We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
F&F IVA Question
I have been planning to go on a DMP for the last few weeks and have the set up nearly complete, waiting on new bank account. THe DMP would be a small/med amount on a med debt so would last 10-12 years unless I could up the amount
I have recently gained access to a 10k cheque from a relative and due to this I was advised both by SC and also a second opinion to consider a F&F IVA using this money. It would give a decent return to the creditors and also be completed straight away. The IP i spoke to for advice as a second opinion I am told is one of the best. The reason it may work is that my job is only a 12 month contract so a normal IVA wont work
This seemed a valid option even though I know it is as close to BR as you can get. However my main concern was to protect my livelihood and also my 3 kids as BR would make them homeless.
My question for advice is what do people think of this as an option and what is the true impact of an IVA. I am told it trashes my credit record of 6 years but the DMP does that also (maybe longer).
Also I am told it should not affect my career I am a CIMA accountant whereas BR obviously would. Is this true or will it really have an impact. Where I am now asked have you been BR, had an IVA in a credit check at the start which i hope they will complete soon but there is nothing I can see in the contract
JUst wanted to get an opinion on this it is keeping me awake thinking so wanted to check in to get some advice as I am desparately trying to avoid bankruptcy
I have recently gained access to a 10k cheque from a relative and due to this I was advised both by SC and also a second opinion to consider a F&F IVA using this money. It would give a decent return to the creditors and also be completed straight away. The IP i spoke to for advice as a second opinion I am told is one of the best. The reason it may work is that my job is only a 12 month contract so a normal IVA wont work
This seemed a valid option even though I know it is as close to BR as you can get. However my main concern was to protect my livelihood and also my 3 kids as BR would make them homeless.
My question for advice is what do people think of this as an option and what is the true impact of an IVA. I am told it trashes my credit record of 6 years but the DMP does that also (maybe longer).
Also I am told it should not affect my career I am a CIMA accountant whereas BR obviously would. Is this true or will it really have an impact. Where I am now asked have you been BR, had an IVA in a credit check at the start which i hope they will complete soon but there is nothing I can see in the contract
JUst wanted to get an opinion on this it is keeping me awake thinking so wanted to check in to get some advice as I am desparately trying to avoid bankruptcy
0
Comments
-
Crickey you were posting this as I was reading your other thread on the other board!
I am going to give you MY opinion of an IVA, I want you to bear in mind that I have said MY.. not everyone else's some speak highly of them, some think they are wonderful, for some they are the right way to go, for others they are not.
There are reasons why for some people and IVA is a good option as opposed to going Bankrupt. Mainly people who have something to lose, like a home.
I was told to go into one in 2005 when I was left by an ex partner with over £58k worth of debt, all bar one loan was entirely in my name.
I did not want to go BR, I wanted to do the decent thing and pay the money back, even though it was not entirely me who had spent it.
In 2007 I became ill, I did not work for 11 months, when I did return I could only work part time, and the IVA eventually failed due to this fact, they were very good for months and reduced the payments but in the end they said enough is enough, FAILED, it was around this time back in 2008.
I was at my wits end and a friend sent me to this site. What I gained here was support, and more than enough knowledge to eventually come to the conclusion that I should never have taken up the IVA, I do not own my home, it is a council house (when I eventually type up my entire story this week you may wish to read it by the way). My job was not going to be affected by going bankrupt even though I worked in a finance office I did not handle money, I am a secretary.
I had one option open to me, it was to go BR, I was horrified, scared and stressed out, bit like you are Ox. I have three kids but only one at home he was only 14 (now almost 19) but he was wonderful and supported me all the way through the most awful time. When you read my story you will see just how much pressure this IVA put him and my mother under and when it failed that only increased.
So for me the IVA was a bad option, one I should never have been advised to take. I was paying them so much money each month we were almost living on the bread line, without my mother then aged 72 who lived with us we would have really been snookered she still worked (and did til she was 75) and she helped us survive, then when I found out how much the actual creditors ended up with I was shocked and I even told the BR judge it was disgusting to think this company (will not mention any names here) had made so much out of it, and the judge agreed. He also told me I should have considered bankruptcy back in 2005 and not an IVA.
You have to look at all options, you have to then look at your own circumstances, you need to seek proper advice, and also take on board what people are saying here, but only YOU can make a decision, and that needs to be based on proper information.
My eldest son aged 33 now has just finished his IVA or so he thought, they have now come back to him and said due to the bonus he got a year or two ago he has to now pay them another £1700, he will now have it all over I think he said in June of this year, it has been a long hard slog, his credit rating is shot to hell, so is mine but I don't want any credit so it does not bother me in the least.
Whatever your decision is, you need to be careful what you do with this £10k cheque, as if you yourself pay off say one debt it could be seen as being preferential and that you cannot do I don't think, the other creditors would not be happy they did not get a share of it, on this you will need to get good sound advice.
When you say the IVA would be completed straight away, what do you mean by that, do you mean that the £10k would cover all the debts you have and leave you debt free? or that you would pay off that and then begin paying off the rest of any debt by taking on an IVA?
Anyway I will see if you have posted a thread in Bankruptcy and reply to you there, as I have taken that step and I can speak about my experience of it for you, as I have tried to speak about why and IVA was not the right thing even though I took it on.
Losing your home is not the end of the world you know, and I speak from experience on that, but I did not lose it due to bankruptcy I lost it years before due to total stupidity, another story though. Also doing another job is not the end of the world either, it is far more important to be happy and keep your family together, whether you live in a council house, a caravan, a mansion or sheltered housing, the most important thing should be being together and being happy and stress free.
RLSome Days are Diamonds Some Days are Stones,Sometimes the hard times won't leave meBSC 162:beer:Banktupt 22 Oct 2008 at 10am!0 -
i was told that maybe the 10k might be accepted as a F&F iva as i no long term job prospects for a normal one. it would give a 27p return so may work. TBH your last paragraph is exactly how i feel i just want to happy stress free with my wife and kids. i just am confused what will really happen with housing and also making sure kids have food and clothes and a good childhood
Who was your IVA with, also my concern is the potential length of my DMP0 -
i was told that maybe the 10k might be accepted as a F&F iva as i no long term job prospects for a normal one. it would give a 27p return so may work. TBH your last paragraph is exactly how i feel i just want to happy stress free with my wife and kids. i just am confused what will really happen with housing and also making sure kids have food and clothes and a good childhood
Right lets start with a few things:
I know you are stressed I have read your posts.
I have high blood pressure and know what stress can do to your health, so you need to take some time out each day to relax, easier said than done I know.
You need to make a list of the things you need to do each day, and make sure you do them. If you have had advice saying this £10k may be taken check that out, as I know nothing on that at all.
I do not want to bore other people here, so this reply is to YOU.
In 1990 I went to live in France with my then partner of 4 years and my two children (they were not his kids) aged 9 and 11. We let out our home, packed up everything and joined my mum who was working out there at the time and had found Mark a job. It was a new life for us.
My kids began at a French state school, my daughter was not happy, she missed her visits with her dad and her dog, and her friends however she did eventually settle down, but my son loved it, learnt French and Italian in no time. After 3 months I wanted to come home, but we stuck it out. 11 months later Mark just left a note that I and the kids came back to saying sorry but I have gone back to England!! Shock, horror, there I was with only a part time job looking after some extremely rich kids, and now alone with my own and no way to pay the rent, let alone get home. My mum found the money to get us back to England, and then the biggest shock of my life, our house had been repossessed we were homeless, Mark had been pocketing the rent money and not paying the mortgage.
Friends took us in, and then it was decided that the only way forward was for them to make us homeless so the council would deal with us. We had to come back to the county we had lived in prior to leaving which I did not want to do, but had no choice in. We were put in a hostel for 6 weeks, while the council found us somewhere to stay.
None of this was ideal, my daughter was now 10 and my son 12 and neither were in school, the council then gave us accommodation, it was close to the city centre, and it was far from great, and we had to share with another couple who had one young child. Although not great my kids and I took it on the chin, at least now we did not have to be in this hostel which in fact was a bed and breakfast hotel with just a bedroom and use of a kitchen with around 12 other families.
My son was really unhappy as he could not go to the school of his choice (had we not left he would have done, as I say we were moved back to the same city) my daughter however was happy, she was happy to be home in England. Within 2 weeks I found two jobs, one washing up in a pizza take away (a far cry from the high flying Secretary that I had been!) and another of a day in a video store, the one that just went broke. It was not easy, we did not have luxuries, but I was not on the dole, and I did not want to be. My kids were wonderful, my son would not bring anyone to the house though, he really was ashamed of where we lived, but it was a home, it was warm, we had beds, and I made it nice with some of the things I had managed to bring home, the rest would follow months later when I could afford the passage back for it all.
So you see I did not lose my home due to BR I lost it years before that, but it makes no difference when or why it was, what I am hoping to tell you is we survived. My two kids settled into school, we made new friends, things by Christmas (we came back in the August) had settled down. We had to do without things, designer trainers which had been the norm, were out the window.
There was no waste, I had to learn a whole new way of life, how to cope on little money, how to make food go further, how to cook really tasty good food. I worked in the video shop which was a bonus a mate gave us an old video player and I used to bring videos home for the kids to watch while I did the evening job. 3 months later I was promoted to manager of the shop, and was able to stop the evening job. It was little steps at a time. At no time did I ever consider that anyone would take my kids away, just because we were now much poorer, in fact we were far much richer in other ways, we played board games, we walked, went to parks, and boy did we laugh alot.
My kids were much older than yours, and I am not going to sit here and lie and say this had no affect on them, it did, but even they learnt that money does not grow on trees, and we became a very close knit happy family. A year later we got our own council house, it was not ideal but it was ours. 7 months later someone asked to exchange with us, we came and saw their house and I thought I had died and gone to heaven, it was only 3 years old, my two kids loved it, odd it was back in the same village we had left! in 1990 so the kids had friends that they knew which was wonderful for them. I still live in that house today, 20 years later.
You are worried about losing your home, well with 3 kids you would not be out on the streets, you would not starve either, and you would clothe your kids, you just get on and do it. I had no job I found 2, neither paying what I was used to, but we cut our cloth accordingly. We had treats by saving the pennies we could. I went without things so that my kids went without less.
Living in a council house does not bother me one iota, it is what is on the inside, the love, the family, it is what you choose to make of it. Over the years things improved (well until the next chain of events but that is the BR story not this one) I got a much better job, had another child at the age of 40 by the way, so you are hardly too old to have kids.
You want your kids to go to Uni, can I tell you something, your kids may not want to do that. I wanted my youngest to, he wanted to til he was 16 and then said no will take A levels and then that is is, you cannot foresee the future, you cannot force things on others when they are old enough to make up their own minds.
What you have to do Ox is make up your mind what is best for you, and your health, and your family. A house is bricks and mortar, a job is what you make of it, a career change is not always a bad thing either.
You have to stop living in the past, stop blaming yourself for things, change the things you can change, and accept the things you can't.
Someone asked me recently if I could go back would I change anything, my answer had to be no, as if I did I would never have had my youngest son, who I simply adore. Life throws spanner in the works, our job is to work out how to deal with them in the best way possible and move on.
I will also add that my experiences have enriched me as a person, while living through them I never saw that, and there were days when I was down and unhappy and annoyed that it had happened, I can only say that things improve, but you have to help them improve.
And I will share with you I have just been made redundant, and I am seriously not fazed by it, I probably should be, but the other things in my life have taught me very valuable lessons, as one door closes another one opens.
Take care.
I will be adding my BR journey and that may also give you some insight into that, but remember I had already lost everything, other than the most important things in my life, my kids, no one can take your kids and wife and they should remain the most important things in your life.Some Days are Diamonds Some Days are Stones,Sometimes the hard times won't leave meBSC 162:beer:Banktupt 22 Oct 2008 at 10am!0 -
£10k full and final IVA would offer a very good return to your creditors and it sounds like you have had some good advice regarding this.
You should check your employment contract to see what is says about an IVA or make an anonoymous call to the HR department and ask their advice.
Take some advice from an IP with good reviews, you really need some no nonsense advice otherwise i fear you will go around in circles and still be where you are now in 12 months time and that certaintly wouldn't be the best for you or your family.0 -
Anondebtadvisor wrote: ȣ10k full and final IVA would offer a very good return to your creditors and it sounds like you have had some good advice regarding this.
You should check your employment contract to see what is says about an IVA or make an anonoymous call to the HR department and ask their advice.
Take some advice from an IP with good reviews, you really need some no nonsense advice otherwise i fear you will go around in circles and still be where you are now in 12 months time and that certaintly wouldn't be the best for you or your family.
When you say £10k full and final IVA what do you mean by that, do you mean the £10k would clear all the debts and there would be no 5 years of payments? or is it now 6 years.Some Days are Diamonds Some Days are Stones,Sometimes the hard times won't leave meBSC 162:beer:Banktupt 22 Oct 2008 at 10am!0 -
A full and final IVA is one lump sum payment with no monthly contributions, they usually are proposed to stay open for 12 months to give enough time for creditor claims, monies to be distributed and the case closed. In reality they are completed a lot sooner0
-
Anondebtadvisor wrote: »A full and final IVA is one lump sum payment with no monthly contributions, they usually are proposed to stay open for 12 months to give enough time for creditor claims, monies to be distributed and the case closed. In reality they are completed a lot sooner
Thank you, in your opinion are the creditors likely to accept this with the amount owed by Ox?Some Days are Diamonds Some Days are Stones,Sometimes the hard times won't leave meBSC 162:beer:Banktupt 22 Oct 2008 at 10am!0 -
Where a debtor ( I hate that term) has minimal disposable income for a 5 year IVA, a full and final IVA often gives a greater return to creditors and that is what makes them attractive to them.0
-
Anondebtadvisor wrote: ȣ10k full and final IVA would offer a very good return to your creditors and it sounds like you have had some good advice regarding this.
You should check your employment contract to see what is says about an IVA or make an anonoymous call to the HR department and ask their advice.
Take some advice from an IP with good reviews, you really need some no nonsense advice otherwise i fear you will go around in circles and still be where you are now in 12 months time and that certaintly wouldn't be the best for you or your family.
This is the problem though, Ox has posted elsewhere that he currently has a very high salary which he needs to maintain his current life (high mortgage and partner cannot work due to cost of childcare for children) but his job would be affect by both an iva and bankruptcy as he has been told he would not be accepted for a job at his current senior level with an iva or br on his file, he currently is only in a contracted post for 12 monthsAug GC £63.23/£200, Total Savings £00 -
BR would mean no job
IVA unsure of current role and impact on that
DMP seems the only option to try and not lose house etc and that is tight and a small contribution0
This discussion has been closed.
Categories
- All Categories
- 347.2K Banking & Borrowing
- 251.6K Reduce Debt & Boost Income
- 451.8K Spending & Discounts
- 239.4K Work, Benefits & Business
- 615.3K Mortgages, Homes & Bills
- 175.1K Life & Family
- 252.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards