IVA or not?

stevus_uk

I know I've asked another question which is on completely different lines to this one, but suddenly I've taken notice of the debt I've been surrounded by for a while and decided to do something about it!

I've had some advice from a company tonight and they have suggested the IVA route to work out our debt. While we are looking to get some additional independent advice from a free advisory service, I wanted to find out if anyone in the forum has experienced an IVA and its effect on them (whatever that means: financial or personal)?

I'd appreciate some advice about the pros and cons from personal experience - I've read MSEs guide, but I wanted some first-hand accounts. Really grateful for any response.

Find_The_Real

Hello Stevus

An IVA is a form of insolvency that generally last 5 years with normally an equity release in the final year if you own your own home. Included into that will be a normal monthly payment plus bonuses and windfalls so it is for the long term.

What some companies fail to mention is that although a reduced amount to be paid back is agreed, the debt remains the full amount plus IP fees plus statutory interest until the completion certificate is issued and this is where a lot of the problems can arise.

A lot depends on the level of debt and equity if you have a home as some other forms debt management such as a DMP may be more beneficial.

If you are willing to give a bit more info about the levels of debt, people may be able to advise a bit more about your options.
It may be an idea to check out the IVA board as there is a lot of advice on there to give you an idea of the pro's and con's.

http://forums.moneysavingexpert.com/forumdisplay.php?f=159