about to sign an iva...feeling unsure

debbiee_2

My husband and I are one step away from signing a proposal for an IVA.we have previously been in a debt management plan but have seen the debt decrease very little.
I don't know if it is just nerves or not but beginning to feel really scared.i know this is a legal proposal and I dnt want to get anything wrong

My husband receives DLA and on our proposal they have put this down as used for transport,but it rarely is,its used for living and unfortunately he smokes.before everyone says give up.he has spoked since he was 13 and tried several times and has been unable too

i'm scared that we are lying by agreeing to this.but it looks like they have disregarded this as income so if I say its not used for transport they will want it all as additional income
i'm just feeling a bit unsure and don't want to sign the proposal until completely sure

can anyone advise

Anondebtadvisor

DLA should be used for expenses relating to the disability, so therefore the DLA does not directly go to creditors.

Smoking of upto £60per month is a allowable expense but one that creditors usually attack. If you have any doubts seek alternative advice before you proceed :-)

rabbit_burrow

They have most likely put it as transport as smoking doesn't come as a legitimate expenditure.

Rather than worry about what the have put as expenditure, worry about the impact an IVA will have on you.

Are you certain that an IVA is your best option, or is it from advice of a debt company rather than an free impartial charity?

Are you 100% certain that you couldn't pay off your debts yourself?

Also, do you own your home or do you rent? If you have no mortgage or car that you rely on, then bankruptcy might be a better option.

An IVA lasts for around 5 years, and you must stick to the payments (unless your IP arranges a variation with your creditors) for that whole period, otherwise it fails and you could end up bankrupt anyway.

If you are positive that an IVA is your only option, then it is your only option to sign. But if you are having any doubts then you need to research it more. An IVA affects your credit obtaining abilities (including some insurance companies and mobile phone contracts etc) for at least 6 years.

rabbit_burrow

Anondebtadvisor wrote: »

DLA should be used for expenses relating to the disability, so therefore the DLA does not directly go to creditors.

Smoking of upto £60per month is a allowable expense but one that creditors usually attack. If you have any doubts seek alternative advice before you proceed :-)

We were told different to that, not smokers anyway so it wasn't applicable, but as our life insurance had to be cancelled as it wasn't 'allowed' (don't know how the mortgage would've got paid if one of us had died but hey ho) so 'vices' weren't allowable either.

debbiee_2

hi thanks for replies so far.
we have been in a debt management plan for years and paying for the priviledge and see no real reduction to our debt.
we are now in negotiations with payplan,so yes a fee free organisation.
we are unable to go bankrupt due to my husbands occupation and my dad is elderly and unwell and I couldn't bear him knowing at his age.

debbiee_2

also payplan have assured us that if an iva is not accepted by our creditors that wil propose a new debt management plan

Anondebtadvisor

Whether smoking would be allowed or not is a decison for the creditors, if someone smokes it is an allowable expenditure but if creditors allow that expenditure is another matter

rabbit_burrow

debbiee wrote: »

hi thanks for replies so far.
we have been in a debt management plan for years and paying for the priviledge and see no real reduction to our debt.
we are now in negotiations with payplan,so yes a fee free organisation.
we are unable to go bankrupt due to my husbands occupation and my dad is elderly and unwell and I couldn't bear him knowing at his age.

Unfortunately you still appear on the Insolvency Register with an IVA, but of course, if your husband occupation would be affected, then BR is defo not the way to go.

sugarplum10

how can it affect his occupation if he is claiming DLA??? does the DLA mean that he is currently not working or planning to eventually, if so this will change your circumstances again and mean changes have to be made to the IVA to reflect your new income???