Questions about an IVA

whatamesshelp

This might have been answered elsewhere but here goes.

I am looking into switching from a DMP to an IVA and wanted to know if I do the IVA, after year 6 will it be possible to get a mortgage, or is it still visible, I have read conflicting stories and its driving me crazy.

I currently have £31,000 pounds of debt in a DMP but I am only paying £100 a month and know that I will be paying for the rest of my life at this rate.

If I do the IVA this year I will be 41 by the time it is completed and have 2 young children and need to get some security. I know this is all my fault my debts just spiralled and I put my head in the sand.

Any help would be really appreciated.

Foxy-Stoat_3

Mortgages are possible after an IVA, depending on your deposit level.

Good luck.

longtermplanner

As Foxy-Stoat says, it will all depend on how large a deposit you have.

Do you have a house at the moment? If you do, then an IVA may be a possible solution but £100 a month is a very low payment. It won't take much to go wrong for you (higher energy prices? increase in mortgage rate?) for an IVA based on that to fail 5 years is a long time to make a legal commitment for, just because it is shorter than your DMP doesn't mean that it is a good idea.

If you don't have a house at the moment, I would strongly suggest that you look instead at bankruptcy. There your monthly payments would only last 3 years not 5. And if things go wrong, they are more easily reduced than in an IVA. IVAs are not easily flexible arrangements.

Getting a mortgage after bankruptcy or an IVA will depend on how large a deposit you have. With only £100 a month spare income, it is hard to see how you can realistically save up a deposit? I don't think worries about this should prevent you from going bankrupt. Your current situation is impossible, you need a clean start.

National_Debtline

Hello there.

We've a useful page on our website which discusses the various insolvency options in more detail, include fact sheets which specifically talk about IVAs and Bankruptcy: https://www.nationaldebtline.org/EW/information/insolvency/Pages/default.aspx

As Longtermplanner has already mentioned, Bankruptcy could be a faster and cheaper option - although there could be a few further implications. It *may* affect your employment or you tenancy although this is quite rare on both counts.

Very best wishes,

David @natdebtline