been mentioned is Christians Against Poverty https://www.capuk.org- forget the word Christian for a moment- they are very honest about what the best solution is for people, working on the basis that the best solution is as short a period of possible living on a very reduced budget. They also offer alot of help to their clients, I feel they may offer you the kind of support you need -no harm in contacting them.
    I used to volunteer for them, that's how I know- and I think you need that added support that things can work out-all the best.
    now debt free and determined to maintain good spending habits and build savings
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