Thinking of entering an IVA

Mart34

Hi Guys,

As the title says, I'm thinking about entering an IVA, but I'm unsure as to whether to go ahead with it.

I currently pay my debts by way of a DMP, but it's probably going to take 10 years for me to clear my debts. An IVA is obviously paid over 60 months then at the end all remaining debts are written off.

The only thing that puts me off is I've read on the internet, any assets worth over £1000 are taken to be sold then all monies put towards clearing Debts. The only asset I have is my car, which is worth in the region of £2,500, if I go ahead with the IVA would i risk having to give up my car, or is their a way of avoiding giving up the car.

The reason I ask, the car is a very important part of my employment, basically If i don't have the car I would find it very difficult to get my family to work, school and getting myself to work.

Thank you in advance for any response.

Foxy-Stoat_3

I think you have been reading the wrong internet !!!

Unless your car is worth upwards of £8K then your car will be safe.

Good luck with it.

Anondebtadvisor

I agree the information on the internet can be very confusing, unless your car is high value it is usually an excluded asset.

UpToMyNeckInIt

Mart,

I concur with the previous 2 posts.

I think you are getting confused with terms in bankruptcy about assets worth more than £1,000 being sold to pay debts.

An IVA is a good solution for a lot of people, but I am wondering if going BR may be a possibility for you? (I assume you have no property to protect for example).

Dependant upon your exact circumstances BR will be done and dusted right away, or via an IPA period lasting up to 3 Years (as opposed to a 5-Year IVA).

I accept that a 10-Year DMP (plus a further 6 years of bad credit file) is not realistic, but whilst in a DMP, you do have the breathing space to carefully consider all options before commiting yourself. Have a word with the CAB, the various debt charities, and some insolvency practitioners (they don't bite!!!).

Also worth a look at the 'IVA Support and Discussion' thread on this forum, as well as threads from other people going through a similar thought process to you.

Weigh up the pro's & con's of each option, but please don't rush into anything before properly researching each solution.

Best of Luck.

Foxy-Stoat_3

First point of call will be to claim back PPI first. If you can reduce your debt by a fair chunk and maybe restructure your debts you could avoid taking it further.....assuming you have reduced your lifestyle as much as possible.

Mart34

Hi Guys,
Thank you all for your advice, As far as the car goes, its definitely not worth over 8k. i've been in the DMP for a few years now, never missed a payment, and have held it in good standing, but it seems to be going on for far too long now and theres no light at the end of the tunnel, I can't currently see my life without debt. As with many in debt, there needs to be a solution, I want a solution whereby I can see an end in sight, with no one thinking any less of me. (having said that, I'm not really bothered what people think of me)

Again thanks all for the fantastic advice, I'll have a look into the terms and conditions of each solution, also will speak to the company who deal with the DMP and see what options are available to me.