Confused With IVA

MUMZ2BEE

I've been on my IVA for 2 years now.

I have some concerns with it and was wondering what I can do.

My debt is as follows:

Halifax Loan - £7K
Halifax Credit Card - £3200
Virgin Money Credit Card - around £900 ish
Littlewoods Catalogu roughly £300

My income is £888 per calender month.

Debt Free Direct say I can afford £130 a month, yet sometimes I am left with no money!!

I am also unhappy that they increased my IVA from a standard 5 years to 6 years forcing me to pay for longer which I feel is not helpful.

I was wondering if full bankruptcy is the better option.

I dont own any property but I live with a partner.

When my partner bought the property his solicitor ask me to sign a disclaimer as I had no financial interest in the property as I have not contributed to the mortgage itself.

I just dont want to pay 6 years into an IVA, is bankruptcy best?

Foxy-Stoat_3

What did your monthly expenditure form say you had spare and do you follow the budgets every month? I used an excel spreadsheet to carefully budget, still do now and its very helpful with planning all the annual bills.

What did your contract say that you agreed to, 5 or 6 years?

Is your name on the house deeds or mortgage and when did your partner buy the property?

MUMZ2BEE

Foxy-Stoat wrote: »

What did your monthly expenditure form say you had spare and do you follow the budgets every month? I used an excel spreadsheet to carefully budget, still do now and its very helpful with planning all the annual bills.

What did your contract say that you agreed to, 5 or 6 years?

Is your name on the house deeds or mortgage and when did your partner buy the property?

My name is not on the deeds or mortgage, and we are not financialy linked to each other at all.

We have separate bank acccounts.

My IVA is for 72 months which I am not happy about.

DFD said by the time all their fees was added my debt has soared to £14K which I am horrified at.

The house is in my partner's sole name and when he purchased it, his solicitor asked me to sign a disclaimer that I had no financial interest in the property as I had not contributed to the purchase.

I am wondering if bankruptcy is my best option because I dont qualify for a DRO.

Its been 2 years n this IVA and I'm fed up with it already!!

Foxy-Stoat_3

If you signed up to a 6 year IVA then you can stop paying and fail it. They will make you bankrupt after a few months.

If you want to go down this road then make your your partner's mortgage has been fixed at the best rate as he may find it difficult to secure the best rates if your registered as living there.

Not sure why you have no money though if your annual review expense plan was accurate and your sticking to the monthly budgets. IVA's aren't suppose to be fun, they are a step away from bankruptcy and the last restore as you would of been struggling to pay your bills and being about to afford food.

Is your partners income being taken into account or are you contributing too much to the bills, assume your partner knows your in an IVA?

MUMZ2BEE

Foxy-Stoat wrote: »

If you signed up to a 6 year IVA then you can stop paying and fail it. They will make you bankrupt after a few months.

If you want to go down this road then make your your partner's mortgage has been fixed at the best rate as he may find it difficult to secure the best rates if your registered as living there.

Not sure why you have no money though if your annual review expense plan was accurate and your sticking to the monthly budgets. IVA's aren't suppose to be fun, they are a step away from bankruptcy and the last restore as you would of been struggling to pay your bills and being about to afford food.

Is your partners income being taken into account or are you contributing too much to the bills, assume your partner knows your in an IVA?

My partner signed up for a 5 year fixed rate deal on his mortgage.

His income was not taken into account because he is not on any of my debts.

The CAB told me my IVA wont affect him and it wasn't mentioned by the mortgage advisor when he applied for the mortgage because nothing was said and his credit rating wasn't affected either.

My partner is fully aware of the IVA he was angry with me at first but at least he understands why I had to do it so I got some protection.

As I have said we are not financial linked to each in any way at all as everything has always been kept separate, I have always preferred to keep finances separated in case if we split up as it make it less complicated then!!

Foxy-Stoat_3

Well good luck with it but it WILL effect your partner if your living in the same house as you will appear on your partner's credit searches even if your not financially linked.

National_Debtline

Hello there,

As the others have mentioned, it could be worth posting up your statement of account - This will give us more of an idea as to whether continuing with the IVA is viable. if you are struggling it *may* be possible to ask your insolvency practitioner to call a creditors' meeting with a view to modifying the IVA - to seek a lower instalment. In practice this option may be difficult to achieve.

If you do have to stop the IVA, it will fail. I think it would be unlikely that Debt Free Direct will make you bankruptcy as it is unlikely that they'll get a return on the amount it would cost them. It may be that you would need to petition youself. There is a potential, cheaper alternative option called a Debt Relief Order. Depending on how much total debt you are left with it could be a route forward. To qualify for a Debt Relief Order your total debt would need to be below £15,000. Your disposable income owuld need to be below £50 per month. You cannot have any assets with over a total of £300.

Well good luck with it but it WILL effect your partner if your living in the same house as you will appear on your partner's credit searches even if your not financially linked.

I'm not sure that would be the case.

You can learn more about Debt Relief Orders HERE
You can also read about general insolvency-based options HERE

Best wishes,

David @natdebtline

Custard_Pie

All the more reason for everybody to keep an eye on their credit file. I checked mine and found an overpayment of £350, which I promptly claimed back. There were also debts and poor credit history accredited to my address, when they were for another property. At the time I lived at xxx High Street and the debtor lived at xxxA High Street. Credit files are only as good as the data input.

thinkpositive1

MUMZ2BEE wrote: »

My debt is as follows:

Halifax Loan - £7K
Halifax Credit Card - £3200
Virgin Money Credit Card - around £900 ish
Littlewoods Catalogu roughly £300

My income is £888 per calender month.

Hope you won't mind me adding to this debate but to recap:

• Your unsecured debts total £11,400
• Your IVA over 6 years would include for £9,360 of payments by you at £130 a month
• That equates 82% of your debts

I appreciate the IP takes some fees but that seems a hefty price to pay for an IVA.

MY IVA started off with payments that would have meant I paid about 25p in the £.

I successfully negotiated a variation on my IVA from £300 a month to £180 but alas falling income has made me get into arrears with it and it will fail but variations are possible.

My IP was really helpful with this and hope you get some good advice on this.

MUMZ2BEE

Thanks for all the above replies.

I've decided to go and the the debt advisor from CAB with regards to bankruptcy.

The way things are going with food prices, water and sewage, and especially as my cat is a diabetic and he needs constant care from the vets, my income is getting less and less each month.

I will need to see if I can get some assistance with bankruptcy fees.

In 2015, my benefits are under review again and as such I dont know if I would be entitled to any more money.

My cat's vet bills is ever increasing and I cant afford that and an IVA fee ontop every month.

I know for a fact that my partner's credit wont be affected as the debt goes on the person and not on the address.

Thanks for the help though!!

MUMZ2BEE

Just spoke to Debt Free Direct.

Apparently my IVA comes just under £10K!!

They said that if I loose my benefit entitlement next year, they can cal a meeting with the creditors to see if the will allow the IVA to complete early!!

If not, they said I should be entitled to a DRO!!

Feels so much happier now after hearing that one!!