IVA support and discussion thread

SIRENS

Thanks for your reply, it was in the usual, asked to remortgage but couldn't as affordability and my mortgage provider would decline, so the extra year was added

PrettyKittyKat

My understanding is that there is no income reviews during this time as your extension is in lieu of equity. However you are best calling your IVA company to confirm.

SIRENS

Thank you so much, I thought that maybe the case, but is shall contact them to clarify

Freeman85

Hi guys, I could really do with some advice. It's a couple of things.

I am currently about two years into an IVA. I am paying about £200 a month but still find things pretty tight each month. I am finding that the idea of any large expense leaves me very worried. Currently, my car has it's MOT in mid Feb and I am pretty sure it is going to cost £500 - £600.Luckily, the company I am working for is having a very good year, and I will be getting about £1600 extra on my Feb pay as a quarterly bonus after tax. I will have to give a lot of this to the solicitor as it is over my limit, but it will at least get me through this expense.

Moving forward, my girlfriend and I are aching to have a life together and move in together. Two years ago when I was advised the IVA over bankruptcy, I was told that it was possible to get a mortgage when in an IVA. After talking to multiple financial advisers this is apparently very unlikely and much more expensive. One even said it sounded like I had been mis sold the IVA. Plus, I am currently only paying £350 a month as a tenant, so any increase seems like such a stretch to get to live with her.

Sorry for the rambling. I guess I'm asking... should I still feel broke every month while in an IVA? Should I be able to have a normal life? Would bankruptcy have been a better option? Is there any way to make things easier?

PrettyKittyKat

Freeman85 wrote: »

Hi guys, I could really do with some advice. It's a couple of things.

I am currently about two years into an IVA. I am paying about £200 a month but still find things pretty tight each month. I am finding that the idea of any large expense leaves me very worried. Currently, my car has it's MOT in mid Feb and I am pretty sure it is going to cost £500 - £600.Luckily, the company I am working for is having a very good year, and I will be getting about £1600 extra on my Feb pay as a quarterly bonus after tax. I will have to give a lot of this to the solicitor as it is over my limit, but it will at least get me through this expense.

Moving forward, my girlfriend and I are aching to have a life together and move in together. Two years ago when I was advised the IVA over bankruptcy, I was told that it was possible to get a mortgage when in an IVA. After talking to multiple financial advisers this is apparently very unlikely and much more expensive. One even said it sounded like I had been mis sold the IVA. Plus, I am currently only paying £350 a month as a tenant, so any increase seems like such a stretch to get to live with her.

Sorry for the rambling. I guess I'm asking... should I still feel broke every month while in an IVA? Should I be able to have a normal life? Would bankruptcy have been a better option? Is there any way to make things easier?

It depends what you deem a 'normal' life. Many people live financially the way you are stating - and see this as normal. However when you have relied upon credit in the past this concept of only having the money in your bank account and having to forward plan for any expenses can feel alien. You should have a sundries and emergencies expenditure on your I&E - are you saving this each month? Do you stick within your budgeting guidelines? It is difficult and will take being strict and savvy - but these are good financial skills long term.

Only you can decide if bankruptcy is a better option for you. It is not too late to go bankrupt if you prefer however if you have a disposal income you will need to pay into this for 3 years and you will have the same difficulties in getting a mortgage as you are experiencing now - except it will last longer as your bankruptcy will 'restart' the 6 year clock.

Do you need to get a mortgage to live with your gf? Why not move into rented? This may be sensible to make sure you actually like living together before commiting to a mortgage anyway! Yes it is frustrating but in the longterm in 4 years you will be debt free, have a clean credit file to rebuild and have strict budgeting skills to enable you to then save the money you used to pay to the IVA each month.

logiebear

Car Insurance while on an IVA. It was never mentioned when I did the IVA 15 months ago but should I tell my insurer?


I pay monthly and just auto renewed last year. However I want to look around when it's due soon. I can't find anywhere on the quotes to put in that I have an IVA. Should I tell them or will it just flag up when I apply to pay monthly?


Thanks in advance x